Korea Blockchain Week to Expand Online Next Year

3AC Founders Vow to Donate Future EarningsThe co-founders of the Singapore-headquartered bankrupt crypto hedge fund Three Arrows Capital (3AC) have publicly committed to donating their “future earnings” to creditors who suffered losses during the fund’s dramatic collapse.Kyle Davies and Su Zhu made this groundbreaking announcement during a candid Twitter Spaces session hosted by Mario Nafwal, aiming to establish a “shadow recovery process” parallel to the ongoing liquidation proceedings.Photo by Josh Appel on UnsplashBelieving in karmaDavies explained that their intended donations would be separate from the formal recovery process, designed to supplement any reimbursements that creditors might receive through the liquidation proceedings. While acknowledging that some early creditors have already been made whole, he emphasized the founders’ unwavering belief in the concept of “karma.”They see their act of giving back as a way to balance the scales and provide an avenue for creditors to potentially recover their losses.Creditor skepticismHowever, these noble intentions expressed by Davies and Zhu have been met with skepticism from the crypto community and the very creditors they seek to assist. Teneo, the liquidator overseeing the 3AC liquidation, responded to Davies’ comments by expressing disappointment in the founders’ lack of cooperation during the ongoing process. They stressed that the founders should prioritize engaging in the court-ordered activities rather than making promises about future earnings from a new venture.Acknowledging concerns about optics, Davies addressed questions surrounding the launch of their new crypto exchange, Open Exchange (OPNX), while their previous company undergoes liquidation. He stressed the inherent connection between OPNX and the creditors, suggesting that the success of their new entrepreneurial endeavor would ultimately benefit those affected by the collapse of Three Arrows Capital.OPNX success requiredOPNX, the newly launched Dubai-based trading platform, is specifically designed to facilitate the trading of bankruptcy claims. Since its announcement in February, the platform has garnered significant attention, boasting an impressive user base of 20 million individuals holding a collective $20 billion in claims. It is worth noting that the collapse of Three Arrows Capital resulted in the loss of $2.5 billion in customer deposits, making the success of OPNX crucial for creditors seeking redress.Davies also revealed that OPNX currently records approximately $50 million in daily trading volume, showcasing promising early traction for the platform. However, the exact mechanics of the “shadow recovery process” were left unspecified.While OPNX currently only facilitates the trading of claims from lender Celsius, the platform has ambitious plans to include claims from other high-profile bankruptcies in the near future. The list of potential additions encompasses notable entities such as FTX, Genesis, BlockFi, Voyager, Hodlnaut, Mt. Gox, Vauld, Zipmex, and even Three Arrows Capital itself.When taken at face value, the founders’ pledge to donate future earnings to creditors takes on the appearance of a significant and commendable gesture. However, doubts persist within the crypto community due to the founders’ prior actions and the ongoing liquidation process. Only time will reveal the true impact of this “shadow recovery process” and whether it will genuinely alleviate the losses suffered by creditors in the wake of Three Arrows Capital’s collapse.

