HKMA forms working group to establish tokenization standards

South Korean gaming publisher Wemade opened sales for its “The Night is Coming” NFT collection on Jan. 11 to 12 to celebrate pre-registration for the global version of the massively multiplayer online role-playing game (MMORPG) Night Crows. All 341 NFTs were sold out, according to an official press release on Thursday (KST).Photo by Choong Deng Xiang on UnsplashUnveiling exclusive NFTsThe NFT Collection featured NFTs of different tiers, including Uncommon and Rare NFTs that went on sale on Jan. 11, as well as Epic, Legendary and Mythical NFTs that were available on NILE – short for “NFT Is Life Evolution,” a decentralized autonomous organization (DAO) and NFT marketplace on WEMIX3.0 – the next day. All NFTs were sold out within a day. Blockchain-backed fantasy gameBuilt on Unreal Engine 5, a three-dimensional computer graphics engine used for game and content development, Night Crows features high-quality graphics, an immersive world, realistic action and major in-game battles. It has topped the popularity and revenue charts on major app markets in South Korea since its launch in April last year. The global version of the game, which is scheduled for release in March, will harness blockchain technology and a multifaceted tokenomics system that tokenizes in-game items. It will also introduce character NFTs that keep character and player data in one place, connecting the game’s internal and external economies. Wemade also stated that owners of the NFTs can exchange them with CROW, the game’s native token, starting on April 1. The token’s value is stabilized by a minting process controlled by the Peg Stability Module (PSM), which allows users to swap a native stablecoin for other protocol-accepted stablecoins at a 1:1 rate.

The Thai government is planning to enable tourists to spend crypto via credit card, according to information revealed by Thailand’s finance minister on May 26.Photo by rc.xyz NFT gallery on UnsplashPichai Chunhavajira, the Southeast Asian nation’s finance minister and deputy prime minister, delivered a keynote speech at an investment seminar in Bangkok in which he outlined that while some countries enable people to purchase goods directly with cryptocurrency, another option is to allow consumers to link their digital assets with other services such as credit cards.  In that way, the consumer can spend crypto through credit card services. English language news outlet The Nation reported that Chunhavajira confirmed that the government is preparing to launch a pilot project that would allow tourists to spend crypto in this manner within Thailand. Seamless conversion from crypto to fiatWith this system, merchants would still receive payment in Thai baht. From the point of view of the user, crypto could be spent but any exchange between crypto and fiat currency would happen seamlessly and automatically via the credit card service provider’s platform.Discussions between officials from the Bank of Thailand and the Ministry of Finance are ongoing with regard to the proposed scheme. It’s understood that similar existing models which have been introduced overseas are being examined. It’s likely that the pilot program is the same as the project that was announced by Chunhavajira in January when he alluded to a program enabled for foreign tourists visiting the Thai tourist resort of Phuket. At that time, it was envisaged that the scheme would adhere to existing legal frameworks and implicate identity verification through a third party service provider, with conversion from crypto to Thai baht to be enabled such that there would be no material difference experienced by merchants. Targeting touristsThis is not the first occasion in which tourists have been targeted by crypto-related initiatives. Earlier this month, it was announced that Binance Pay, a crypto payment service offered by global crypto exchange Binance, had partnered with the government of the Buddhist kingdom of Bhutan to launch the world’s first national-level crypto tourism payment system. In July 2024, the governor of Jeju Province in South Korea advocated for the use of non-fungible tokens (NFTs) and crypto as part of Jeju Island’s tourism strategy. Last December the province announced a digital transformation roadmap that sets out a cashless future. Plans include the introduction of a system for converting digital assets and facilitating payment methods from neighboring countries like China and Japan. However, not all governments have been keen to facilitate tourists in spending crypto. In May 2023, the governor of the province of Bali in Indonesia cautioned foreign visitors to the region against the use of cryptocurrencies as a means of payment for goods and services. Governor Wayan Koster warned that visitors using cryptocurrency for payments could face severe consequences, including criminal penalties and deportation.

South Korean retail investors are pulling back from cryptocurrencies after months of falling prices, rotating capital into domestic equities in a sharp reversal from last year’s trading boom, according to a report by Bloomberg.Photo by Timothy Ries on UnsplashCrypto prices have declined since October, leaving many individual traders nursing heavy losses. In January, trading volumes on local exchanges have dropped roughly 65% year-on-year. By contrast, trading value on the KOSPI, the primary benchmark index of Korea's stock market, has surged 221% over the same period, reflecting a decisive shift in retail risk appetite. Korean investors—who had heavily favored volatile altcoins—are now reallocating funds into domestic and overseas equities, particularly artificial intelligence and robotics stocks. Brokerage margin balances have surpassed 30 trillion won ($20.8 billion), suggesting speculative capital has migrated rather than disappeared. South Korea has long been one of the world’s most retail-driven crypto markets, with individual investors playing an outsized role in price formation and trading volumes. The recent downturn, however, has exposed the risks of a market concentrated in smaller tokens. The rotation back to equities has also coincided with political momentum around boosting the stock market, including President Lee Jae-myung’s pledge to push the KOSPI toward 5,000. Ownership limits spark debateAs retail enthusiasm cools, regulatory questions are moving to the forefront. A debate has emerged over potential limits on major shareholders’ stakes in crypto firms—a proposal that has stirred controversy over governance and competitiveness. According to MoneyToday Broadcasting MTN, Democratic Party lawmaker Min Byoung-dug recounted a recent dinner conversation in Seoul in which Eric Trump, the second son of U.S. President Donald Trump, reportedly reacted skeptically to the idea. Trump was said to have questioned whether such ownership restrictions would be conceivable in the United States. Supporters argue that ownership caps could strengthen oversight and reduce excessive concentration of control in crypto firms. Critics warn they could deter investment and weaken Korea’s position in an increasingly competitive global market. Innovation continues despite slowdownEven as crypto volumes shrink, financial innovation tied to digital assets is pressing ahead. Decentralized exchange Lighter said on X that it will support perpetual futures contracts linked to major Korean equities. The products include exposure to Samsung, SK Hynix, and Hyundai, as well as a KOSPI index-based contract with 10x leverage. The move reflects a broader convergence between crypto platforms and traditional financial assets.  Regional competition intensifiesKorea’s regulatory direction is also being watched across Asia. Speaking at the Consensus Hong Kong, lawmaker Johnny Ng said the city could draw lessons from South Korea and the United Arab Emirates in shaping its crypto framework. According to CoinDesk, he noted that the UAE has established a robust regulatory structure with dedicated oversight, while Korea operates a government body tasked with supervising crypto activities. As financial centers compete to attract crypto businesses, clarity in regulation has become a strategic differentiator. For now, Korea’s crypto market appears to be recalibrating rather than collapsing—with retail traders retreating, policymakers debating guardrails, and new leveraged products testing the boundaries of innovation. Whether this marks a transition toward a more mature phase or merely a pause in speculative fervor may depend on how the country balances investor protection with growth.