Galaxia Moneytree Forms Aviation Asset Tokenization Consortium

Coinone’s recent addition of USDT/KRW trading pair expected to reduce Kimchi premiumCoinone, a major South Korean cryptocurrency exchange, listed USDT, a stablecoin pegged to the US dollar on the platform’s Korean won-denominated market on Thursday (local time). Its listing price was KRW 1,289.Tether Limited, the company behind USDT, asserts that their stablecoin is “backed 100% by Tether’s reserves.” These reserves comprise a variety of real-world assets such as U.S. Treasuries, overnight reverse repurchase agreements, corporate bonds and precious metals. According to CoinMarketCap, USDT’s market capitalization stands at $89 billion, ranking it third in the cryptocurrency market, just behind Bitcoin and Ethereum.Photo by DrawKit Illustrations on UnsplashFirst to list USDT/KRW trading pairDespite the significance of USDT in the cryptocurrency market, Korean exchange users have faced the limitation of not being able to purchase the stablecoin using Korean won, although these exchanges did offer markets denominated in USDT. This limitation has prompted Koreans to turn to foreign cryptocurrency services for acquiring USDT. With Coinone’s latest move, the platform has become the first to facilitate USDT/KRW trading among the nation’s five fiat-to-crypto Korean exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax.Regarding this development, Kwon O-hoon, Managing Partner at the law firm Cha and Kwon, told local news outlet Decenter that there seem to be no particular legal concerns with the crypto exchange’s engagement in USDT transactions. This perspective stems from the absence of stablecoin regulations in the country.Reducing the Kimchi premiumAccording to Decenter, crypto experts anticipate that the introduction of USDT/KRW trading will help in reducing the Kimchi premium, a term referring to the discrepancy in cryptocurrency prices on South Korean exchanges compared to those in foreign exchanges.For instance, according to data from CoinNess, the average price of BTC on Korean exchanges is around KRW 51,177,250. This is about 2.34% higher than its average price on foreign exchanges, which stands at KRW 50,005,909. This difference means that users on Korean exchanges need to pay an additional KRW 1,171,340 to buy one BTC, compared to what they would pay on international platforms.However, the newly added trading pair will streamline transactions between exchanges, making it simpler for investors to engage in arbitrage. This ease of transfer is expected to lead to more balanced pricing across different markets, reducing the Kimchi premium.In light of this development, Jo Dong-hyeon, CEO of blockchain company Undefined Labs, said various institutions and blockchain projects will likely find USDT increasingly useful as a store of value, given USDT facilitates easy transfers between different exchanges.

Upbit Operator Doubles Down on ESG ManagementDunamu, the operator of the popular Korean crypto exchange Upbit, issued a press release on Friday stating it will donate 500 million KRW (~$385,000) to the Korean Red Cross in support of recovery efforts for the recent wildfire damage in Gangneung, a city located east of Seoul.©Pexels/Matthias ZomerESG managementThis is part of its efforts to double down on its environmental, social, and governance (ESG) management, according to Korean economic media Biz World.Wildfire recovery effortsLast year, Dunamu also donated 3 billion KRW (~$2.3 million) to Hope Bridge, a disaster relief association in Korea, to support the swift recovery from wildfires that ravaged areas near the cities of Uljin and Samcheok.Metaverse and NFTs for plant conservationUnder the slogan “climate change action,” Dunamu is engaging in various projects. Last month, the exchange operator launched the 2nd foRest campaign in collaboration with the Korea Forest Service and the Korea Forest Welfare Institute.The purpose of this campaign was to encourage citizens to participate in recovering wildfire-affected areas. Every tree planted in Dunamu’s metaverse platform 2nd Block led to the actual planting of two trees in the ravaged areas. More than 30,000 trees were planted through the project, and moreover, 10,000 of the participants were rewarded with coupons that can be exchanged for saplings.Dunamu has also made endangered plant conservation efforts with the Korea Arboreta and Gardens Institute. Upbit NFT Marketplace showcased ten endangered plants in NFT editions.Veronica Star Light, one of the editions revealed during the first airdrop, sold out within a day, reflecting its popularity. Dunamu will use the fees collected from these transactions to establish a fund for endangered plant conservation.Protecting plant diversityDunamu Chairman Song Chi-hyung said the company has been studying various means to utilize its technology and resources to contribute to society, and that it will continue to make multifaceted efforts to protect plant diversity.

Hong Kong Setting High Bar on Crypto RulesLucy Gazmararian, a Fintech Advisory Group member of Hong Kong’s Securities and Futures Commission (SFC) and founder of crypto venture firm Token Bay Capital has said that the standards for Virtual Asset Service Providers (VASPs) in Hong Kong are incredibly high.©Pexels/Brayden LawThe Securities and Futures Commission (SFC) has established these strict guidelines as they want the crypto industry to adhere to the same compliance standards as traditional financial firms.Gazmararian made the comments in discussion with Cointelegraph on the fringes of the Hong Kong WOW Summit. Although the bar is set high, Gazmararian maintains that it is not without good reason. The SFC’s approach is to ask VASPs to apply the same standards that existing financial institutions such as huge banks and asset managers must comply with.Short term challengesAccording to a consultation paper released by the SFC on February 20th, licensed VASPs may serve retail investors, but the standard of investor protection measures imposed needs to be considered. Additionally, Anti-Money Laundering (AML) and Know Your Customer (KYC) policies were also discussed.While these high standards may benefit the industry in the long run, Gazmararian believes they may pose challenges for the crypto industry in Hong Kong over the short term. She explained that many crypto businesses are in the startup phase and have funding but not huge amounts. Therefore, complying with the framework may incur significant costs. Gazmararian mentioned the need for local VASPs to have insurance, independent assessment reports, and store crypto in cold storage. It is important to note that these costs may prevent some startups from entering the market, which may have consequences on the industry’s growth in Hong Kong.The Token Bay Capital founder believes that with a solid regulatory framework in place, more well-capitalized financial firms will be willing to help promising startups get off the ground. In her opinion, the companies that receive a license will be upholding the most stringent standards.Ambitions to be global crypto hubThe SFC has encouraged individuals, corporations, and crypto firms to review the 361-page consultation paper and provide feedback. The securities regulator wants these entities to share their views and point to things that may have been missed. According to Gazmararian, the SFC is “absolutely focused” on getting everything right, so they are seeking input from a wide range of sources.Submissions for feedback on the consultation paper closed on March 31. Hong Kong has made significant strides in recent months to establish itself as the world’s next crypto hub. According to a March 20 statement by the Secretary for Financial Services and the Treasury, Christian Hui, more than 80 digital asset firms have expressed interest in establishing a presence in Hong Kong over the last few months. This interest is a testament to the growing importance of the crypto industry and the favorable environment that Hong Kong is creating for its growth.