OSL raises $300M to finance expansion

Celebrating a Decade of Crypto in South Korea: Experts Convene to Chart the FutureThe MK Virtual Asset Conference, an event held in Seoul yesterday to celebrate the 10th anniversary of South Korea’s cryptocurrency industry, convened experts, politicians, and stakeholders to discuss the future of blockchain and digital assets.The conference was hosted by Maeil Business Newspaper and its blockchain subsidiary Mblock, and sponsored by cryptocurrency exchange Korbit, the Korean Securities Association, and the Korea Derivatives Association. It served as a valuable opportunity to evaluate the current state of the crypto market and explore solutions for pressing challenges.Photo by Ciaran O’Brien on UnsplashInevitable rise of blockchainOne of the distinguished speakers at the event highlighted the inevitable rise of blockchain technology. Kim Yong-beom, CEO of Hashed Open Research, the research arm of Seoul-based crypto venture capital firm Hashed, said, “Blockchain is the antithesis of the modern financial and capital system. While traditional finance possesses its own merits, it also carries substantial transaction fees and is confined within national boundaries. It is only natural that such a counterforce has emerged to address these issues.”He continued, “Given that traditional finance properly responds to blockchain technology’s rise and overcomes its limits, blockchain may lose its competitive edge. However, if traditional finance fails to do so, blockchain will not be easily dismissed.”CEO Kim also highlighted the third section named “Blueprint for the Future Monetary System” of the Bank of International Settlements’ 2023 Annual Economic Report, which was published in June. The report states, “The BIS Innovation Hub, in partnership with central banks around the world, stands at the forefront of experimentation with CBDCs and tokenization.” According to Kim, the traditionally conservative financial institution, which had previously been skeptical about blockchain-based distributed ledger technology, has now shifted its position to be more accepting of blockchain.Importance of institutional investorsDuring the conference, an academic underscored the importance of allowing institutional investors to enter the virtual asset space. Kang Hyoung-goo, an assistant professor in the Department of Finance at Hanyang University Business School, pointed out that the crypto market, when primarily driven by retail investors, tends to favor volatile assets over stable ones. Due to this inclination, more individual investors are attracted to exchanges where speculative trading is a frequent occurrence. This dynamic creates a vicious cycle, he explained.Defining digital assetsOn a different note, Lee Han-jin, a lawyer at Kim and Chang, one of the largest law firms in the country, emphasized the crucial need to establish a legal definition of digital assets. In Lee’s view, digital assets exist in the form of data on the blockchain, setting them apart from traditional assets. He argued that without a legal definition outlining the nature of these assets, they could potentially devolve into entities that mislead the public, lacking both legal reliability and trustworthiness.Political voicesPoliticians also took the stage to share their thoughts. Back Hye-ryun, a Democratic Party of Korea member, expressed in her congratulatory speech her commitment to protecting virtual asset users through legislation. Kim Jong-min, another lawmaker from the same party, underscored the unstoppable nature of the blockchain trend. Yun Chang-hyun, a lawmaker of the ruling People Power Party, mentioned that while Bitcoin couldn’t establish itself as a key currency in an anarchic manner, stablecoins and central bank digital currencies (CBDCs) are now positioned to fill that role.Regulatory considerationsMeanwhile, Kim So-young, Vice Chairman of the Financial Services Commission, stressed the ongoing uncertainty surrounding the societal impact of cryptocurrencies and how governments should oversee them. He emphasized that the Korean government aims to establish a balanced framework to facilitate the responsible development of digital assets. Furthermore, he highlighted the necessity of collaborating with major economies due to the global nature of virtual assets.

