South Korea sanctions North Korean tech workers for cybercrimes and crypto theft

Audius Achieves Token Listing On India’s CoinSwitchAudius, a decentralized music streaming platform which is attempting to cut intermediaries out of the music business, took a major leap forward in the Asian market on Wednesday, scoring a listing of its native $AUDIO token on Indian crypto exchange, CoinSwitch.Photo by Studio Art Smile on PexelsIn announcing the token going live on the platform CoinSwitch encouraged platform users to “trade $AUDIO today and support independent artists worldwide.” Founded in the United States in 2018 by Stanford University graduates Forrest Browning and Roneil Rumberg, the project launched its $AUDIO token in 2020.The token commenced trading on top tier global crypto exchanges shortly afterwards. In terms of listings on Asian exchanges, $AUDIO can be traded on DigitFinex Global, Bitrue and BingX in Singapore, HitBTC and Hotbit in Hong Kong and Tokocrypto and INDODAX in Indonesia. While it is already listed on WazirX, India’s largest crypto exchange by trading volume, the project will welcome another Indian listing via CoinSwitch given a market that ranks sixth in the world in terms of crypto ownership, with a backdrop of a population of 1.4 billion.Web3 with a Web2 UXAudius has taken a different approach than most other crypto projects. From the outset, its founders have focused on giving the platform the look and feel of a Web2 streaming service. Audius decided to embed its non-custodial wallet Hedgehog into the user login process.The strategy has been to make the UX as customer friendly and intuitive as possible in order to aid user on-boarding. There have been trade-offs in taking this approach and with that, the project advises users to keep only a small amount of the $AUDIO token within the Hedgehog wallet. When Hedgehog was launched in 2019, a project blog post proclaimed that “decentralization doesn’t have to come at the expense of user experience.”TikTok integrationEarlier this year, the Web3 streaming service integrated TikTok, allowing platform users to create accounts simply by linking their TikTok profiles. Additionally, the integration meant that users could share their Audius songs in the TikTok videos they produced.In late January, the $AUDIO token jumped 70% in a matter of hours once it became known that Coinbase planned to list the token on January 26. While a CoinSwitch listing is a significant milestone for the project in the Indian market, naturally it doesn’t compare with the volume that a global exchange listing on Coinbase can bring. At the time of publication, the $AUDIO token was trading at $0.29.For its part, CoinSwitch has experienced many of the ups and downs that this nascent industry could possibly deliver. In August 2022, five properties associated with the crypto exchange were searched by India’s Enforcement Directorate on the grounds of suspected contravention of India’s Foreign Exchange Management Act (FEMA).Founded in 2017 by Ashish Singhal, Govind Soni and Vimal Sagar Tiwari, the firm has attracted investment and backing from Andreessen Horowitz, Coinbase Ventures, Tiger Global Management and Paradigm.

Korean Financial Authority Installs Report Center to Counter Crypto ScamsThe Korean Financial Supervisory Service (FSS) announced today that it has installed a dedicated report center aimed at combating investment fraud related to virtual assets. From June 1 through to the end of this year, the report center will run a reporting campaign.Photo by Katrin Hauf on UnsplashSurge in crypto fraud casesWhile the National Assembly is working on the legislation of the Virtual Asset User Protection Bill, there has been a surge in fraudulent activities exploiting regulatory loopholes. According to the FSS, the number of reported cases of crypto fraudulent activities in Korea surged by 67.2% last year, reaching 199, compared to the previous year’s 119.In a proactive response to this rising concern, the FSS has set up a report center, designed to staunch the escalating tide of fraud.Coordinated efforts against financial fraudUnder the guidance of the Anti-Financial Fraud Office, the report center will operate collaboratively with other relevant departments, such as the Consumer Finance Department and the Asset Management Examination Department. Reports can be filed either via landline or through the FSS website.Swift actions on detected fraudAs part of its policy, the FSS will swiftly inform investigative agencies, like the prosecutors’ office, if an issue raised via the report center is deemed severe or contains specific facts that necessitate further scrutiny.The financial watchdog emphasized its commitment to issuing financial consumer warnings whenever potential fraud is detected and poses a risk to investors. This strategy is designed to safeguard investors and impede the spread of damages.

As the South Korean capital market eyes the burgeoning potential of security token offering (STO) businesses, Koscom, a financial IT company, is increasingly coming into focus among securities firms for its dedicated STO platform. With four securities companies already in partnership, Koscom is actively seeking to expand its collaboration network further. Koscom is a technology subsidiary of Korea Exchange, the country’s only securities exchange operator.More partnerships with securities firmsAccording to its press release published a few weeks ago, Koscom inked a memorandum of understanding (MOU) with Yuanta Securities Korea, the South Korean branch of the Taiwanese retail broker. Through the partnership, the two entities pledged to collaborate on developing blockchain platforms and discovering new STO projects.  The MOU between Koscom and Yuanta is the fourth STO-related partnership Koscom has inked with a securities company. Koscom's other three brokerage partners are Kiwoom Securities, Daishin Securities and IBK Securities. With over four decades of experience in managing ledgers for brokerages, Koscom is highly skilled in constructing technical infrastructure for the capital market. As the operator of its own blockchain platform, this fintech company has been developing blockchain technology and acquiring relevant expertise.Photo by Shubham Dhage on UnsplashSecurity token issuance and distributionThe necessity for blockchain-based STO platforms provided by companies like Koscom for brokerages stems from regulations set forth by the Korean financial authority. The Financial Services Commission (FSC) mandates that the issuance and distribution of security tokens must be carried out by separate entities. This regulatory framework necessitates a platform that enables securities firms to connect and interact with each other. Koscom offers a joint STO platform designed to streamline transactions between brokerages, improving cost-effectiveness. In light of this, the financial IT company concentrates on developing such platforms with the aim of laying a solid foundation for the emerging STO market. According to local media outlet Etnews, Koscom has set its sights on completing the platform development within the first quarter, with plans to address additional requirements from brokerages subsequently. Striving to expand its network of partnerships to include companies both large and small, Koscom recognizes that a more diverse array of participating firms can enhance the efficiency of token issuance and distribution, which would in turn accelerate the adoption of STOs. Koscom’s strategy offers its partners an opportunity to test its STO infrastructure before the relevant legislation governing the management of security tokens is passed at the National Assembly. Regarding this development, Kim Sung-hwan, Head of the Digital Business Division at Koscom, said, “Koscom’s joint STO platform is emerging as an alternative method for brokerage firms to venture into the security token business. Factors such as costs and workforce requirements have made it difficult for many firms to proceed independently.” He added, “We will provide full technical support for our platform users, allowing them to focus on identifying reliable underlying assets for security tokens.”