DigiFT launches RWA depository receipt tokens

Korean Lawmakers Complete First Rough Draft of Virtual Asset User Protection BillKorean lawmakers have completed the first rough draft of the virtual asset user protection bill at a National Policy Committee meeting held later last month.©Pexels/Matthias ZomerAgreeing on term usage ‘virtual assets’So far, 18 bills have been proposed to regulate cryptocurrencies, and the lawmakers and the Financial Services Commission (FSC) agreed to use the term “virtual assets” to encompass similar terms such as digital assets and crypto assets.Phased enactment of billsThe bills are likely to be reviewed under the title “Virtual Asset User Protection Act.” The bipartisan group agreed to enact the bills in phases, introducing the user protection bill in the first phase and the virtual asset listing and issuance bill in the second phase.Meanwhile, there were mixed opinions on the content of the bills. In particular, there was debate over whether the bills should stipulate that the central bank digital currency (CBDC) is excluded from virtual assets, and whether the bills should include a standard for determining if a virtual asset is a security.Debate over stipulating CBDC’s statusThe stipulation of excluding CBDC from virtual assets was the most divisive topic since it would lead to defining the conditions for other assets such as non-fungible tokens. Moreover, the Act on Reporting and Using Specified Financial Transaction Information, which currently regulates virtual asset service providers (VASPs), does not contain any stipulation on CBDC. Some raised concerns that such discrepancies could later cause confusion. In the end, assembly members decided to discuss the matter again in April after consulting with the Bank of Korea and the Ministry of Government Legislation.Criteria for classifying virtual assets as securitiesRegarding whether to include criteria for classifying virtual assets as securities, the lawmakers and financial regulators took different sides.Lee Yong-woo, a member of the Democratic Party of Korea, underlined that a clear statement of the relationship between the issuer and the recipient of virtual assets in a whitepaper can determine their security status. He added that such provisions should be included in the bills.Park Min-woo, an FSC official, on the other hand, commented on a cautious note that in case virtual assets fall under the category of securities, they may not be applicable to the virtual asset act. He explained that VASPs might deal with both securities and virtual assets, and in such cases, there could be a misunderstanding that VASPs are not subject to the virtual asset act simply because they trade securities.

South Korea is taking new steps to bring cryptocurrencies more firmly into its legal, financial, and payment systems, with recent developments pointing to both wider institutional adoption and continued regulatory caution.Photo by Traxer on UnsplashCrypto status comes under reviewA research institute affiliated with South Korea’s judiciary has recommended amending the Civil Act to give cryptocurrencies clearer status as property. Digital Asset reported that the Judicial Policy Research Institute made the proposal in a February paper, arguing that the law should reflect how digital assets are already controlled, traded, and contested in legal disputes, even though the current Civil Act is built around physical objects. The institute said the lack of clear property status can create uncertainty in cases involving custody, hacking, bankruptcy, and asset recovery. It also called for a legal concept of “control” over digital assets, similar to possession in the physical world. The recommendation does not change the law on its own, but it strengthens the case for crypto legislation that deals not only with market oversight and investor protection, but also with ownership and legal remedies. Crypto holdings are also set to be included in government debt-relief screening. According to Yonhap News, the Financial Services Commission said a revised Credit Information Use and Protection Act passed the National Assembly, allowing government-backed debt relief agencies to review applicants’ deposits, securities, cryptocurrencies, income, and property records when assessing repayment capacity. The measure is intended to reduce the risk of applicants hiding assets while seeking public support and to improve fairness in debt-relief programs. Payment pilots meet regulatory limitsIn payments, fintech platform Toss has signed an agreement with KOMSCO, South Korea’s state-run mint and identity-document agency, to develop blockchain-based payment infrastructure, according to Yonhap Infomax. The partnership will initially focus on linking Toss’s payment network with public-sector payment infrastructure, before exploring tokenized payment tools such as deposit tokens and stablecoins. The deal pairs one of Korea’s largest consumer fintech platforms with a public agency that already runs municipal voucher programs and digital gift certificates. Regulators, however, remain cautious about token projects launched before a broader legal framework is in place. Aju Business Daily reported that the Korea Insurance Institute has not yet received approval from the Financial Services Commission for proposed changes that would allow it to issue a token tied to its training programs and establish or invest in an AI subsidiary. The institute says the plans are still under regulatory review, but the delay reflects concerns over whether token issuance fits its role as a training body for insurance professionals. 

Circle Partners with Asian Convenience Store Chain to Push USDC AdoptionCircle, the issuer of US dollar stablecoin USD Coin (USDC), has entered into a strategic partnership with Taiwanese cryptocurrency service provider BitoGroup and Taiwan FamilyMart, the nation’s second-largest convenience store chain.The primary objective of this collaboration, which Circle announced on Thursday through the publication of a statement on its website, is to expand the utility of loyalty points and enhance their intrinsic value, all the while driving the adoption in the use of USDC in Taiwan.Photo by Jiachen Lin on UnsplashFocus on loyalty pointsThe partnership introduces an innovative service known as “Points-to-Crypto,” accessible through the Taiwan FamilyMart App and the BitoPro Exchange. This service empowers customers to seamlessly convert their FamilyMart loyalty points, commonly known as FamiPoints, into digital currencies such as USDC.This conversion not only preserves the value of loyalty points but also incurs no transaction fees, effectively democratizing access to the world of cryptocurrencies. This move aligns with Circle’s overarching strategy to push the boundaries of digital asset innovation.Broader strategyCircle unveiled a broader strategy along these lines in June. The focus has been on collaborations aimed at transforming how consumers and institutions in the Asia Pacific (APAC) region engage with the digital dollar, especially USDC, to facilitate quicker and more efficient financial transactions. In June Circle acquired a full trading license from the Monetary Authority of Singapore (MAS).Last month it emerged Circle has been actively integrating its Web3 Services platform into the well-known Grab platform. Grab is Southeast Asia’s super app for transportation, deliveries, payments, and more. This integration, initially set to debut in Singapore, seeks to elevate user experiences through blockchain-enabled solutions. Grab has 25 million monthly active users in Southeast Asia.Integrating Circle’s Web3 services and bringing them to these customers eventually will mean a direct touch point for Web3 in their daily lives, and the active use of a digital wallet for each and every one of them.This latest development assumes significance in Taiwan due to the country’s high density of convenience stores, where loyalty points hold substantial value. According to the Market Intelligence & Consulting Institute (MIC) in Taiwan, “Points Accumulation and Redemption” ranked as the most practical function among four primary retail app functions in their 2021 consumer behavior survey.Local industry partnersBitoGroup, one of the primary partners in this initiative, boasts a membership base nearing 800,000 and holds a market share of approximately 90% in Taiwan. BitoGroup offers a diverse range of services, including BitoPro, a cryptocurrency exchange; BELS, an NFT empowerment platform; and O2 META, which is a metaverse-focused social media platform.For nearly a decade, Taiwan FamilyMart and BitoGroup have offered customers the ability to purchase Bitcoin at convenience store locations nationwide. This new partnership signifies a shift from physical convenience stores to online experiences, enabling access to innovative financial tools and reinforcing Taiwan’s position as a digital economy leader.This latest partnership marks a significant milestone in bringing Web3 and digital currency into active and mass market use among ordinary people in Taiwan. The development coincides with Taiwan’s legislature and regulators currently working on the introduction of a regulatory framework for digital assets.