While the digital assets space moves at a blistering pace, the Asia Pacific (APAC) region is on the brink of a substantial regulatory transformation, with a focus on tokenization as we enter 2024.Photo by CHUTTERSNAP on UnsplashContinued regulatory focusThat’s according to Rahul Advani, Ripple’s Singapore-based Policy Director for the Asia-Pacific (APAC) region. The Ripple Labs Executive expressed his thoughts as part of a series communicated by the company last week on social media, emanating from some of its top tier executives. This shift comes amid growing interest in tokenized assets within and beyond traditional financial markets. In setting out his thoughts, Advani reflected on the APAC region’s regulatory focus on achieving clarity for crypto in 2023. Throughout the year, there has been an emphasis on consumer protection, retail investor safeguards, market integrity and business conduct requirements. This regulatory momentum is expected to continue into 2024, particularly concentrating on enhancing retail protections. Shift towards tokenizationThe Ripple Policy Director highlighted tokenization, which converts assets into digital tokens, as an item that is experiencing increased adoption. Notable collaborations, such as Iota’s partnership with Fireblocks to streamline asset tokenization, highlight its relevance in both crypto and traditional finance. The United Kingdom’s venture into fund tokenization further exemplifies this cross-industry trend. Ripple itself has been moving further towards real-world asset (RWA) tokenization. In September, an influential pseudonymous account on X underlined how Ripple was preparing itself to get further involved in asset tokenization. The account stated: “#Ripple now owns properties that can build the infrastructure for exchanges, companies, wallets and apps to connect to fiat rails, banks, trusts, retirement plans, etc., to tokenize real world assets and hold them in safe, compliant ways.”In May the company collaborated with the Hong Kong Monetary Authority (HKMA) on a pilot program with the objective of showcasing an RWA tokenization solution. APAC to advance CBDC and stablecoin developmentIn the stablecoin sector, where digital assets are pegged to stable values, APAC is positioned to lead in regulatory efforts, according to the Ripple executive. While some regions are still formulating stablecoin regulations, Advani envisions more APAC jurisdictions providing the necessary regulatory clarity to foster innovation while ensuring consumer safety. In the broader context, Advani anticipates more focused efforts towards the development and implementation of central bank digital currencies (CBDCs), emphasizing the need for a shift from speculative hype cycles. He wrote: “In the coming year, we also foresee a regional trend that involves a more focused effort on developing CBDCs. Stablecoins will continue to be a regulatory priority, with an emphasis on ensuring a high degree of value stability.” The forecast underscores the dynamic regulatory landscape in APAC, where regulators must delicately balance fostering innovation, safeguarding investors and maintaining market stability. Striking this balance will be a defining aspect of the regulatory narrative in 2024. Advani’s thoughts were offered by Ripple alongside those of some of his colleagues at the company, such as the enterprise blockchain firm’s APAC region Managing Director Fiona Murray. These predictions from Ripple executives collectively offer insights into the evolving regulatory landscape and industry dynamics as we approach 2024.

At the World Trade Organization’s (WTO) 13th Ministerial Conference (MC-13) in Abu Dhabi, a consortium of major global institutions including distributed ledger project IOTA came together to ink a landmark pact aimed at enhancing digital trade, including the tokenization of real-world assets. The agreement, termed the Teaming Agreement, signifies a collective effort to propel digital trade forward, emphasizing the creation of an open, non-profit and inclusive digital infrastructure for trade data sharing. The initiative involves IOTA’s recently-formed Abu Dhabi-based IOTA Ecosystem DLT Foundation.Photo by Belinda Fewings on UnsplashCapital pledgeThe Foundation has pledged an investment of $10 million towards early-stage startups focusing on digital trade and the tokenization of real-world assets (RWAs). These investments, to be unveiled publicly over the next few weeks, will support TradeTech or trade finance technology ventures and provide assistance to startups utilizing IOTA through an accelerator program. The signatories to the Teaming Agreement include esteemed organizations such as the World Economic Forum (WEF), the Institute of Export and International Trade, the Tony Blair Institute for Global Change (TBI), the IOTA Foundation, TradeMark Africa and the Global Alliance for Trade Facilitation (GATF). This collaboration brings together a diverse range of expertise and resources, blending tech and trade proficiency to streamline supply chains and customs procedures. More efficient cross-border tradeThe primary objective of the agreement is to foster collaboration and information sharing across global supply chains, with the aim of reducing barriers and enhancing inclusivity in international trade. By leveraging digital infrastructures, the coalition aims to minimize the time and cost associated with cross-border trade, thus promoting greater participation in global commerce. The timing of this agreement is particularly pertinent, given the multitude of challenges facing global supply chains. Threats such as attacks on shipping routes and the potential rise of protectionist policies underscore the necessity for enhanced information sharing and cooperation across trade networks. Trade Logistics Information Pipeline (TLIP)At the core of this initiative lies the Trade Logistics Information Pipeline (TLIP), a public global trade infrastructure developed by TradeMark Africa in collaboration with the IOTA Foundation. Leveraging open-source technology, TLIP facilitates seamless information exchange in international trade, promoting transparency and inclusivity while empowering participants to retain control over their data. The implementation of TLIP is expected to address challenges such as document loss, information discrepancies and fraud, thereby fostering a more efficient and secure global trade ecosystem. Commenting on the development, IOTA Co-Founder Dominic Schiener stated:"By investing in the future of TradeTech, we are not just facilitating smoother trade transactions; we are laying the groundwork for a more interconnected and efficient global trade ecosystem. Our collaboration with leading organizations through the TLIP is a testament to our commitment to innovation and excellence in this field." In a separate positive development for the IOTA project on Feb. 29, Jelle Millenaar, the co-founder of Impierce Technologies and a former IOTA software engineer, outlined that his company intends to develop a digital identity wallet on top of the IOTA Identity framework. The intention is to build a wallet that is compliant with digital identity regulation within the European Union.