Samjong KPMG and Xangle seminar says crypto market will improve this year

Korean Crypto Exchange Giants Lead Market Expansion With Increased ListingsSouth Korea’s top three cryptocurrency exchanges Upbit, Bithumb and Coinone have all increased the number of cryptocurrencies they listed for trading this year compared to last year, making them responsible for leading the market’s activity and expansion.Photo by Maxim Hopman on UnsplashDynamic shifts in listing and delisting trendsA recent analysis by local news outlet News1 on the number of cryptocurrencies listed and delisted this year on the country’s major fiat-to-crypto exchanges Upbit, Bithumb, Coinone, Korbit and Gopax — listed in order of market share size — revealed that Upbit and Coinone have increased their number of listings and delistings compared to last year.The remaining three exchanges, on the other hand, showed differing results. Bithumb increased its number of listings by 47 compared to the number listed last year, while delistings decreased by three, and Gopax listed eight fewer tokens and delisted one more token. Meanwhile, Korbit’s listings decreased by 37 tokens, while delistings decreased by only one.Among the five exchanges, Bithumb listed the highest number of new cryptocurrencies this year, with 80 new currencies in total added as of Monday (local time). This represents a more than double increase compared to the 33 currencies added last year. It is also 18 more than Coinone’s 62 new currencies and 50 more than Upbit’s 30.Differing approaches based on situational factorsGopax and Korbit have taken a more conservative approach compared to Upbit, Bithumb, and Coinone, which have been more aggressive in their listing strategies. In particular, as of Oct. 4, Bithumb has also been offering free transaction fees in an effort to regain its market share. This aggressive approach can be interpreted as an effort to weather the recent crypto winter, although it hasn’t been very successful.Conversely, the exchange that delisted the most cryptocurrencies this year was Coinone, with 38 taken down as of Monday, marking a significant increase compared to last year when it delisted 26. This can be accredited to the platform’s efforts to improve its reputation and operating system following an incident earlier this year where two former employees were booked for taking bribes in exchange for listing certain cryptocurrencies. Coinone CEO Cha Myung-hun subsequently issued an apology and pledged to take proper measures to prevent such an event from recurring. Since then, the exchange has been actively looking into carrying out delistings tied to issues like the amount of currency in circulation or market price manipulation.Bithumb and Upbit came in second and third for most delistings this year, with 22 and 18, respectively.However, Korbit showed the least fluctuation in the number of listings and delistings this year — nine and three, respectively — among the five exchanges. This is a sharp contrast owing to its conservative listing policy. Speculation suggests that the platform might adopt a more aggressive stance if market conditions improve in the second half of the year.On the other hand, Gopax listed 10 tokens and delisted eight tokens. The exchange has notoriously been dealing with operational difficulties due to regulatory roadblocks despite optimistic outlooks after its acquisition by Binance, one of the world’s most prominent exchanges. Along with the recent appointment of Cho Young-joong as the new CEO of CityLabs, the company that acquired an 8.55% stake in Gopax, the exchange has been working on resolving regulatory issues and improving the state of operations.

