Security token interest gains momentum in Korea ahead of election

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).

Dunamu, the operator of South Korea’s leading crypto exchange Upbit, announced today that it launched a new crypto price tracking service, Bitcoin-Ethereum Duo Index (Duo Index). The news was reported by the local media outlet Etoday.  The service tracks the two most prominent tokens, Bitcoin and Ethereum, each being the top performer and the runner-up in terms of market capitalization in the crypto asset market. It is a strategy index that equally weights Bitcoin and Ethereum, with their holding ratio updated to 1:1 every month. The weightings of the two cryptocurrencies in the index are subject to an adjustment factor, which is based on their prices. The BTC-ETC Duo Index is currently available on the Upbit Cryptocurrency Index (UBCI) website. Photo by Markus Winkler on UnsplashThe Federal Reserve’s approval of spot Bitcoin ETFs in January has drawn significant attention from many investors, driving up the prices not only of Bitcoin but also Ethereum. Dunamu explained that this heightened interest surrounding Bitcoin and Ethereum is the reason behind its launch of the Duo Index. New tool to boost crypto portfolio’s performance Referencing the Duo Index can help investors estimate their own crypto assets portfolios and boost their performances based on the indicators it offers, including the winning rate of the two coins combined.   The current winning rate of the Duo Index stands at over 58%, which is three percentage points higher than that of the Upbit Market Index (UBMI), which tracks not only Bitcoin and Ethereum but also other altcoins. The high winning rate of the Duo Index demonstrates the bullish sentiment surrounding the two top coins. A Dunamu official stated that the company will continue to keep up with the crypto market trend and further release other strategy indices that would serve the emerging needs of the investors.  

Japan’s Ministry of Economy, Trade and Industry announced on Friday that it has approved a revision to the Industrial Competitiveness Enhancement Act, with the aim of broadening strategic investment opportunities. According to a local report from crypto publication Coinpost, this move would open avenues for venture capital (VC) firms to invest in projects exclusively issuing cryptocurrencies. Pending parliamentary deliberationWith cabinet approval secured, the revised bill will now undergo introduction and deliberation in the current session of the Diet, Japan's parliament. If passed, the amendment could pave the way for VC funding of Web3 startups in exchange for crypto assets. The Ministry highlighted that the amendment aligns with objectives to foster new businesses and industrial investment, with a particular focus on empowering Japan's economy through support for medium-sized companies and startups. Reports of Japan's intention to ease regulations for VC firms investing in crypto startups first emerged in September.Photo by Manuel Cosentino on UnsplashStablecoin frameworkJapan has further work to do to implement a comprehensive overall framework for digital assets. A move by the Japanese Financial Services Agency (FSA) earlier this month to implement measures designed to guard against unlawful crypto transfers is a case in point. The measure doesn’t appear to account for knock-on effects on the peer-to-peer (P2P) transactions market. However, its stance on crypto regulation is best characterized by efforts to establish a robust legal framework for stablecoins and digital assets. The nation has positioned itself as a global leader in stablecoin regulation, signaling plans to embrace Web3 technologies while maintaining stringent measures to protect users. Japan's stablecoin regulations, while providing clarity, present challenges for issuers, especially regarding profitability in a low-interest rate environment. Compliance with requirements such as maintaining 100% of assets within Japan's trust accounts poses operational hurdles for yen-based stablecoins. Recent developments indicate industry players' efforts to navigate regulatory requirements. Mitsubishi UFJ Financial Group, Japan's premier banking conglomerate, has engaged with stablecoin issuers to explore leveraging its blockchain platform. Web3 hope amid economic difficultiesJapan’s economy has seen better days. Last week, the bitcoin-yen trading pair saw bitcoin reach a record high valuation against the yen. New technologies like Web3 are seen as a potential mechanism for the East Asian country to improve its economic performance. In July of last year, Japanese Prime Minister Fumio Kishida emphasized the country’s commitment to nurturing the Web3 sector within Japan. Last year, Yudai Suzuki, the founder of a Tokyo-based Web3 incubator, suggested that the country could rediscover its past prowess at the forefront of innovation and technology by embracing blockchain and Web3. Japan's regulatory approach appears to be shifting to accommodate such sectoral growth and development. Last July, the Japan Blockchain Association (JBA) called on the government to address an issue within the Japanese tax code that was hampering the industry. That tax reform was subsequently implemented in December. This latest initiative, too, appears to underscore Japan's commitment to fostering innovation and economic growth through enabling further investment into emerging Web3 enterprises.