Lillius selected to join Cronos Accelerator Program

Korean Firms Join Forces to Expand the Security Token MarketSouth Korean tech firm AIITONE announced today that it signed a memorandum of understanding (MOU) with real estate developer Korea Asset Development to expand security token businesses, according to a report by news agency Newsis.Photo by Shubham Dhage on UnsplashVentures into fintechAIITONE is renowned for its expertise in applying extended reality (XR) technology to smart defense and metaverse projects. In their latest strategic move, they have hired a blockchain tech group to venture into fintech sectors, with a specific focus on security tokens.Real estate expertiseKorea Asset Development, a real estate developer engaged in multiple projects nationwide, is currently involved in the development of upscale housing in Seoul and Busan, high-end residences in Songdo, as well as luxury resorts in Chungcheong and Gangwon Provinces.Through their collaborative endeavors, AIITONE and Korea Asset Development seek to capitalize on their respective technological expertise and knowledge. They plan to share their know-how and establish a comprehensive cooperation framework, specifically targeting content development associated with security tokens. Furthermore, both parties have committed to consistently exploring new areas of cooperation.Security token opportunitiesIn particular, the two companies have identified real estate due to its relatively easier valuation compared to other assets. The market for real estate security tokens in Korea is projected to reach 34 trillion KRW ($26 billion) by 2024. It is estimated that financial services, including real estate, account for approximately 70% of the total security token market size.AIITONE CEO Lee Jin-yup underlined the importance of cooperation with a range of players that bring diverse resources, considering that the security token market involves high-value tangible assets such as real estate, music, and artworks. He said the partnership with Korea Asset Development will help the company secure a competitive edge in the burgeoning real estate security token market.Development in JapanNot just South Korea, but other East Asian nations too are experiencing significant strides in the security token market. Japan serves as a case in point, with companies like Mitsui & Co. Digital Asset Management (Mitsui & Co. DAM) exploring the potential of this emerging market.Mitsui & Co. DAM last month introduced a platform that allows retail investors to access security tokens backed by real-world assets. This initiative opens up previously inaccessible investment opportunities to a broader range of participants.Moreover, the Tokyo Metropolitan Government has taken an active role in supporting security token businesses within its jurisdiction. From May 31, 2023, to February 29, 2024, the government runs a subsidy program for security token projects based in the capital city. Under this program, eligible businesses can receive subsidies of up to 5 million yen ($36,000) per project.

Thailand's Securities and Exchange Commission (SEC) has approved the leading U.S. dollar stablecoins USDT and USDC, expanding its list of approved cryptocurrencies within the Southeast Asian country.Photo by Tarun Ottur on UnsplashListing on regulated exchanges The approval was announced in a statement published on the SEC website on March 6. It means that Tether’s USDT and Circle’s USDC can now be listed on regulated exchanges in Thailand. The regulator had arrived at its decision to add the two stablecoins following a public consultation process regarding regulatory changes. Those changes were finalized last month and will now proceed to go into effect on March 16. The two stablecoins join five cryptocurrencies that had previously been approved. These include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Stellar (XLM). Certain cryptocurrencies are also being used for the testing of payment settlement through the Bank of Thailand’s Programmable Payment Sandbox.   A regulatory sandbox is a controlled environment testing ground for products and services developed within the private sector. Back in June of last year, the Southeast Asian country’s central bank launched an enhanced regulatory sandbox focused on programmable payments.  USDT issuer Tether responded to the addition of its stablecoin within the approved cryptocurrency list, stating: “This approval enables USD₮ to be traded within the country, facilitating its listing on regulated exchanges and paving the way for USD₮ to be accepted for payments, which advances the region’s leadership in digital asset innovation.” Tether CEO Paolo Ardoino said that the company sees value in the Thai market and with that, it intends to continue to explore ways to broaden its service offering within Thailand. He added:  “We are committed to supporting the long-term success and adoption of stablecoins in Thailand and look forward to contributing to the growth of the country’s digital asset ecosystem by fostering a strong and sustainable stablecoin infrastructure.” Stablecoin market growth According to DeFi data aggregation platform DefiLlama, the stablecoin market now stands at $227 billion in terms of market capitalization. This represents a 68% increase by comparison with the size of the market in 2023. It indicates that stablecoin adoption is on an upward growth trajectory. Digital assets are being used in many instances to facilitate international payments and remittances, particularly in emerging markets. In Europe, American investment bank JPMorgan recently forecasted that the introduction of the Markets in Crypto-Assets (MiCA) regulation will drive euro-pegged stablecoin growth.  Meanwhile, in the United States, S&P Global Ratings recently identified that a current lack of stablecoin regulation is acting as a barrier to broader institutional use. The company anticipates adoption growth once regulatory clarity has been achieved. Vlad Tenev, CEO of commission-free investing platform Robinhood, stated last month on Yahoo Finance’s Opening Bid podcast that stablecoin legislation will be passed in the U.S. in 2025. Tenev believes that applying a 4% interest rate to stablecoins would lead to a greater rate of adoption.