Asian Firms Feature in Ledger’s Institutional Trading OfferingCrypto hardware storage device provider Ledger has recently introduced the Ledger Enterprise Tradelink network with the participation of a number of well-known Asian crypto platforms.Through its Ledger Enterprise Tradelink offering, Ledger aims to provide a robust and open trading platform specifically designed for institutional investors. The company announced its move into the institutional trading technology market via a blog post published to its website on Wednesday.Photo by Kanchanara on UnsplashMeeting institutional needsThis platform aims to meet the unique risk management and regulatory requirements of institutions seeking to participate in the cryptocurrency market.Given recent events, such as the bankruptcy of the FTX crypto exchange, market participants are increasingly seeking transparency and alternatives to traditional vertically integrated crypto exchanges. There are also concerns regarding the future of market infrastructure in light of the recent lawsuits filed by US regulators against major exchanges like Binance and Coinbase.Sebastien Badault, the VP of Metaverse & NFTs at Ledger, highlighted these concerns and emphasized the importance of addressing them. He explained that the Ledger Enterprise Tradelink network enables a seamless connection between custodians, OTC brokers, and exchanges, allowing traders to execute trades without having to hold funds on the exchange itself.This unique feature serves to minimize the risks associated with centralized exchanges. Badault further predicted that as regulations evolve, fund managers will likely be required to distribute their risk across multiple custodial partners, making the Ledger network an appealing solution.Asian partnershipsTo bring the enterprise-grade platform to life, Ledger has partnered with several prominent crypto exchanges and broker firms. These include international companies like Bitstamp, Uphold, CEX.IO, Wintermute, Coinsquare, NDAX, Damex, Flowdesk, and YouHodler. Additionally, Asian platforms feature strongly, represented by the likes of Seychelles-headquartered crypto exchange Huobi, Singapore-based platform Crypto.com, and Thailand’s Bitazza, a digital asset platform.Other participating companies comprise of Komainu, a digital asset custodian backed by Japanese financial services company Nomura, Tokyo-based institution-facing crypto finance firm, Crypto Garage and Hong Kong’s Kryptodian, a digital asset custodian.Other international partners include digital asset custodians TetraTrust and Etana. The partnership depth that Ledger has put in place with its Ledger Enterprise Tradelink product ensures that firms utilizing the network are not locked into a single custodial provider.Crypto.com President & COO, Eric Anziani, praised Ledger’s innovative Trading Operation technology, emphasizing its role in enhancing security and fostering a regulation-friendly landscape for institutional trading. The collaboration with Ledger enables Crypto.com to participate in the Ledger Enterprise Tradelink network, expanding their offerings for institutional clients and strengthening their position within the market.Ledger Enterprise offers real-time tracking of collateral balances and operational status for all participants, providing enhanced transparency and operational efficiency. Furthermore, the platform boasts zero transaction fees, making it a cost-effective solution for institutional investors, as highlighted in the press release.This initiative by Ledger aligns with the industry’s growing demand for regulatory compliance and effective risk management solutions. Consequently, Ledger’s entrance into this space marks an important milestone in facilitating institutional participation and driving further adoption of cryptocurrencies.

Chinese authorities are unveiling new strategies to expedite the integration of the digital yuan in selected districts in Beijing and Shanghai, with a separate initiative furthering cross-border use of the e-CNY with Hong Kong.Photo by Yigang Zhou on UnsplashPudong New AreaAccording to the Xinhua news agency, the Chinese authorities have introduced an extensive reform initiative for Shanghai's Pudong New Area, which is scheduled to span from 2023 to 2027. This five-year plan, issued by the Chinese Communist Party Central Committee and the General Office of the State Council, aims to position the Pudong District as a leader in modernization. The reform plan places a strong emphasis on the pilot implementation of the digital yuan across various sectors in Pudong. As part of the plan, Pudong will be granted new authorities to evolve into an international hub. Key aspects of the reform include the integration of digital yuan into trade settlement, e-commerce payments, carbon trading and green power trading. This move is expected to standardize and broaden the application scenarios of the digital currency. Beijing's ‘Digital Yuan Adoption Demonstration Zone’Simultaneously, a member of the Beijing Municipal Committee and Hong Kong Professionals Association president, Fung Kwok-yau, has advocated for the swift progress of Beijing's "Digital Yuan Adoption Demonstration Zone." In a recent interview, Fung suggested expanding the digital yuan's application by installing e-CNY terminals in local stores at popular tourist destinations, malls and shopping districts. Fung acknowledges challenges in promoting the digital yuan, including late entry into the contactless payment market, high user acceptance barriers and difficulties in sustaining subsidies. To overcome these challenges, Fung recommends that culture and tourism departments take the lead in popularizing the concept of central bank digital currency (CBDC) and educating the public on digital yuan usage. To encourage small and medium-sized merchants already using digital yuan terminals, Fung proposes providing incentives to help consumers understand and use the currency. He emphasizes the need for a regular promotion mechanism and measures such as electronic consumption coupons to boost citywide adoption. PBoC cross-border e-CNY pilotIn a related development, the People's Bank of China (PBoC) plans to expand its cross-border digital yuan pilot in Hong Kong. Deputy Governor Xuan Changneng expressed the intention to deepen the cross-border e-CNY pilot to enhance convenience for businesses in both Hong Kong and mainland China. According to a social media post from Chinese news outlet Caixin, the PBoC will collaborate closely with the Hong Kong Monetary Authority (HKMA) to introduce new policy measures, including financial services and cooperation initiatives to drive CBDC adoption. Areas of cooperation between PBoC and HKMA include providing support for institutions participating in the pilot, increasing convenience for digital yuan users, expanding the number of Hong Kong-based banks handling e-CNY and exploring new digital yuan-powered cross-border remittance services for micro-payments. The goal is to develop digital yuan services that align more closely with the habits of Hong Kong residents and promote interoperability with Hong Kong payment systems. The PBoC aims to make further progress in key scenarios such as cross-border e-commerce and education.