South Korean card issuers line up stablecoin plans as regulation nears

Korea’s Most Populated Province to Conduct Survey on Unfair Crypto TradingGyeonggi-do, the most populated South Korean province that encircles the nation’s capital of Seoul, announced today a plan to conduct a survey among its residents later this year to assess their experiences with unfair cryptocurrency trading practices.Photo by mockupbee on UnsplashRising crypto-related complaintsThe decision to conduct this survey was prompted by the increasing number of residents experiencing unfair losses from cryptocurrency investments amid an economic slowdown. Last year, the consumer counseling center in Gyeonggi-do received 448 complaints related to crypto assets, which was more than triple the number in 2020.The objective of the survey, which will run from August to November, is to gather data on residents’ perceptions of crypto assets, their methods of accessing them, the types of investment victims, and the extent of investment losses. To obtain a comprehensive understanding of the current situation, Gyeonggi-do will also analyze complaints from the past three years and establish appropriate response measures.In-depth interviewsIn addition to the survey, Gyeonggi-do plans to conduct in-depth interviews with victims by making visits and phone calls. The provincial government aims to categorize each case into major groups such as illicit pyramid schemes, suspicious investment advice channels, illegitimate fund-raising activities, market manipulations, and fake crypto sales.Legislation in progressMeanwhile, the Virtual Asset User Protection Bill is currently undergoing the legislative process in the National Assembly. Gyeonggi-do is committed to devising appropriate consumer protection policies within its jurisdiction to safeguard residents and prevent further damages until the act becomes effective. Cases of unfair trading practices uncovered during the survey will undergo legal reviews and may result in fines or lawsuits.Heo Seong-cheol, the head of the Fair Economy Division at the Gyeonggi-do government, expressed the province’s dedication to minimizing financial losses incurred by consumers due to criminal activities in the crypto industry. He said the survey will provide valuable insights to the local government, enabling them to gain a comprehensive understanding of the current situation regarding unfair crypto trading practices and take necessary actions.

India’s RBI Collaborates Internationally on Digital Rupee PaymentsIndia’s Reserve Bank (RBI) is expanding its exploration of central bank digital currencies (CBDCs) by focusing on cross-border functionality, despite its cautious approach to CBDC development.The RBI aims to experiment with various use cases for CBDCs in international payments, as it believes this can enhance the efficiency of cross-border transactions. That’s according to a report which was recently published by local media source, the Economic Times. RBI Governor Shaktikanta Das emphasized the potential benefits of quicker, seamless, and cost-effective cross-border payments. The RBI is actively engaging in dialogue with other central banks that have already implemented or are planning to introduce CBDCs.Photo by rupixen.com on UnsplashUAE collaborationIn collaboration with the United Arab Emirates (UAE), the RBI is promoting joint studies on using CBDCs for settling international payments. The partnership is driven by the high volume of remittances between the two countries, a consequence of the large number of Indian migrants in the UAE.These recent developments follow the RBI’s retail and wholesale CBDC pilot programs, which began just seven months ago. Although the retail pilot attracted 50,000 users within 60 days, the RBI remains committed to a gradual and cautious approach to mitigate potential risks.Onboarding one million CBDC usersWhile expanding the pilot program to new cities, the RBI aims to onboard one million CBDC users within the coming weeks, despite the digital rupee currently having a very low circulation level. On the wholesale side, the RBI’s pilot has shown promising results, with the digital rupee being explored for government bond transactions, money market funds, and short-term lending.RBI Deputy Governor T. Rabi Sankar emphasized the importance of exploring multiple use cases for CBDCs, including account-based CBDCs. The RBI aims to offer as many applications for CBDCs as possible while ensuring the existing National Electronic Funds Transfer (NEFT) and other systems are not disrupted.Global surge in CBDC developmentThe surge in CBDC development worldwide can be attributed to various factors. The imposition of sanctions on Russia following its invasion of Ukraine led to a significant increase in wholesale CBDC initiatives as Russia sought alternatives to bypass the sanctions.Additionally, the diminishing use of cash and the rise of dollarization and cryptocurrency adoption in local economies have motivated over 120 central banks to initiate CBDC research. These central banks are attracted by the potential benefits of financial inclusion and the opportunity to address the decline in cash usage.India has been selective in terms of the aspects of digital asset technology it wants to see further developed within its borders. At a recent conference organized by the RBI, a central bank official called on Indian banks to adopt blockchain technology. When it comes to stablecoins, the central bank is apprehensive, warning of associated risks while calling for global regulation.As India’s RBI continues its CBDC exploration, the focus on cross-border functionality underscores the growing recognition of CBDCs as a transformative tool for international payments. The ongoing collaborations and pilots demonstrate India’s level of interest in staying at the forefront of CBDC development while taking measured steps to ensure a secure and efficient transition to digital currency.

Further JPEX Controversy Due to DAO PlanDubai-headquartered crypto exchange JPEX, which has recently found itself at the center of controversy in Hong Kong, has moved forward with a plan to transition the platform into a decentralized autonomous organization (DAO).Photo by Clint Adair on UnsplashDisputed voting outcomeThe firm’s management envisages converting user assets into dividend shares, with an incentive to lock them up for two years. While the exchange claims that the majority of its users voted in favor of the plan, some users are alleging that their assets have been converted without their knowledge or consent.The company announced the outcome of its DAO Shareholder Dividend Scheme referendum on its website on Wednesday. According to JPEX, voting on the program concluded on September 28. The company alleges that 68% of users voted to support the proposed scheme.Asset conversionUnder this plan, users can convert their currently frozen assets into DAO Stakeholder dividends at a 1:1 ratio. JPEX also offers a repurchase option at 30% of the conversion price after one year and a 100% repurchase option after two years.In a prior announcement, JPEX stated that users who agreed to the scheme would receive dividends from the exchange through a new token listing, trading fees, and a distribution of JPEX Coin (JPC), the platform’s native token, in proportion to their shareholder dividends.The scheme seems to encourage users to keep their funds on the exchange, which has been grappling with liquidity issues. Previously, the exchange had taken to putting in place unreasonably high withdrawal fees to discourage users from attempting to withdraw their funds from the platform.Ongoing falloutThere has been ongoing fallout from the exchange businesses' difficulties over recent weeks. At first, a number of influencers who had promoted the exchange were arrested. Later, Hong Kong regulators suggested they were giving further scrutiny to crypto trading regulations in light of the scandal.Further arrests were made in connection with the exchange’s activities. Regulators have suggested that they would create a public listing of platforms that are actually regulated within the Chinese autonomous territory and the licensing status of those businesses. On Thursday the South China Morning Post (SCMP) reported that a further six people have been arrested in relation to the scandal, including the company’s CEO.In another report on Wednesday the SCMP had cited one platform user who maintained that her assets had already been converted to JPC tokens without her consent or prior knowledge. She and other users discovered that they could no longer withdraw their assets following JPEX’s announcement to proceed with the plan.“All of my [Tether] USDT and other cryptocurrencies are gone, all transferred to JPC,” she lamented, noting that her assets had been converted to JPC, a token with low liquidity and limited use cases. She expressed concern about the unknown price of JPC and the inability to withdraw, suggesting their assets had become worthless.On Wednesday, Hong Kong’s police and securities regulator jointly launched a crypto-focused task force aimed at combating illicit activities by cryptocurrency exchanges in the region.