Korean Lawmakers Make Progress on Virtual Asset User Protection Bill

China’s Crypto Crackdown Reveals Capital Control LoopholesChinese authorities have been stepping up their efforts to crack down on cryptocurrency-related crimes, and with that, uncovering how digital currencies are being used to bypass strict capital controls imposed by Beijing.China may be a few years into a crackdown against the use of cryptocurrencies but despite that, their use and particularly their use for illicit purposes continue. That’s according to a report on Wednesday by the South China Morning Post (SCMP).Photo by Christian Lue on UnsplashCombating capital outflowsThe rising trend of capital outflows has prompted Chinese authorities to take action. Two prominent cases illustrate the extent of these illegal activities and the value of assets seized.In Jingmen, a city in Hubei province, police disclosed details of an online gambling case involving digital currencies used to evade regulation. The case has implicated over 50,000 individuals and a turnover of billions of dollars. Although the specific virtual currency was not mentioned, authorities revealed that they had frozen multiple accounts with a combined value of $160 million.Meanwhile, in Shanxi province, police solved a money laundering case linked to 380 million yuan worth of USDT, the US dollar stablecoin issued by Tether. China’s State Administration of Foreign Exchange is responsible for monitoring cross-border capital flows. Accordingly, it has taken steps to curb these illicit activities. Late last month, it fined ten firms in order to maintain order in the forex market.Digital yuan developmentThese recent cryptocurrency cases have exposed loopholes in China’s capital control system. Crypto mining and trading have long been banned by Chinese regulators. As an alternative, China has been actively developing its own central bank digital currency (CBDC), known as the digital yuan or e-CNY. 2023 has seen a raft of measures taken by various regional administrators throughout China to bring about further e-CNY adoption.However, the ban on cryptocurrencies and the launch of the e-CNY have driven many miners and traders underground or to overseas locations such as Hong Kong, which ironically, is vying to become a cryptocurrency hub. The continued depreciation of the yuan against the US dollar has intensified capital outflow pressures.Chinese bonds sell-offInternationally, fund managers have been selling significant amounts of Chinese securities since 2021. That goes against the current regional trend which sees emerging Asian markets experiencing substantial inflows of funds during the same period, according to the Institute of International Finance.That market activity has been in response to Chinese policies and escalating US-China tensions. An Atlantic Council report highlights that international institutional investors have been net sellers of approximately 1 trillion yuan in Chinese bonds since early 2022.China’s efforts to control capital outflows and stabilize the yuan’s value face ongoing challenges, as cryptocurrency-related crimes persist. While the crackdown exposes weaknesses in the country’s capital control system, it also underscores the difficulty authorities will have globally in trying to control digital currency use.

Dunamu Helps Adolescents Tell the Difference between Blockchain and BitcoinDunamu, the fintech company operating South Korea’s leading crypto exchange Upbit, announced on Thursday that its digital finance education program designed to help foster talent in digital finance amidst the current era of digitization and fintech has come to an end.Photo by Element5 Digital on UnsplashEmpowering digital finance literacy for the future generationDubbed “Duniverse” — a portmanteau of Dunamu and universe — the program was held from May to July for 4,100 middle school students throughout Seoul, Gyeonggi Province, and Incheon. The curriculum proved to enhance their understanding and literacy in digital finance.“Digital finance education for adolescents is essential in addressing various social issues, such as preventing financial accidents and income polarization,” said Lee Sirgoo, CEO of Dunamu.The first Duniverse program was held last year, hosting some 4,800 middle school students in vulnerable areas of Gyeonggi Province. Owing to the positive response, this year’s pool has been expanded to over 7,000 first-year middle school students in Seoul, Gyeonggi Province, and Incheon. In the first half of this year alone, a total of 4,120 students from 17 middle schools participated.The program featured lessons on the technologies of the Fourth Industrial Revolution, such as blockchain, NFTs, and metaverse, as well as basic financial knowledge. A total of eight sessions were led by a team of qualified instructors with years of experience in economic education. Dunamu employees also directly contributed to the review process of educational materials, the company said.Success recognized by students and teachers alikeIn a survey conducted by Dunamu targeting 435 participants, 93.1 percent of them expressed high satisfaction, stating that their understanding of digital finance improved. This portrays a meaningful upgrade from the answers of a previous survey conducted before the start of the program, where six out of ten respondents said that they had little knowledge about digital finance.They also reported that they now understand the difference between digital asset ownership and copyrights as well as blockchain and Bitcoin, and show interest when coming across digital finance-related content in the media.School teachers also praised the program for addressing blind spots in financial education and taking a proactive learning approach. “The students were able to learn about big data, ChatGPT, and more, which is especially valuable since such education for teenagers is still lacking. I believe it will help boost their competitiveness in the future job market,” said a teacher from Goam Middle School in Yangju, Gyeonggi Province.The teachers also approved of other topics that were covered, such as financial fraud prevention, to help teenagers avoid falling victim to financial scams. Suggestions were also made to expand teacher training courses.Upcoming programThis year’s second Duniverse program will be held from August to December for 2,712 middle school students in Seoul, Gyeonggi Province, and Incheon.Dunamu has continually devoted efforts to boosting social welfare and nurturing young talent. This includes “Dunamu Next Steppers,” a hope fund for young people with multiple debts, along with supporting emerging talents and artists with developmental disabilities in their participation in NFT projects.

