Google Cloud becomes a Volunteer Validator for gaming blockchain XPLA

Korean Financial Authorities to Provide Support for Security Token MarketAmid growing calls for accelerating the growth of the emerging security token (ST) market, the South Korean government is preparing to introduce supportive measures. The security token market is powered by blockchain technology which allows fractional investment in real world assets (RWAs) such as real estate and artwork.Security tokens are digital assets that represent securities generated through a process called security token offering (STO). These tokens, backed by RWAs, can be traded similarly to traditional securities. Investors can use these tokens to obtain shares, voting rights, interest, or profits.Photo by Philip Jang on UnsplashSupport measures for security token IndustryNext month, the Financial Services Commission (FSC) will draw up support measures and policy improvement plans to bolster the nascent security token industry. An FSC representative mentioned that the agency intends to work with the National Assembly to finalize the legislation of security token-related bills by November. Furthermore, the government official said the FSC will actively seek input from industry stakeholders to formulate strategies for enhancing policies designed to promote the growth of the security token market.To align with the national objective titled “The Establishment of Digital Asset Infrastructure and Regulatory Framework,” the FSC revealed regulatory guidelines for security token issuance and distribution in February. These new guidelines are centered around the establishment of institutions responsible for account management and entities engaged in over-the-counter (OTC) trading. Subsequently, in July, lawmaker Yun Chang-hyun, a member of the National Assembly’s National Policy Committee, proposed a bill to amend the Electronic Securities Act and the Capital Markets Act with the aim of ensuring that these Acts are consistent with the new regulatory guidelines.Security token market’s growth potentialWith growing anticipation that the security token market could rival the size of the exchange-traded fund (ETF) stock market, securities firms, banks, and blockchain companies have been eager to carve out a niche for themselves since the start of the year. However, their progress has been hindered by a potentially extended period of higher interest rates in the US and the slow advancement of security token-related legislation. While these organizations tried to explore opportunities through the financial regulatory sandbox, their endeavors proved more or less fruitless. An official from a securities firm voiced concerns over the escalating costs of setting up security token infrastructure, especially with legislative delays.On this matter, the Korea Financial Investment Association (KOFIA) has emphasized the urgent need to pass security token legislation to clear up regulatory ambiguities. They’ve also called for measures to stimulate market growth, such as relaxing regulations related to token issuance and distribution and increasing investment caps.At a seminar hosted by the Korea Capital Market Institute, Ahn Hyuk, Head of the Platform Division at Korea Investment and Securities, highlighted that the rigorous review of security registration applications by the Financial Supervisory Service (FSS) might impede the security token market’s growth. Responding to this, Jang Young-shim, Head of the Corporate Disclosure Department at FSS, said that both the FSC and FSS will carefully listen to industry feedback, addressing a range of topics from regulatory relaxation to investor protection.

