Solana faces rising phishing threats in South Korea amid growing adoption

FD International joins hands with Lbank to expand global blockchain ecosystemFD International, the parent company of blockchain consulting and IT company Blockchain Innovation, announced on Friday (local time) that it has signed a memorandum of understanding (MOU) to collaborate with the global cryptocurrency exchange LBank.Photo by Shubham Dhage on Unsplash“Blockchain-related industries are growing exponentially worldwide, and we hope to create an ecosystem that can have a positive impact on many people through our well-prepped collaboration with LBank,” said FD Group CEOs Jeon Da-seul, Lee Seo-yeon, and Jeon Sol.Lbank’s global presenceEstablished in 2015 in Indonesia, LBank currently boasts a user base of over 10 million people and a daily trading volume of up to $1.5 billion. It currently supports over 50 fiat currencies, several major cryptocurrencies like Bitcoin and Ethereum and a wide variety of payment methods including Apple Pay. It also operates branches in other countries like the U.S. and Canada.Navigating regulatory landscapesFD International has been working on creating Travel Rule solutions for Korean exchanges such as Bithumb, Coinone and Korbit in accordance with relevant regulatory guidelines like the Act on Reporting And Using Specified Financial Transaction Information. The Travel Rule refers to the Financial Action Task Force’s (FATF) Recommendation #16, which outlines that VASPs must share certain personal information about customers — including names and account numbers — when facilitating crypto transactions that exceed a certain amount.The firm has also been leveraging its expertise in the blockchain and IT fields to help accelerate major companies such as Klaytn and Everscale. Notably, the company adapts its solutions and technological capabilities to regulatory trends, such as the Financial Services Commission’s (FSS) regulations on security token offerings (STOs) and the European Union’s Markets in Crypto-Assets Regulation (MiCA) legislation.

Thai Central Bank Collaborates With Singapore’s 2C2P on CBDC PilotThe Bank of Thailand is set to commence a pilot project for a retail central bank digital currency (CBDC) within a regulatory sandbox later this month.Three participating fintech firmsThat’s according to local media, with reports suggesting that three payment providers will participate in the project, which is expected to involve up to 10,000 users and run until August.The scheme will involve two Thai banks, Bank of Ayudhya (Krungsri), Thailand’s fifth largest bank, and Siam Commercial Bank. Singapore-based payments service provider 2C2P will also collaborate with the Thai central bank on the CBDC initiative. 2C2P is a global payments platform which helps businesses to accept payments securely online, on mobile, and in-store. Each organization has developed an app exclusively available to selected users, encompassing a digital wallet and a QR code scanner.Krungsri plans to engage up to 2,000 staff members and approximately 100 merchants in the project, focusing on locations around the bank’s headquarters. Furthermore, the project will expand to include the Ploenchit branch.Photo by Florian Wehde on UnsplashMaintaining relevanceBanks are having to embrace the need to adapt to the eventuality of developments like CBDCs as, depending upon how they’re implemented, they could render some banking products obsolete. Sam Tanskul, the Managing Director of Krungsri Finnovate, a division of the Thai banking business that focuses on strategic investments, expressed the need for the bank to establish a distinct strategy for differentiating the retail CBDC from its existing PromptPay mobile payments service.Siam Commercial Bank’s pilot project will operate in a similar manner to Krungsri’s, involving staff members and nearby merchants as participants. The Bank of Thailand has emphasized that the project aims to facilitate learning rather than serve as an official pilot launch. At present, the central bank has not disclosed any official plans to implement a CBDC.Wholesale and retail CBDCsThe Bank of Thailand commenced the development of a wholesale CBDC back in 2018. It has actively participated in various projects such as the Bank for International Settlements’ (BIS) mBridge cross-border payment initiative and the Project Inthanon-Lion Rock collaboration with the Hong Kong Monetary Authority (HKMA).In a move to foster the growth of the digital token market, Thailand waived corporate income tax and value-added tax for companies issuing investment tokens in March. While this decision is expected to result in an approximate loss of $1 billion in revenue for the country, it is projected that investment tokens will generate $3.7 billion over the next two years, as stated by a government spokesperson.The Bank of Thailand’s forthcoming retail CBDC pilot project is one of a plethora of such projects being pursued throughout the Asia-Pacific region. In Japan, the Bank of Japan recently completed the second phase of a proof of concept project relative to its CBDC, with the project now progressing to phase three. Last month, it emerged that the Bank of Korea is collaborating with Samsung Electronics relative to its CBDC project. Meanwhile, India is progressing further in trialing its CBDC, while China is further along the development curve than all others in that respect.

The Chinese autonomous territory of Hong Kong is moving closer towards the issuance of stablecoin licenses, while 30 kilometers away on the Chinese mainland, the authorities in Shenzhen are warning against stablecoin investment scams. Hong Kong has set Aug. 1 as the effective date for its incoming Stablecoin Ordinance. Firms such as JD.com and Ant Group, an affiliate company of Alibaba Group, are understood to be interested in seeking licensing. Photo by ダモ リ on UnsplashSingle-digit license issuanceIn a recent interview with Chinese language newspaper Ming Pao, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, outlined that stablecoin licenses are likely to be issued in 2025 following the passing of the Aug. 1 effective date, although he indicated that the number of licenses issued will remain in single digits. Hui hopes that stablecoins can address some of “the difficulties and pain points in the real economy,” like cross-border payments involving volatile local currencies. The official said that stablecoins can reduce transaction costs and facilitate cross-border transactions when based on fiat currencies and serving as effective payment tools. Yuan-based stablecoinsHui stated that the issuance of a stablecoin in Hong Kong which is based on the sovereign currency of another jurisdiction would only be permitted following “discussions with the relevant authorities."  It’s understood that the aforementioned Chinese e-commerce firms have been lobbying government for the approval of offshore yuan-based stablecoins. Last month, the Governor of the People’s Bank of China, Pan Gongsheng, acknowledged that stablecoins are disrupting global payments infrastructure. However, mainland China still has a mining and trading ban in place in relation to crypto, despite previous speculation that the country would open up to crypto. Hui expressed the view that where a stablecoin implicates another sovereign currency, there are additional risk factors that would have to be taken into account. Exploiting uninformed view of stablecoinsMeanwhile, 30 kilometers from Hong Kong, the authorities in Shenzhen have issued a warning to members of the public highlighting that scammers are exploiting the public’s uninformed view of stablecoins as a guise through which to lure victims into investment scams. They asserted that scammers are using new concepts, in this case stablecoins, for hype in an effort to peddle illegal fundraising, gambling, fraud and money laundering schemes.The Shenzhen Municipal Task Force Office for Preventing and Combating Illegal Financial Activities asked the public to report such schemes “engaged in illegal fundraising in the name of investing in stablecoins,” in order to enable the authorities to crack down on the illicit activity. The authorities added: "We urge the general public to remain rational in their investment decisions, avoid blindly trusting extravagant promises, develop a correct understanding of money and investment, stay alert to financial risks and avoid falling victim to scams." Last month, JD.com took to Weibo to warn the public that fraudulent JD stablecoins were being offered by scammers at a time when the company has yet to issue a stablecoin.