Wemade to unveil upgraded DAO platform Wepublic in February

South Korea’s financial regulator is preparing a second major cryptocurrency bill that would expand investor protections, strengthen stablecoin safeguards, and potentially impose governance changes at the country’s largest exchanges, as domestic token projects warn that regulatory uncertainty is curbing growth. The Financial Services Commission (FSC) is drafting the Digital Asset Basic Act, a so-called “phase two” bill that follows an earlier virtual asset user protection regime which took effect in July 2024. According to Yonhap News, the bill is expected to address stablecoin risks by requiring issuers to hold reserve assets in instruments such as bank deposits and government bonds, and to deposit or place in trust at least 100% of outstanding issuance with banks or other designated custodians. It would also extend existing financial-sector rules to crypto firms in areas including disclosures, terms and conditions, and advertising. In addition, the proposal could impose no-fault liability on virtual asset service providers for losses stemming from hacks or system failures, in line with standards under Korea’s Electronic Financial Transactions Act, which governs traditional financial institutions and payment services.Photo by Timothy Ries on UnsplashGovernance dominance at exchangesA separate report by KBS said the draft bill includes measures to overhaul governance at South Korea’s four major crypto exchanges—Upbit, Bithumb, Coinone, and Korbit—which together serve about 11 million users. The FSC has raised concerns about concentrated control by founders and major shareholders, and is considering a governance framework similar to that applied to alternative trading systems (ATS) under Korea’s Capital Markets Act. That could include limits designed to prevent any single shareholder from holding too much control, capping controlling stakes at around 15% to 20%. Under Korea’s current Capital Markets Act, an ATS is generally barred from holding more than 15% of voting shares, including those held by related parties, with limited exceptions allowing stakes of up to 30%. If similar limits were applied to crypto exchanges, the changes could affect Dunamu, the operator of Upbit. Dunamu Chairman Song Chi-hyung holds a stake in the mid-20% range and, under the proposal as described, could face pressure to sell roughly 10% of his holdings. The proposal could have implications for the deal, as Dunamu is pursuing a merger with Naver Financial through a comprehensive stock swap. While the bill’s broad outlines are taking shape, regulators are still working to narrow differences over stablecoin rules, and the final proposal is expected to be submitted to the National Assembly next year. Key unresolved issues include eligibility requirements for stablecoin issuers, whether to establish an interagency consultative body during the licensing process, initial capital thresholds, and whether a single entity should be allowed to both issue and distribute stablecoins. The core dispute centers on who should be allowed to issue stablecoins. The Bank of Korea is said to favor limiting issuance to consortia in which banks hold at least a 51% stake, while the FSC is believed to oppose writing a mandatory bank ownership threshold into law, arguing that such a requirement could limit broader participation by technology firms. ‘Kimchi coin’ listings stall amid cautionEven as policymakers push ahead, regulatory uncertainty is curbing growth among South Korean blockchain projects. News1 reported that Upbit listed only one token from a domestic project in 2025, out of 54 tokens added for trading since the start of the year—the native token of Story, a peer-to-peer intellectual property network powered by blockchain and co-founded by Korean entrepreneur Lee Seung-yoon. Upbit also removed 10 tokens during the period, seven of which were so-called “kimchi coins,” a colloquial term for tokens originating in South Korea or developed by Korean teams. Industry participants attribute the removals to increasingly risk-averse behavior by exchanges amid regulatory uncertainty, which can complicate promotional efforts and trust-building while constraining early-stage liquidity. TradFi players seek crypto integrationsWhile local token projects face headwinds, interest from traditional financial institutions appears to be picking up. Chosun Biz reported that Mirae Asset Financial Group is considering an acquisition of Korbit, with its non-financial affiliate Mirae Asset Consulting seen as a potential buyer of shares from major shareholders NXC and SK Planet. Industry analysts estimate the deal could be worth up to 140 billion won ($97 million). The group’s founder, Park Hyeon-joo, has said he is developing a strategy to bridge traditional and digital assets, arguing that it is time to prepare for the next wave of financial innovation. In payments, EBN Industrial News reported that BC Card has signed a memorandum of understanding (MOU) with U.S.-based crypto exchange Coinbase to test USDC payments in South Korea. The pilot would integrate BC Card’s QR payment system with wallets on Coinbase’s Base blockchain to assess whether USDC can function as a viable payment method at local merchants. 

