Japanese auto-parts maker Ikuyo invests in crypto firm for stablecoin settlements

Cryptocurrency exchanges operating in the Dubai International Financial Centre (DIFC), a financial hub in the United Arab Emirates (UAE), entered a new compliance environment on Jan. 12 as updated Crypto Token rules issued by the Dubai Financial Services Authority (DFSA) came into force. The revised framework bars exchanges from offering certain digital assets.Photo by Christoph Schulz on UnsplashPrivacy tokens restricted to private walletsThe affected assets are privacy tokens like Zcash (ZEC) and Monero (XMR), although the restriction does not prevent Dubai residents from holding those coins in private wallets. The move is aimed at addressing anti-money laundering (AML) and sanctions compliance risks. The exclusion of privacy tokens reflects alignment with global compliance standards, according to Elisabeth Wallace, Associate Director of Policy & Legal at the DFSA. She told CoinDesk that bans of this kind are effectively inevitable if crypto businesses want to align with standards set by the Financial Action Task Force (FATF), given that privacy tokens are designed to obscure transaction histories and the identities of holders. The revised rules extend beyond token classifications, preventing regulated firms from deploying or providing tools designed to mask blockchain activity. These include mixers, tumblers, and other technologies that obscure transaction information. At the same time, the DFSA refined its classification of what it terms “Fiat Crypto Tokens,” limiting the category to tokens pegged to fiat currencies and backed by high-quality, liquid assets capable of meeting redemption requests under market stress. Under this definition, algorithmic stablecoins such as Ethena (ENA) would not qualify as stablecoins, though they would still be treated as cryptocurrencies. The update also alters how token eligibility is determined. Rather than maintaining a centralized list of approved assets, the DFSA now requires licensed firms to carry out their own assessments of the crypto assets they offer, document those judgments, and keep them under ongoing review. Thailand enforces crypto travel ruleComparable regulatory tightening is unfolding elsewhere in Asia. In Thailand, during a high-level meeting on Jan. 9, Prime Minister Anutin Charnvirakul said the Securities and Exchange Commission had been instructed to strictly enforce the travel rule, according to The Nation Thailand. The international standard requires crypto service providers to verify both senders and recipients in wallet-to-wallet transfers. The directive forms part of a broader government initiative to establish a national data bureau, envisioned as a centralized platform for real-time monitoring of suspicious transactions and the development of detailed financial risk profiles. In South Korea, enforcement actions have similarly intensified. According to Dailian, Korbit, the country’s fourth-largest crypto exchange, paid a 2.73 billion won ($1.9 million) fine imposed by the Financial Information Unit (FIU) under the Financial Services Commission (FSC) for violations of anti-money laundering (AML) rules. The payment followed a board decision and was made within a reduced-penalty period, allowing Korbit to receive a 20% discount. Crypto firms comprise 77% of Korean finesA broader review of penalties issued by the FIU since the disclosure of its sanctions guidelines shows that 77% of total fines were levied against virtual asset service providers (VASPs). While an analysis by Digital Asset found that only four of 95 fine cases issued since August 2023 involved VASPs, those cases accounted for a disproportionately large total of 41.8 billion won ($28.4 million). Exchanges fined to date include Delio, Hanbitco Korea, Dunamu—the operator of Upbit—and Korbit, with Dunamu receiving the largest penalty imposed by the FIU to date. The sanctions were linked to alleged know-your-customer (KYC) failures, unreported transactions involving individuals subject to warrants, and shortcomings in systems designed to detect suspicious activity. Separately, the FIU had issued disciplinary measures against Dunamu, including a warning to its chief executive and a three-month partial suspension of operations, which the company is contesting in court. The next hearing is scheduled for February. In overall fine totals, casinos ranked behind crypto firms, underscoring how enforcement against crypto intermediaries has been particularly robust, as oversight patterns continue to evolve. 

KISA Seeks Partners for Regional Blockchain Innovation Support Center ProjectThe Korea Internet & Security Agency (KISA) announced on Monday (local time) that it is working with the Ministry of Science and ICT to recruit metropolitan local governments to participate in the 2024 Regional Blockchain Technological Innovation Support Center Establishment Project, which seeks to aid the balanced development of the nation’s blockchain industry and the exploration of technology and services.Photo by Shubham Dhage on UnsplashWith the establishment of the support center, KISA plans to seek out blockchain services linked to regional industries and provide support for the development of blockchain technology and services to foster local businesses.Funding opportunities and application processThe metropolitan local governments selected for this project will be able to leverage KRW 1.8 billion (approximately $1.3 million) in government funding as well as regional expenses to pursue activities such as verifying related services and supporting blockchain and service development through incubation, workforce training, investment endorsement and legal consultations.Applications are open to 14 metropolitan local governments nationwide, excluding those in the country’s largest cities, Seoul, Busan and Daegu. Each applicant is required to form a consortium with one local information technology and communication (ICT) organization that the government invested in or funded and submit their applications through the KISA website by December 5 at 4 p.m. KST.Envisioning the future of Korea’s blockchain industryKISA President Lee Won-tae expressed his hopes that the support centers would become central hubs for blockchain technology within regions nationwide, ultimately contributing to regional economic prosperity. “KISA will continue our efforts to promote balanced regional development and nurture the blockchain industry ecosystem,” he said.

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.