Korean Crypto Expert Claims NFTs and Security Tokens Shouldn’t Be a Priority for Investors YetAlthough there has been a lot of speculation recently regarding the prospects of non-fungible tokens (NFTs) and security tokens as lucrative investment opportunities, these topics should not be of concern yet, said Kim Dong-hwan, CEO of Korean crypto consulting firm Wonder Frame, at Tuesday’s 2023 FNTimes Investment Forum hosted in Seoul by the Korean Financial Times.Photo by Markus Winkler on UnsplashFrom a price-to-earnings perspective, these types of investments should not be of priority to the average investor, Kim said, stating that this argument is rooted in historical context. Bitcoin, the kingpin of cryptocurrencies, had its first breakthrough in 2012 when its price was around $13. Since then, its value has skyrocketed nearly 2,000 times. Those who profited from Bitcoin then went on to invest in Ethereum, the second-largest cryptocurrency by market capitalization. Ultimately, the money earned from Bitcoin was constantly circulating in the crypto market.Grappling for liquidityHowever, Bitcoin’s liquidity — the frequency at which assets are bought and sold, which can be deemed the most important aspect of investing in and trading cryptocurrencies — is currently down. Liquidity in the crypto market usually flows in order from Bitcoin first, to altcoins, then to NFTs, Kim explained, because investments in NFTs are made by people who hold cryptocurrencies, not Korean won. Therefore, NFTs, which have now experienced more than a 90% decline from their peak, must depend on Bitcoin’s price recovery for their own resurgence.Securing liquidity for security tokens is also difficult, considering the fact that while these assets share common characteristics with cryptocurrencies, they are subject to strict regulatory oversight by financial authorities such as the Korea Exchange. Therein lies the difficulty in forecasting the prospects for security tokens.Kim thus questioned whether there would be market makers or liquidity providers that would be willing to boldly step into the role of satisfying the market, given the close scrutiny of authorities such as Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS). Although crypto exchanges like Upbit act as market makers by facilitating daily trading worth trillions of won, speculation suggests that securities firms that are responsible for supplying security token liquidity may find it challenging to do the same.Weak investments and negative perceptions of DeFiAnother concern for security tokens is fractional investments, which tend to be concentrated on assets of lower value. “Security tokens are fundamentally about dividing underlying assets and then selling them. However, in many cases, these underlying assets are of lower value or have no choice but to be traded this way,” Kim said.Kim also mentioned the regulatory hurdles hindering decentralized finance (DeFi) in general, despite its reputed appeal. “DeFi is perceived by international organizations like the Financial Stability Board (FSB), the US Federal Reserve System, and the European Union (EU) as a public enemy that causes financial instability in the real world,” he said.Taking all these factors into consideration, Kim recommended against investing in security tokens or NFTs at this time, given the current situation where even Bitcoin’s liquidity is at an all-time low. He suggested that, with market interest rates approaching 5%, unless there is a specific need to invest in virtual assets, it may be better to explore investment options positioned for higher interest rates.Kim is an industry expert who has previously written articles for crypto news site CoinDesk Korea for four years and has taken on the role of Chief Business Development Officer (CBDO) at Blitz Labs, a virtual asset research firm. He founded Wonder Frame in 2022, where he currently works as a professional consultant.

Crypto emerges as topic in Indonesian election campaignAs Indonesia gears up for its upcoming presidential election, the country’s crypto market has become a focal point for political discourse. Gibran Rakabuming Raka, a vice presidential candidate and the eldest son of President Joko Widodo, recently unveiled his plans to foster expertise in blockchain and crypto within the Southeast Asian nation.Chosen as the running mate for presidential candidate Prabowo Subianto, the 36-year-old politician aims to elevate tech education in Indonesia, opening avenues for the younger generation, particularly in the realm of digital assets. According to a report by Indonesian online news portal detikNews, while speaking at a political gathering on Dec. 10, Gibran asserted:“We are preparing blockchain experts, we are preparing cyber security experts, we are preparing crypto experts.”Photo by Nick Agus Arya on UnsplashCrypto potentialIndonesia has emerged as being ahead of the curve in terms of crypto adoption, ranking seventh on Chainalysis’ 2023 global crypto adoption index. With an estimated 18 million crypto investors, the country boasts a robust industry association that also functions as a self-regulatory body.Local news media reported in October that the Southeast Asian country has seen a 10.1% year-on-year increase in the number of crypto investors. At the time, Tirta Karma Senjaya, Head of the Commodity Futures Trading Regulatory Agency, said, "Growth in the number of crypto investors in Indonesia continues to increase, but investors are still looking for the right time to buy crypto.”Private sector entities have also identified the raw potential. In the same month, Web3 consulting firm Tiger Research, in partnership with South Korean crypto data platform Xangle, produced a report which identified significant potential for the development of Indonesia’s Web3 market. There are over 30 crypto exchanges operating in the country, acting as the primary channel through which growth in crypto is propelled in Indonesia.Capitalizing on crypto interestThe government, under President Widodo, has actively sought to capitalize on this crypto enthusiasm, going as far as establishing a local “stock market” dedicated to crypto assets.Gibran’s proactive stance on crypto education aligns with his broader vision of positioning Indonesia at the forefront of the global digital revolution. The country’s rapidly growing tech landscape and crypto adoption make it an opportune space for fostering expertise in these cutting-edge technologies.As the presidential election approaches, Gibran’s commitment to cultivating a pool of crypto experts underscores the potential influence of the crypto industry in shaping Indonesia’s economic future.An international topicCrypto is increasingly becoming an important topic in elections globally. In the United States, many of the presidential candidates, particularly within the Republican Party, have publicly expressed their interest in crypto and blockchain. Yesterday, Ripple CEO Brad Garlinghouse took to the X social media platform on the subject, stating:”Team @Ripple is putting a stake in the ground, leading the charge with other industry leaders to support pro-innovation and pro-crypto candidates in the 2024 US election cycle. The US cannot afford to continue taking a back seat on the global stage.“With Indonesia’s election frontrunners, Prabowo and Gibran, expressing interest in the sector, it remains to be seen how this focus on crypto will resonate in the upcoming political debate on Feb. 4.