Xsolla and Crypto.com Collaborate on Gaming Industry Payment SolutionXsolla, a well-known American company in video game commerce, has joined forces with Singapore-headquartered crypto platform, Crypto.com, to unveil an innovative partnership.The crux of this collaboration, which was announced via a press release published on Tuesday, lies in the seamless integration of Crypto.com’s cutting-edge checkout solution into Xsolla’s Pay Station platform.Photo by Andrey Metelev on UnsplashSetting the stage for crypto paymentsThe integration marks a significant stride forward for the gaming industry, ushering in new frontiers for both game developers and players. The collaboration sets the stage for the acceptance of cryptocurrency payments and the optimization of transactions within a secure and user-friendly environment, attempting to elevate the overall gaming experience to new heights.In an era dominated by digital payment methods, this development promises players a diversified array of transaction options, harmonizing with the digital and metaverse landscapes. Additionally, this collaboration stands as a milestone for Crypto.com’s endeavor to establish a strong foothold and network within the gaming realm.Eric Anziani, President and COO of Crypto.com, highlighted the immense potential lying at the crossroads of gaming and Web3. “By joining forces with a global gaming titan like Xsolla and harnessing our collective assets and expertise,” Anziani stated, “we are concretizing this potential, empowering developers, publishers, and players to seamlessly participate and create value within the crypto economy.”Xsolla’s Pay Station, renowned for enabling in-game purchases across over 200 regions using an array of compliant payment providers, is poised for an exciting evolution with the impending integration of Crypto.com Pay. This upcoming synergy promises a wider horizon for developers and publishers, enabling them to tap into diverse player demographics and access vibrant markets and novel revenue streams.Integration of Crypto.com PayChris Hewish, CEO of Xsolla, expressed his enthusiasm for the partnership:“Our collaboration with Crypto.com is a remarkable milestone, especially with the substantial integration of Crypto.com Pay into our Pay Station platform. As the gaming landscape evolves rapidly, our adaptability becomes paramount. The integration of cryptocurrencies as a mode of payment offers game developers and players an ingenious payment solution in harmony with the global shift toward digital currencies.”The alliance has the potential to be impactful within the gaming industry, heralding a paradigm shift toward an all-encompassing and secure gaming ecosystem. Patrick Yoon, General Manager of Crypto.com Korea, added to the sentiment, expressing eagerness for the future:“Our journey with Xsolla marks a crucial stride, kickstarting a broader collaborative venture in Korea and on the global stage. We eagerly anticipate our ongoing collaboration with Xsolla in propelling payment ecosystems and digital asset adoption forward.”Blockchain and crypto-based projects have been slowly making greater in-roads into the enormous gaming market. That has manifested itself through the inclusion of blockchain within games themselves and, as in this instance, through the integration of crypto-based payments.As Xsolla and Crypto.com meld their strengths, the gaming industry braces itself for an era of inclusive and secure payment solutions with a promise to redefine the gaming experience.