Hong Kong regulator set to grant additional crypto exchange licenses

Daegu Recruits First Cohort of Youth Blockchain Startup SchoolThe Daegu Metropolitan City Public Agency for Social Service has opened applications for the first cohort of the new Youth Blockchain Startup School, which aims to foster a blockchain-based ecosystem in Daegu by offering education and support for local youth in pursuing entrepreneurship.Photo by topaz sun on UnsplashNurturing innovation among the youthA comprehensive program will be offered at the school, covering a wide range of areas from theory to entrepreneurship and consisting of five stages: theoretical and practical education on blockchain and digital assets, exploration of blockchain-based startup models, selection of viable startup models, support for practical entrepreneurship and growth, and monitoring business acceleration and issue support.The theoretical education courses will be led by Park Sung-joon, Director of the Blockchain Research Center at Dongguk University, and the practical education will be led by Professor Choi Sei-woong from the same university, according to the agency.The school will be in session for three separate programs, with the first starting this September, the second in January of next year, and the third scheduled for May 2024. Each program is set to span a period of four months. The upcoming inaugural program will run from September 1 to December 31.Application detailsApplications are open until August 31 to all youth, both as a team or individually. They can be submitted through the Daegu agency’s lifelong learning online website.

South Korea's Democratic Party of Korea (DPK) plans to introduce a bill this week aimed at establishing a legal framework for digital assets, according to Edaily. The move is part of the party's ongoing efforts to advance its crypto policy agenda ahead of the upcoming presidential election. The proposed law would define the legal status of digital assets and set rules for their issuance, distribution and listing. The bill is expected to keep the requirement for Korean won-pegged stablecoin issuers to obtain authorization with a minimum reserve of 5 billion won ($3.58 million), a key point of debate.Photo by Brady Bellini on UnsplashA DPK official stated that the bill has been drafted and is set to be introduced to the National Assembly this week, following feedback from internal subcommittees. Most of the provisions remain consistent with last month’s draft, but final comments are still being collected on stablecoin reserve requirements, which have been a major point of discussion. Defining digital assetsThe bill defines digital assets as "electronic records with economic value based on blockchain technology" and establishes a regulatory framework for issuers, exchanges and custodians. Key provisions include permitting initial coin offerings (ICOs) and creating a digital asset committee under the Financial Services Commission (FSC). This committee would oversee legal framework design, market monitoring, and policy promotion. Additionally, an industry association will establish a separate committee to oversee token listing practices, ensuring consistent listing standards across exchanges. The most contentious part of the draft has been the regulations for won-based stablecoins. It classifies stablecoins as digital assets akin to fiat currency, requiring a minimum reserve of 5 billion won and authorization from the FSC. It also mandates real-time reserve disclosures, secure asset custody and quarterly reporting. Divide over stablecoin reserve requirementOpinions on the reserve requirement are divided. Some industry insiders argue that the 5 billion won threshold is too high, creating a barrier for startups. Others believe a minimum capital requirement is necessary due to stablecoins' role in payments and their potential as currency substitutes. Lee Jung-yup, president of the Blockchain Law Society, stressed that stablecoins must maintain a basic level of trust, warning that those failing to meet the 5 billion won threshold could become prone to insolvency or fraud. However, Lee acknowledged concerns about the centralized regulatory approach led by financial authorities and the potential for market dominance by large corporations. He suggested exploring the creation of an independent regulatory body for cryptocurrencies, warning that overly strict regulations could stifle domestic digital finance innovation amid growing global competition. Crime surges with market growthWhile regulations continue to evolve, crypto crimes are also rising sharply amid the expanding digital asset market. According to Segye Ilbo, South Korean police arrested about 2,100 individuals for crypto-related offenses last year—17 times more than in 2017, when data collection began. The total losses from such crimes now exceed 1 trillion won ($714 million) annually. Since the election of U.S. President Donald Trump, known for his crypto-friendly stance, Korea's crypto market has experienced rapid growth. This surge has raised concerns about an increase in fraud targeting investors chasing quick profits. 

Abu Dhabi’s ADGM unveils DLT foundations regulationsThe Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has officially unveiled the Distributed Ledger Technology (DLT) Foundations Regulations 2023, marking yet another milestone in the evolution of digital assets regulatory frameworks both regionally and internationally.Photo by Kamil Rogalinski on UnsplashFramework for DAOs and foundationsThe new regulations were published to the ADGM website on Wednesday, with enactment occurring on Thursday. This legislative framework has been crafted to offer a comprehensive structure for DLT foundations and decentralized autonomous organizations (DAOs), addressing their unique operational needs within the blockchain sector. ADGM’s strategic vision to promote initiatives in the broader blockchain and digital asset sphere has culminated in the creation of this regulatory regime.As a global first of its kind, the DLT foundations regulation sets a precedent for blockchain foundations, Web3 entities, DAOs and traditional foundations seeking to enhance their operations through DLT. This forward-thinking framework is poised to provide a unified solution for digital asset-related activities and the broader foundations landscape, fostering transparency and efficiency.Establishing governance structuresThe ADGM DLT foundations regulation represents an effective means to establish governance structures while acknowledging the imperative decentralization characteristic of the industry. This regulatory development followed a robust public consultation process, actively involving stakeholders and industry participants to gather feedback and refine the regulations.In the realm of digital assets, ADGM continues to push towards taking leadership in regulatory standards, providing an attractive environment for Web3 startups. Ahmed Jasim Al Zaabi, Chairman of ADGM, emphasized the pivotal role that the DLT Foundations Regime plays in shaping the future of digital asset development. According to a press release on PR Newswire, Al Zaabi stated:“Abu Dhabi is rapidly emerging as the destination of choice for global players at the forefront of digital asset development. The introduction of the DLT Foundations Regime marks a revolutionary step forward, reinforcing ADGM’s commitment to a proactive approach rooted in extensive cross-industry dialogue and collaboration with various stakeholders. The new regime serves as a driving force for positive change in the digital assets sector. By transforming the blockchain and Web3 landscape, we are moving towards a future characterised by setting global benchmarks with enhanced transparency and efficiency.”Nurturing Web3 innovationOver the course of the past 12 months, the authorities in Abu Dhabi, alongside the United Arab Emirates (UAE) itself and other emirates such as Dubai, have been allocating resources towards developing the right conditions for the Web3 sector to flourish. In April of this year, a legislative framework was proposed by the ADGM.Recent months have seen a plethora of digital asset sector firms gain trading approval within the emirate. These included virtual asset firm M2, Standard Chartered digital asset subsidiary firm Zodia Markets and Laser Digital, the digital assets subsidiary of Japanese financial services conglomerate Nomura.By way of its DLT foundations regulations, the ADGM is attempting to go beyond simply creating a set of rules. The aspiration is to strive towards a future where the blockchain and digital asset industry operates within a transparent, efficient and globally respected framework. As blockchain technology continues to gain traction, Abu Dhabi’s ADGM is positioning itself to play a role in driving these advancements.