Korean Crypto Exchange Alliance Reveals Standardized Regulation GuidelinesThe Digital Asset eXchagne Alliance (DAXA), consisting of five leading cryptocurrency exchanges in South Korea, today revealed standardized regulation guidelines, according to a report by news media The Asia Business Daily.Photo by Nick Fewings on UnsplashStandardized guidelinesTwo important documents — the standardized internal control framework and the code of conduct and ethics — were released by DAXA today. These documents were developed based on data provided by financial investment firms and member exchanges. Reviewed by DAXA members and advisors, this documentation represents a significant milestone as it is the first of its kind to address the unique characteristics of the crypto industry. The establishment of unified rules and regulations through the collaborative efforts of the member exchanges stands as a commendable achievement.Internal control frameworkThe internal control framework consists of five parts, encompassing a total of 68 articles. These parts cover general provisions; governance of virtual asset service providers (VASPs); organization and standards for internal control; compliance officers and internal control system management; and compliance details.Code of ethicsThe code of conduct and ethics comprises five chapters with 24 articles. These chapters focus on general provisions, customer ethics, employee ethics, corporate management ethics, and societal ethics.DAXA Vice Chairman Kim Jae-jin expressed optimism that these guidelines will serve as a valuable reference for all VASPs, fostering the development of a fair, trustworthy, and globally competitive crypto market.DAXA’s websiteLast month marked the launch of DAXA’s official website, and their YouTube channel has been active since January. The alliance is made up of five member exchanges: Gopax, Bithumb, Upbit, Korbit, and Coinone. At the helm of the alliance is Chairman Lee Sirgoo, who concurrently serves as CEO of Dunamu — the company operating Upbit, the largest cryptocurrency exchange in the nation.

While Russia had previously ruled out adding Bitcoin to its national reserves, the latest soundings from officials within the world’s largest country call for the creation of a crypto fund to hold and manage confiscated cryptocurrencies. According to a report published by Russian state-owned news agency TASS, Evgeny Masharov, a member of the Civic Chamber of the Russian Federation, has put forward a proposal for the formation of a special fund that would hold and manage cryptocurrencies that had been confiscated as the proceeds of crime by the Russian authorities.Photo by Artem Beliaikin on UnsplashMasharov told TASS: "Cryptocurrency confiscated in criminal proceedings should work for the benefit of the state. For these purposes, a special fund can be created, on the balance sheet of which these cryptocurrencies would be located, the capitalization of which will significantly increase over time.” In the future, Masharov proposes that the funds could eventually be used for educational, social and environmental projects. Enabling asset confiscationMasharov supported moves to define digital assets as property within the realm of criminal procedure legislation previously. Since 2021, legislation has been proposed to lay out a properly defined framework to enable the confiscation of such assets in criminal cases. As of last month, Russia’s Supreme Court is currently working towards establishing this. The Civic Chamber official expressed his willingness to discuss his proposal with other stakeholders such as crypto industry representatives and officials from Russia’s Federal Taxation Service. If this proposal was to be implemented, it would match a position taken in the U.S. with regard to a Bitcoin reserve. Earlier this month, U.S. President Donald Trump signed an executive order creating a strategic Bitcoin reserve which will be funded mainly by confiscated Bitcoin. Central bank resistanceRussia’s central bank has been largely opposed to the use of cryptocurrencies within Russia in recent years. Last December, central bank governor Elvira Nabiullina stated that the bank had no plans to invest in cryptocurrencies. Earlier that month, Anton Tkachev, a member of Russia’s State Duma, had put forward a proposal to establish a national Bitcoin reserve. With the onset of sanctions as a consequence of the conflict in Ukraine, the Russian government has softened its position with regard to cryptocurrencies. Digital assets such as Bitcoin are now seen as a mechanism to enable cross-border trade and cross-border payments, circumventing the international banking system. It was reported last year that Russia’s central bank had changed course and with that, it was leading efforts to assist Russian companies to use cryptocurrency for international trade, bypassing Western sanctions. Earlier this month, Reuters reported that Russian oil firms are now using leading cryptocurrencies such as Bitcoin, Ethereum and Tether in oil trade deals with their counterparts in China and India. In another development earlier this month, it emerged that the central bank is now allowing a limited level of crypto investment by investors. Faced with sanctions and current geopolitical realities, it’s understood that Russia had been considering the use of Bitcoin for reserve purposes, but for the time being, it has opted to concentrate on adding gold and the Chinese yuan to its sovereign wealth fund.