Hong Kong firms move forward with staking services

The Seoul Metropolitan Government has launched a new initiative designed to help South Korean fintech firms expand into global markets. According to a Nov. 18 press release, the city and its blockchain partner, Catalyze Research, will utilize the XRP Ledger (XRPL), Ripple Labs’ public blockchain, to provide technology-focused mentorship and facilitate networking with overseas partners.Photo by Kanchanara on UnsplashFunding for global growthParticipating startups are eligible to receive up to $200,000 each, with the total funding pool capped at $1.8 million. The Seoul government anticipates that this initiative will assist early-stage ventures in establishing a meaningful presence in the global marketplace. Selected participants will receive mentorship from Catalyze Research on entering the blockchain ecosystem via the XRP Ledger, refining business models, and developing multichain strategies. The program is open to applicants working in a variety of specific sectors, including blockchain payments, asset tokenization, cross-border transfers, decentralized identifiers (DIDs), decentralized finance (DeFi), and regulatory technology. Beyond the core business training, Seoul is offering technical workshops that allow participants to explore complex topics such as XRPL-based issuance, liquidity configuration, fee optimization, and security architecture in greater depth. Follow-up support programs will continue to assist participating ventures after the initial phase, offering help with investor relations and jurisdiction-specific regulatory consulting. Pilot projects with overseas partners are also planned to further support company growth. The capital’s move to back crypto ventures follows its recognition in the Global Financial Centres Index (GFCI), produced annually by the London-based think tank Z/Yen and the China Development Institute (CDI). In the latest report released in September, Seoul ranked eighth in fintech among 135 cities. Price swings amid XRP ETF debutsWhile the city pushes to grow the country’s blockchain sector, XRP, the native asset of the XRP Ledger, has faced market headwinds. According to CoinMarketCap data, the token’s price dropped more than 15% over the past week amid a broader market downturn. This decline came even after the Nov. 14 launch of XRPC, a Canary Capital–managed ETF that is the first in the U.S. to track the spot price of XRP. Subsequently, the Bitwise XRP ETF is also set to debut on the New York Stock Exchange on Nov. 20. Amid the recent price weakness, XRP’s retail positioning offers a more nuanced backdrop. Glassnode’s Nov. 19 update estimates the average retail cost basis for the token at roughly $2.17, putting the typical holder about 61% in profit. The firm’s analysis a day earlier showed, at the network-wide level, 58.5% of the total supply in profit and 41.5% held at a loss—a structure that the firm said reflected a market dominated by recent buyers and prone to volatility.

Audit Finds Excessive Pay Features on China’s e-CNY ProjectChina’s Digital Currency Research Institute, responsible for developing the digital yuan, has come under scrutiny for its excessive pay rises, which exceeded the typical limit for central government departments by eight times, according to a recent audit report. The report, released by the National Audit Office, sheds light on the inner workings of the institute, which oversees China’s widely used central bank digital currency (CBDC).Photo by Eric Prouzet on Unsplash28 percent pay risesIn 2020, employees at the institute received an average salary increase of around 28%, a significant bump compared to the typical government limit. Despite its influential role, the Digital Currency Research Institute maintains a low profile, lacking an official website and public disclosure of its payroll size, budget, and organizational structure.Since the substantial pay increases in 2020, the institute’s growth appears to have accelerated. Job postings indicate that the institute embarked on a hiring spree in the past year, with positions ranging from Beijing-based software engineers for Google’s Android mobile operating system to cloud platform engineers in Suzhou and blockchain experts in Shenzhen.While the Digital Currency Research Institute is among several government agencies flagged for financial irregularities in the audit report, it is essential to note that the institute plays a crucial role in advancing China’s digital yuan project.Ongoing trialsOver the past four years, trials of the digital yuan, known as e-CNY, have rapidly expanded. Currently, there are 26 pilot cities and 5.6 million merchants accepting the CBDC, accessible through official apps and third-party payment systems such as Alipay and WeChat Pay.Despite the progress made in trial deployments, there is no official timeline for the official launch of the digital yuan. The e-CNY has already demonstrated its utility in various contexts. For instance, in major cities like Beijing, Shanghai, and Chengdu, subway riders can utilize e-CNY as a payment option through local transport apps. Moreover, passengers in eastern Zhejiang province can now use the official e-CNY wallet app to pay for the metro, even without an internet connection.While some cities have started exploring the use of e-CNY for bank loan and utility bill payments, the overall adoption of the digital yuan remains relatively slow. The amount spent using e-CNY is still a fraction of the massive 500 trillion yuan in mobile payments made in China last year. Consumers perceive little difference between e-CNY and traditional payment channels when using popular mobile payment apps.Jiangsu Province is establishing use of the digital yuan within its education system. Meanwhile, in the eastern city of Changshu, local administrators are starting to pay civil servants in e-CNY. To encourage wider acceptance and adoption, it will be crucial to further develop the infrastructure and address the concerns of businesses and consumers.As trials continue, it is expected that the digital yuan will play an increasingly significant role in China’s financial landscape, offering new opportunities while transforming the way transactions are conducted.

Coinone Boosts Crypto Account Security with Naver Two-Factor AuthenticationCoinone, one of South Korea’s leading crypto exchanges, announced on Wednesday that it has added Naver as another channel for two-factor authentication (2FA) when signing up for an account. This move aims to enhance security and convenience for users by introducing another option for the second step of authentication in addition to KakaoTalk and one-time password (OTP) authentication.Photo by Franck on UnsplashCombatting social engineering attacks“As the popularity of investing in virtual assets is on the rise, attempts to gain unauthorized access to accounts through smishing and phishing have also increased. We hope that users can use Coinone services in a safer, more convenient manner by using Naver as an easy authentication channel,” said Cha Myunghun, CEO of Coinone.All users are required to go through 2FA when signing up for a Coinone account in order to simultaneously protect their credentials and conduct deposits, withdrawals, and transactions. Users must verify themselves with their phone number first, then once more through an additional channel like KakaoTalk, Naver, or OTP authentication.Using KakaoTalk or Naver is easy and convenient since most Koreans already have both of these apps on their phones, and it takes a relatively short amount of time to complete.Extra benefitsUsers can register for Naver authentication on both the Coinone website and the app. Once they do, they can verify themselves through the Naver app without a separate login. These users can be granted more benefits such as increased withdrawal limits, the exchange said. Those who have verified their bank accounts for storing Korean won can have a withdrawal limit of up to 500 million won (approximately $373,000).