Marking its 10th anniversary, Coinone’s cumulative trading volume hits $339B

Standard Chartered joins China’s CBDC pilot trialsStandard Chartered Bank has joined the advanced stages of China’s central bank digital currency (CBDC) pilot trials, making it one of the world’s largest multinational banks to partake in such an initiative.Photo by Eric Prouzet on UnsplashEnabling e-CNY exchangeChina initiated its CBDC pilot trials over a year ago, with it being much further ahead of other CBDC initiatives internationally in terms of development. It has now expanded its trials to include more lenders, with Standard Chartered China becoming the latest participant.This development means that Standard Chartered Bank’s users in the Asian nation will soon have access to the digital version of the Chinese yuan by seamlessly integrating its platform with China’s dedicated CBDC app. According to an announcement by Standard Chartered Bank (China) Ltd. on Monday, the bank will be enabled, through partner firm City Bank Clearing Services Co., to offer its clients the ability to purchase, exchange or redeem e-CNY.In its announcement, Standard Chartered China’s President, Zhang Xiaolei, stated:“As an international bank rooted in the Chinese market for 165 years, Standard Chartered is optimistic about the development prospects of digital renminbi.”Joining e-CNY testing programThe e-CNY pilot testing program in China has been extended to 26 cities and provinces. Standard Chartered’s Chinese subsidiary will involve itself with supply chain financing, trade financing and cross-border merchant payments as part of that pilot program.The adoption of CBDCs is anticipated to reduce reliance on physical currency notes while ensuring transparent and tamper-proof transaction histories. China’s CBDC, known as the digital yuan or e-CNY (digital renminbi), has garnered international attention for its progressive approach to digital currency.Broader digital assets sector involvementStandard Chartered’s involvement in China’s CBDC pilot marks a milestone, emphasizing the bank’s commitment to digital innovation. However, the British banking conglomerate has had a broader approach to digital assets beyond this CBDC collaboration. A report by Nikkei Asia last month suggested that the banking group was making a concerted effort to develop its digital assets-related business within the Asian region through its Singapore-based investment arm, SC Ventures.Earlier this month, SC Ventures unveiled Libeara, a platform which plans to offer the first-ever tokenized Singapore dollar government bond fund. Subsidiary companies include digital asset custodian Zodia Custody and institution-first digital asset marketplace Zodia Markets.China has been at the forefront of CBDC experimentation, with initiatives like testing offline payment systems integrated with SIM cards. This innovative approach allows users to initiate CBDC payments by simply bringing their phones close to sale terminals. The trials, initially launched in major cities such as Shanghai, Beijing and Shenzhen, have encouraged residents to embrace e-CNY for everyday transactions.While China’s advancements in CBDC trials are noteworthy, other nations, including India, Japan and the U.S., are also actively engaged in the advanced phases of CBDC-related research and development. These global efforts seek to diversify financial settlement options, providing individuals with a broader range of choices in the evolving landscape of digital currencies.

Cronos Labs launches zkEVM chain testnetCronos Labs, the developer behind the Cronos blockchain ecosystem, is charting a new path in the blockchain space by launching a zkEVM chain.From Cosmos to EthereumThe Cronos zkEVM chain is being launched in the first instance as a test network. The layer-2 blockchain will rely upon ZK Stack, the software kit developed by Matter Labs. In this way, the project will be extending its scaling roadmap from Cosmos to Ethereum. As Matter Lab’s SVP of Business and Operations, Marco Cora put it:“When we introduced the ZK Stack, we opened up the door for anyone wanting to build on top of Ethereum to do so by deploying hyperchains. Whether you’re building a specialized Rollup or a general purpose one, hyperchains allow you to tap into Ethereum’s extensive userbase base and liquidity while preserving its robust security and decentralization.”The journey began with the creation of the first chain in the Cronos ecosystem — a Cosmos appchain developed in collaboration with Singapore-headquartered crypto platform Crypto.com and launched in 2021. Subsequently, Cronos introduced an EVM-compatible chain in 2022, built using the Cosmos SDK. Notably, these new endeavors complement, rather than replace, the earlier established chains.Photo by Kanchanara on UnsplashThe product of collaborative effortsA significant development in Cronos’ evolution is the introduction of zkEVM, a result of collaborative efforts involving Cronos Labs, Matter Labs and engineering teams from stakeholders Crypto.com and existing dApp developers. The zkEVM testnet is a breakthrough, utilizing Ethereum’s Sepolia testnet and incorporating zkSync’s open-source prover, Boojum — a STARK-based zero-knowledge proof system known for its efficiency in the layer-2 rollup space, with low hardware requirements and fees.The decision to launch a native Ethereum chain stemmed from challenges in bridging EVM chains and bridging between Cosmos and Ethereum, according to Ken Timsit, Managing Director at Cronos. Timsit emphasized the richness and robustness of the Ethereum developer ecosystem for building DeFi and NFT applications.Native account abstractionHyperchains within the ZK Stack share components, including a native bridge to the Ethereum mainnet and zkSync’s trustless bridging mechanism, ensuring assets remain secured by Ethereum. The implementation of zkSync’s native account abstraction allows transaction fee payments in various cryptocurrencies, including Cronos’ native token (CRO).Cronos’ zkEVM is anticipated to progress to the mainnet in the second quarter of 2024, marking a pivotal moment in the evolution of hyperchains.The landscape of hyperchains is expanding, with projects like GRVT and Tradable utilizing the ZK Stack. GRVT, a derivatives exchange, and Tradable, a tech firm focused on bringing private credit on-chain, exemplify the diversity and specialization within this emerging sector. Tradable aims to establish an institutional-focused hyperchain, potentially forming a decentralized chain alongside other institutional partners.Matter Labs views the zkSync hyperchain as a superior option compared to app-specific chains in Cosmos, emphasizing the scalability and security benefits. Hyperchains, a potential alternative to private blockchain frameworks like Hyperledger or Corda, offer technical scalability with the benefits of Ethereum. However, practical scalability remains a challenge due to cost considerations and the social coordination problem.

