Bithumb lowers fees and enhances UX to bolster competitiveness

Singapore Bank Opens Branch in the MetaverseSingapore’s OCBC Bank has made its debut in the Metaverse with the opening of OCBCx65Chulia in Decentraland, a virtual platform that uses blockchain technology. The bank occupies nine plots of virtual land and visitors can access its website to open a bank account, apply for a credit card, and learn about its historical milestones and latest banking products and services.©Pexels/Andrea PiacquadioThe virtual branch got its name from its headquarters located at 65 Chulia St, OCBC Centre, Singapore. It is designed after OCBC Bank’s red logo, “a nod to the bank’s rich heritage,” the bank said in a statement.Reaching a larger and younger audienceOCBCx65Chulia represents a new way to connect with the younger generation, the bank added. “With the Bank’s arrival in the Metaverse, customers gain an additional access point that also represents a new way to engage with the younger crowd,” it said.The bank aims to tap into this emerging technology to reach a larger audience, said Peter Koh, Head of Group Technology Architecture at OCBC Bank.“Many have doubted the purpose of the Metaverse. Though a nascent and evolving space that we are still working to understand, the Metaverse remains one of the newer ways to make a connection. We are ready to tap on these, as they emerge, to reach a larger audience. At the same time, through experimentation and collaborating with an industry player, our younger colleagues can learn and develop themselves,” he said.GamificationIn the third quarter of 2023, OCBCx65Chulia will involve gamification, the bank said. This enhancement will come from the winning ideas of a group of Nanyang Polytechnic (NYP) Diploma in Interaction Design students who won the associated hackathon held in February 2023. The bank also collaborated with Web3 firm Memotics, an expert in emotive and social spaces through digital architectural design.Broader banking interestOCBC Bank, which opened its doors in 1932, is the second-largest in Southeast Asia by assets, according to Forbes. It is not the first bank in Singapore to venture into the Metaverse. Last year, DBS partnered with decentralized gaming virtual world The Sandbox to create an interactive Metaverse experience called DBS BetterWorld, which also forms part of its sustainability agenda.In February of last year JPMorgan became the first bank to enter the metaverse. At the time, it launched its virtual Onyx Lounge within Decentraland’s Metajuku Mall. The lounge featured a portrait of JPMorgan CEO Jamie Dimon, a spiral staircase and a dynamic roaming tiger.It also took the opportunity to release its “Opportunities in the Metaverse” report, in which it estimated a trillion dollar metaverse opportunity over the next few years. The metaverse has seen a plethora of well known corporations enter the space in recent times, including Gap, Adidas, PwC, Verizon and Nike.OCBC Bank’s move to the Metaverse represents a new era of banking where technology is used to reach a larger audience, especially the younger generation. With the Metaverse still being a nascent and evolving space, it is a new way to connect, engage, and experiment with the digital world.The gamification element in OCBCx65Chulia also shows how banks are exploring ways to make banking more interactive and fun. It will be interesting to see how other banks and financial institutions will follow suit and use the Metaverse to engage with customers and provide innovative services in the future.