Chinese Court Recognizes Virtual Assets as Legal PropertyAccording to a recent report published by the People’s Courts of the People’s Republic of China, a Chinese court has recognized the legal status of virtual assets, having analyzed their attributes within the framework of Chinese criminal law.The court unequivocally stated that virtual assets are considered legal property under the current legal policy framework and are thus protected by law.The People’s Courts of the People’s Republic of China exercise judicial power independently, free from interference by administrative or public organizations. They have responsibility for adjudicating civil, criminal, and administrative cases.Photo by Christian Lue on UnsplashProperty classificationLocal news source Odaily News reported on the development on Friday, indicating that the report, titled “Identification of the Property Attributes of Virtual Currency and Disposal of Property Involved in the Case,” explicitly recognized the economic attributes of virtual assets, leading to their classification as property.This declaration is particularly significant in light of China’s sweeping ban on decentralized cryptocurrencies. Despite this ban, the report argues that virtual assets held by individuals should enjoy legal protection within the existing policy framework.Furthermore, the report proposed recommendations for addressing crimes involving virtual assets. It emphasized that in cases where money and property are involved, confiscation should be based on the integration of criminal and civil law. The approach taken aims to strike a balance between safeguarding personal property rights while also addressing broader social and public interests.Contentious approach to cryptoWhile China has been making every effort to promote its central bank digital currency (CBDC) and the development of blockchain and metaverse-related technology within the country, its stance on decentralized cryptocurrencies has been contentious at best.Its approach in that respect has been marked by a blanket ban on crypto-related activities such as mining and trading and the prohibition of foreign crypto exchanges from serving customers within mainland China. Nevertheless, Chinese courts have consistently taken a more nuanced view without necessarily contradicting the government’s approach.Differing interpretationsThe divergence between national policy and court rulings first emerged in 2019 when the Hangzhou Internet Court found that Bitcoin is a form of virtual property, and on that basis, it is safeguarded by the law from the point of view of property rights. In May 2022, a Shanghai court affirmed that Bitcoin qualifies as virtual property and, as such, falls under the purview of property rights.Global issueIt’s not just the Chinese courts that are grappling with the issue of clarifying property rights relative to virtual assets. In April of this year, a case in Hong Kong involving defunct crypto exchange Gatecoin resulted in the courts determining that cryptocurrency is property and that on that basis, it’s “capable of being held in trust.”In July a Singaporean court determined that cryptocurrency is capable of being held in trust and on that basis, it should be recognized as property. Earlier this year, the High Court of Justice in London recognized non-fungible tokens (NFTs) as property.The report from the People’s Court reaffirms the legal status of virtual assets as protected property under Chinese law. This development highlights the ongoing divergence between China’s regulatory policy and the judicial interpretation of virtual assets, signaling a potential evolution in the country’s approach to cryptocurrencies.