BOCI Partners with UBS in Hong Kong on First Tokenized Notes

Lambda256 and CryptoLab partner to pioneer privacy-enhanced blockchain technologyLambda256, the Blockchain-as-a-Service (Baas) arm of South Korea’s largest crypto exchange Upbit, has signed a business agreement with private AI technology developer CryptoLab to develop and commercialize technology that can enhance the privacy of data on blockchain networks, according to local news outlet Kyunghyang Games on Friday (KST).Photo by GuerrillaBuzz on UnsplashAdvanced privacy measuresThe two firms will work together to develop various blockchain-based service platforms, such as a token securities offering (STO) platform, that will be equipped with strengthened privacy protection technology for data stored on blockchains.Innovation unleashedLambda256 has been leveraging its Web3 developer platform Luniverse to work with a plethora of businesses, including those in the security token industry, to help them build, deploy and manage blockchain networks. Some of its solutions include DID, a blockchain-based identity management system; Trace, a blockchain verification and tracking system; and Point, a blockchain-based loyalty rewards solution.CryptoLab, on the other hand, has developed in-house homomorphic encryption technology that can encrypt data while allowing that data to still be operated on. The firm’s CEO, Chun Jeong-hee, who is also a professor at Seoul National University’s Department of Mathematical Science, was selected as a Fellow of the International Academy of Cryptography (IACR) this year in recognition of his contributions to the development of the field of cryptography.“By combining Lambda256’s blockchain platform with our homomorphic encryption technology, we look forward to exchanging our technology and capabilities,” said Shin Jun-bum, CTO of Cryptolab. Jason Lee, CISO of Lambda256, also reaffirmed the companies’ joint goal of solving data privacy issues that occur in the blockchain space. He added that they would take this opportunity to bring blockchain to fields like finance and healthcare that are sensitive to data privacy.

Korea’s Internet Agency Encourages More Blockchain Tech Adoption to Overcome Crypto WinterVirtual asset and blockchain technology needs to be more broadly adopted to overcome crypto winter, an official from the Korea Internet and Security Agency (KISA) said at the 2023 Blockchain Meetup Conference on Wednesday.©Pexels/Helena LopesUser-friendly apps and regulatory supportPark Sang-hwan, the leader of the blockchain technology promotion group at KISA, encouraged the blockchain industry to develop user-friendly applications to give positive impressions, adding that blockchain-based apps should be faster and efficient to meet users’ expectations.He also said the blockchain industry needs regulatory support, explaining that regulatory issues can hinder the growth of the industry’s growth.KISA’s support for blockchain industryAccording to Park, the quasi-government internet agency introduced a business quality control system to offer advice on legal, technological, and business issues to companies, as well as to provide them with business problem-solving support. KISA will continue driving the development of key blockchain technologies, create new business plans for Web 3.0, and devise a mid- to long-term roadmap for research and development, he said.Blockchain projects in KoreaDuring his speech at the conference, Park presented several KISA-led public sector projects that will unfold this year, as reported by the Korean economics newspaper Hankyung. They include blockchain-based online voting systems, the establishment of digitally formed national licenses, and the verification of personal identification.Endeavors in the private sector were also revealed, including NFT-based concert tickets, oil waste disposal systems, and identification using soulbound tokens.

Former PBOC Governor: CBDC Development Must Focus on SecurityZhou Xiaochuan, a former governor of the People’s Bank of China (PBOC), has issued a call for China to prioritize security and vigilance against potential misuse as it advances the development of its central bank digital currency (CBDC), known as the e-CNY.Photo by FLY:D on UnsplashSafeguarding the CBDC ecosystemXiaochuan made this appeal during the Digital Finance Forum, which was held in Beijing last week. He emphasized the necessity of safeguarding the CBDC ecosystem.The PBOC has been actively engaged in trials and innovations related to the e-CNY, even rolling out a pilot application in January 2022. The digital yuan’s journey, however, comes with significant responsibilities, particularly in terms of security and prevention of misuse.Thwarting potential abuseZhou acknowledged that in the realm of finance, security has always been a paramount concern, and this sentiment couldn’t be more accurate when applied to the realm of digital currency. He stressed that, as technology costs continue to decline and systems become more user-friendly, the risks associated with misuse also decrease. In this context, it becomes imperative for China to adopt stringent security measures and robust regulatory frameworks to thwart any potential abuse.Zhou underscored the illicit utilization of cryptocurrencies and stablecoins in facilitating various activities, including arms trafficking and drug trade. He pointed out that addressing these issues necessitates a concentrated effort, making it clear that a proactive approach to prevention is essential.The development of the e-CNY has seen impressive progress, with pilot projects initiated in 2019 and later expanded to 26 locations across 17 provincial-level cities and regions, including major metropolitan areas like Beijing, Shanghai, Shenzhen, and Suzhou.Last month another official from the PBOC spoke to the need to make the e-CNY accessible in all retail payment scenarios within China at a trade forum in Beijing. Digital yuan use is also being broadened to facilitate its availability in the special Chinese administrative area of Hong Kong.Proposing two-tier systemZhou advocated for a two-tier system in the operation of e-CNY, a structure already in place. The People’s Bank of China presides over the first tier, responsible for issuance and regulation, while the second tier comprises commercial institutions such as commercial banks, internet platforms, and telecommunications operators.This dual-layered design promotes dynamic evolution within the digital currency landscape, enhancing service quality and fostering innovation through healthy competition. Zhou stressed the importance of exploring cross-border transactions, an area that entails both technological advancements and policy orientation.Hong Kong has actively embraced e-CNY for cross-border payments, advancing into the second phase of technical testing and preparing to incorporate it into its predominantly local payment system.On a related note, Lu Lei, the deputy administrator of the State Administration of Foreign Exchange (SAFE), highlighted the programmable features of CBDCs as tools for enhancing monetary policy effectiveness.While current CBDCs are positioned as M0 currencies, strictly currency in circulation plus commercial bank reserve balances, he proposed that central banks could evolve them into M2 currencies. M2 is a measure of money supply that incorporates checking deposits and other forms of deposits that are readily convertible to cash, alongside cash itself.