The South Korean National Tax Service (NTS) is reportedly in the process of setting up virtual asset accounts for its district offices. This initiative is aimed at confiscating and liquidating the digital assets of individuals who fail to pay their taxes. This move comes after the creation of similar accounts by public prosecutors' offices, leading to speculation in the crypto industry that virtual asset accounts will soon be allowed for corporate entities as well.Photo by Nataliya Vaitkevich on PexelsDirect confiscation of virtual assetsA report by the local news outlet Etoday today has revealed that each district office of the NTS is working towards establishing a virtual asset account. This development will empower the tax agency to directly sell virtual assets confiscated from tax delinquents. Previously, the NTS would freeze the accounts of overdue taxpayers at Korean cryptocurrency exchanges, compelling them to convert their assets into Korean won. These funds were then confiscated by the NTS. The new initiative is set to streamline the process, enabling the tax authority to directly confiscate virtual assets without the intermediary step of conversion to Korean won. Speaking about this development, an NTS officer said that as each district office director holds the authority to collect taxes from taxpayers with overdue payments, it's necessary for each office to have its own account. Prosecutors’ Offices’ Upbit and Bithumb accountsThe crypto industry views this development as a potential step towards allowing the creation of virtual asset accounts for corporate entities, starting with government agencies. In December, the prosecutors' offices established their entity accounts at major cryptocurrency exchanges Upbit and Bithumb. Since then, the prosecution has utilized these accounts to sell confiscated virtual assets, aiming to recover funds that had not been collected.  An official from a cryptocurrency exchange indicated that the South Korean government is currently focusing on allowing entities that serve the public good to own virtual asset accounts. This approach is seen as the starting point, with expectations that the trend will gain momentum in the future. The official added that it's rare for the government to provide blanket permissions from the outset, suggesting a gradual and cautious approach to the integration of virtual asset accounts.Money laundering concernsMeanwhile, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC), along with other financial regulators, has remained silent on the matter of virtual asset accounts for corporate entities. This reticence stems from concerns with the financial authority that the introduction of corporate crypto accounts could potentially lead to money laundering and the creation of slush funds. An official from the National Assembly’s National Policy Committee said that they have not received any comments from the financial authority in response to inquiries about plans to allow such accounts for corporate entities. The current law doesn’t prohibit corporate entities from trading virtual assets. However, under the auspices of the financial authority, banks have refrained from offering real-name accounts to corporate entities. This policy has been a point of contention within the crypto industry. Advocates argue that allowing corporate accounts could mitigate issues of market manipulation and challenge the dominance of Upbit in the Korean cryptocurrency market.  The official from the cryptocurrency exchange pointed out that the financial authority does not have a clear legal basis for prohibiting the creation of corporate crypto accounts. They suggested that the regulator should develop clearer guidelines and enforce these rules for corporate entities. More serious discussions in AprilMore serious discussions about the introduction of corporate crypto accounts are anticipated to take place in April, following the conclusion of the general election. Last month, the main opposition party, the Democratic Party of Korea, made election promises to open the crypto market to institutional investors. Meanwhile, the ruling People Power Party has been quietly deliberating on virtual asset policy. Despite these political movements, earlier reports indicate a disconnect between the political parties' efforts to relax crypto regulations and the financial regulator's stance. Meanwhile, Hwang Seok-jin, a professor at Dongguk University’s Graduate School of International Affairs and Information Security, expects to see a conclusion on the permission of corporate crypto trading by the end of this year. He said that there has been ongoing discussion about the approval of spot Bitcoin exchange-traded funds (ETFs) and that allowing the trading of such funds requires the ownership of virtual assets by institutions. 

DeSpread, a Korea-based consulting firm specializing in Web3 and blockchain, announced today its partnership with Arbiturm, a Layer 2 network built on the Ethereum blockchain. This news was reported by local media outlet Etoday. Through the partnership, DeSpread aims to create an ecosystem for Arbitrum developers, seek collaboration with Korean enterprises and attract more onchain users. Photo by Sigmund on UnsplashArbitrum is one of the largest Layer-2 blockchains operating on the Layer-1 Ethereum network, designed to address the scalability issue of the ETH network. DefiLlama, a DeFi total value locked (TVL) aggregator, shows that Arbitrum has the fourth largest TVL among all chain networks, and the largest TVL among ETH-based Layer 2 networks. To foster Arbitrum-based services, DeSpread plans to distribute research content and development guides to Korean developers in an effort to bring down the language and cultural barriers when working with Arbitrum. Regular events featuring Arbitrum experts are also in store, set to be held both online and in-person formats. These efforts are intended to help companies seeking to adopt blockchain technologies collaborate with Arbitrum.   Forging an ecosystem within the Korean ETH communityJeff Kim, Head of operation at DeSpread, expressed his excitement about the partnership with Arbitrum, saying that Arbitrum is the network showing the strongest performance among all Layer 2 solutions on the ETH network. He added that Despread plans to support Arbitrum so that it can create its ecosystem within the Korean Ethereum community and raise its brand awareness. Nina Rong, Head of Ecosystem Development at Arbitrum, stated that Arbitrum has long been keeping an eye on Korea’s blockchain ecosystem. The partnership will help Arbitrum strengthen its position in the Korean market and shape a developer-friendly environment for individuals and businesses, she said.