Korea to Tighten Scrutiny of Crypto Exchange Shareholders Amid Rising ConcernsSouth Korea’s financial regulator is stepping up efforts to evaluate the qualifications of majority shareholders of cryptocurrency exchanges, according to a report by local news outlet Newsis. This initiative follows instances where majority shareholders of local exchanges, including Bithumb, found themselves embroiled in criminal proceedings. Drawing parallels with the banking sector, the regulator is scrutinizing the credentials of majority shareholders to ensure compliance and integrity within the cryptocurrency exchange landscape.Photo by Terrence Low on UnsplashRevamping reporting requirementsThe Financial Intelligence Unit (FIU) under the Financial Services Commission recently set up a task force to revamp the reporting requirements for crypto exchanges.The upcoming requirements are anticipated to be integrated into the reporting forms that cryptocurrency exchanges must complete, starting in October of next year. Essentially, these stipulations will determine whether existing exchanges, such as Upbit, Bithumb, and Coinone, can sustain their operations in the future.Periodic evaluationAccording to the Enforcement Decree of the Financial Transaction Reports Act, all virtual asset service providers (VASPs), including exchanges, are mandated to submit a renewal report every three years. Upbit, having been the first to submit its initial report in October 2021, will join other crypto exchanges in updating their reports in October 2024.A majority shareholder qualification assessment is a process in which the government periodically checks whether majority shareholders have the necessary qualifications to operate a financial company. Through this process, the FIU aims to curb potential illicit activities by majority shareholders, who hold significant sway over cryptocurrency exchange operations, thereby mitigating any potential harm to the users.Regulatory grey areaThis measure emerged from concerns that majority shareholders of exchanges have existed in a regulatory grey area. In fact, under the Financial Transaction Reports Act, only exchange representatives and registered officers are required to report and undergo examination when declaring VASPs. This leaves the actual owners and controllers — the majority shareholders — unidentified and unexamined.The current circumstances involving VASPs are markedly different and more concerning compared to other financial sectors. In the banking sector, restrictions are placed on share ownership and voting rights if majority shareholders have breached financial laws or if they are capital entities forbidden from owning a bank. Similarly, online peer-to-peer lenders and large lenders are also under obligation to have their majority shareholders scrutinized, as they fall under analogous regulations.Fraud and manipulation allegationsThe heightened scrutiny is also thought to have been sparked by recent allegations of fraud and market manipulation involving some majority shareholders of Korean exchanges. For instance, Mr. Kang Jong-hyun, a majority shareholder of Bithumb, is currently facing a criminal trial for allegations of fraudulent and unfair trade activities under the Capital Markets Act. Additionally, Song Chi-hyung, the majority shareholder of Upbit and chairman of Dunamu, is facing a Supreme Court trial over alleged price manipulation through wash trading.Moves to amend legislationMeanwhile, efforts are underway in the National Assembly to amend the existing legislation. Yun Chang-hyun, a lawmaker from the ruling People Power Party and a member of the National Policy Committee, has recently proposed a bill to revise the Financial Transaction Reports Act. The amendment seeks to implement a majority shareholder screening system for VASPs.The proposed amendments would obligate VASPs, including crypto exchanges, to disclose information about their majority shareholders in their reports, thereby enabling the FIU to scrutinize any past financial crimes or economic offenses committed by these majority shareholders.