The South Korean government has begun the process of selling its stake in NXC, the largest shareholder of Nexon, a video game company originally founded in South Korea and now headquartered in Japan. According to the Seoul Economic Daily, which cited industry sources, the Ministry of Economy and Finance began a public sale process on June 30 for its shares in NXC. These shares were received as payment for inheritance tax from the family of Nexon’s late founder, Kim Jung-ju. In February 2023, Kim’s widow, Yoo Jung-hyun—who also serves as chair of the board at NXC—along with other family members, transferred 851,968 NXC shares to the government to settle the inheritance tax liability.Photo by Kelly Sikkema on UnsplashEarlier failed sale attemptsThe government’s latest attempt to sell the shares follows two previous efforts that failed, primarily due to high asking prices at the time. The current estimated value of the shares stands at 4.7 trillion won (approximately $3.47 billion), reflecting a 20% premium over their net value due to the rights associated with company control. However, the shares are expected to sell at a lower price, since acquiring them would not lead to actual control of the company—Kim’s surviving family still holds a majority stake in NXC. Industry insiders view Chinese tech giant Tencent as a strong contender to purchase the shares. However, Tencent recently denied reports from last month that claimed it had approached Kim’s surviving family to discuss a possible acquisition of Nexon. The company had also expressed interest in acquiring Nexon back in 2019 but ultimately did not take part in the bidding process. According to Chosun Ilbo, a Tencent acquisition is being viewed as a possibility, as the Shenzhen-based firm continues efforts to secure overseas intellectual property. One industry source noted that Tencent tends to invest in Korean game developers every three to four years. The source also mentioned that Tencent had approached Korean venture capital analysts specializing in gaming last year to gather information for a potential acquisition shortlist. If Tencent were to purchase all of the government-held NXC shares, it would become the second-largest shareholder in the company. Given its ongoing investments in the Korean gaming sector, the source said it is likely Tencent will participate in the sale process organized by the government. Nexon’s blockchain pushNotably, Nexon has been expanding its presence in the cryptocurrency space. According to data from Bitcoin Treasuries, the company holds 1,717 Bitcoin (BTC), acquired at an average price of $58,226 per coin. Beyond its BTC investment, Nexon is actively exploring blockchain technology through its Web3 IP-expansion project, NEXPACE.  This initiative features the MapleStory Universe ecosystem, along with MapleStory N, a PC-based massively multiplayer online role-playing game (MMORPG) that incorporates blockchain technology. Both projects are powered by the NXPC token. MapleStory was originally developed by Wizet Studio in 2003 and became part of Nexon when the company acquired the studio the following year. 

Haru Invest Announces Withdrawal & Deposit PauseHaru Invest, a crypto yield platform founded in South Korea and headquartered in Singapore, has announced the suspension of deposits and withdrawals on Tuesday, citing concerns over the accuracy of information provided by one of its service partners.Photo by Muhammad Zaqy Al Fattah on UnsplashInternal investigationIn a statement, the company expressed its apologies to investors and customers, assuring them that the suspension was a necessary measure taken to protect their interests. In another blog post, the company stated: “For the purpose of protecting our users’ assets under our custody, we have come to make a tough decision that any deposit and withdrawal requests will be suspended until further notice, starting from June 13, 2023, at 0:40 UTC.”Following an internal inspection process, Haru Invest conducted a thorough investigation into the matter and concluded that immediate action was required. The company stated that it is currently engaged in a fact-finding process against the operator in question and intends to take the necessary measures to address the situation.“Rug pull” denialHaru Invest emphasized that this issue does not involve a “rug pull,” a term commonly associated with scams in the cryptocurrency space. The company assured its stakeholders that it remains committed to protecting its investors and is actively working towards a resolution.Earlier reports suggested that Haru Invest employees were working remotely and that the company’s offices had closed. However, Haru Invest clarified that certain media articles contained inaccurate information regarding these claims. The company expressed regret over the misinformation and emphasized the importance of factual accuracy in reporting.According to Haru Invest’s website, the platform boasts a significant user base of over 80,000 members. It has facilitated crypto-earn payouts totaling 9.8 million and processed a staggering $2.27 billion in transactions. Haru Invest aims to provide an annual yield of 12% on most of its earn products, offering investors an attractive opportunity in the crypto space.Haru MiningIn September of the previous year, Haru Invest successfully raised $4 million in funding, valuing the company at $284 million. This achievement demonstrates the confidence investors had in the platform and its potential for growth.As recently as last month nothing looked untoward when it emerged that the company had launched Haru Mining, a collaboration with Canadian crypto miner, Pow.re. In a press release at the time, the firm explained that the move would help to diversify its products, with mining always having been an area of interest for the company.In the same month, Haru had announced an integration with Mercuryo, a London-based digital asset management platform.As Haru Invest continues to address the concerns raised by the investigation, investors and customers await further updates regarding the resumption of normal operations. The company has promised that “more details will be shortly announced on the Haru Invest Blog as soon as we get to the bottom of this.”