Velo token gains momentum across Southeast Asia's crypto landscape

Lotte’s NFT marketplace partners with upcycling brand NiUl for membership NFTsLotte Data Communication, an affiliate of South Korean retail conglomerate Lotte Group, issued a press release on Wednesday (local time) to reveal that its NFT marketplace, Kottonseed, has issued new non-fungible tokens (NFTs) in partnership with upcycling brand NiUl whose name stands for “Nothing is Useless.”Photo by MSA-90 on PixabayPlastic lids to stylish keychainsNiUl recycles discarded plastic lids, transforming them into vibrant, stylish key ring pendants known as NiUl rings. NiUl has successfully sold over 2,000 pendants across a mix of online and offline platforms, with 300 kilograms of plastic lids donated by supporters. In a strategic move to broaden its reach, the company has been partnering with diverse firms and ramping up its donation initiatives, targeting environment and fashion-conscious millennials and Generation Z consumers.In their latest venture with Kottonseed, these pendants have been digitized into membership NFTs, which come with a suite of benefits like a special edition rope strap and discounts on products. Some lucky members may even get the opportunity to be involved in creating a NiUl ring. These membership NFTs are being released in limited numbers and are up for grabs starting today on NiUl’s page on Smart Store, an e-commerce platform of popular search engine Naver.NFTs in five colorsThe NFTs are offered in five distinct colors, each named after the sky’s varying appearances: “Post-rain Clear,” “Blue Sky,” “Sunset,” “Aurora” and “Night Sky.”A spokesperson for Lotte Data Communication expressed that the company sees great value in participating in upcycling initiatives with NiUl through their NFT marketplace, Kottonseed. They are keen on pursuing enjoyable and varied collaborations to support NiUl’s socially beneficial endeavors. Moreover, Lotte is actively exploring ways in which NFTs can contribute to environmental, social and governance (ESG) objectives.

South Korea’s ruling Democratic Party has set up a new task force to accelerate the creation of a clear regulatory framework for stablecoins, aiming to unify competing legislative proposals ahead of government guidelines expected in October. According to Etoday, the nine-member group, chaired by Representative Lee Jung-moon of the National Policy Committee, is composed of lawmakers from three key parliamentary committees. Its primary objective is to consolidate the party's position on digital asset policy and coordinate with the Financial Services Commission (FSC) to establish a definitive rulebook for the burgeoning sector. Lee stated that the task force would work to harmonize multiple stablecoin bills already circulating within the party, noting that there was mounting pressure from both regulators and the private sector. He explained that government agencies had urged swift legislative action, while financial institutions and exchanges preparing to launch won-pegged stablecoins were waiting for regulatory certainty.Photo by SC Jang on UnsplashRegulatory debate over capital standardsA central point of contention for the task force will be establishing appropriate capital requirements for stablecoin issuers. Current proposals vary in scope, with suggested thresholds ranging from 500 million won (approximately $358,000), a figure intended to encourage fintech innovation, to as high as 5 billion won (about $3.58 million) to prioritize investor protection. The committee is tasked with striking a balance between fostering market growth and ensuring financial stability. Seoul's initiative reflects a broader global movement toward formal oversight of fiat-backed digital currencies. The U.S. passed its GENIUS Act for stablecoins in July, while the EU has implemented its Markets in Crypto-Assets (MiCA) regulation. Similarly, Japan amended its Payment Services Act in 2023 to restrict stablecoin issuance to licensed banks and registered financial firms. Former White House crypto advisor’s inputThe push for clear rules has drawn keen interest from industry leaders. Speaking at Korea Blockchain Week 2025 in Seoul, Bo Hines, chief executive of Tether USAT, stressed the regulatory clarity provided by the GENIUS Act in the U.S. According to ZDnet Korea, he noted that his company's new dollar-backed token, USAT, is designed for full compliance with U.S. law, featuring one-to-one reserves and audits by top-tier accounting firms to attract institutional investors. Hines, a former digital assets adviser at the White House, clarified that USAT is intended to serve the regulated U.S. market, complementing Tether’s flagship product, USDT, which has a global user base exceeding 500 million. He also discussed Tether’s view of South Korea as a key market, pointing to the significant USDT trading volumes there. Hines encouraged the country to adopt comparable stablecoin standards and expressed optimism that it would move toward a more open and efficient global financial network. With the FSC’s guidance approaching, the Democratic Party’s task force is working to reconcile differing legislative proposals. The resulting framework will shape the pace at which stablecoins move from pilot projects to an established part of South Korea’s financial system. 

HashKey Gears Up to Offer Trading Service to Retail TradersHashKey is gearing up to launch its services to retail traders in Hong Kong with the intention of offering them Bitcoin and Ether trading products initially.The Hong Kong-based digital asset management platform received full licensing approval from the local regulator, the Securities Futures Commission (SFC), earlier this month. It’s anticipated that the platform will launch to retail on August 28.That’s according to a report from a local media source earlier this week. Financial publication Investing.com stated: “General investors in the period can only trade Bitcoin (BTC) and Ethereum (ETH), because these two currencies currently account for most of the trading volume in the market.“It’s worth noting, however, that investors will be subject to a cap, permitted to allocate only up to 30% of their net worth into the realm of cryptocurrencies while utilizing the platform.Photo by Traxer on UnsplashServing retail clientsIt’s a significant milestone for both HashKey and the regulator, given that Hong Kong has been making huge efforts to further the development of digital asset innovation within the Chinese autonomous territory over the course of the past twelve months. Hashkey, alongside brokerage and exchange business OSL (also successful in obtaining a license), has been collaborating with regulators from an early stage in the lead-up to both receiving full licensing.HashKey got to this point by focusing on two pivotal licenses offered by the SFC. The first of these licenses, known as Type 1, paved the way for HashKey to initiate a virtual asset trading platform, aligning seamlessly with the regulatory framework laid out under Hong Kong’s securities laws. The second license, Type 7, empowers the crypto platform to furnish automated trading services to both institutional and retail clientele.Nurturing digital asset innovationHong Kong has maintained a resolute focus on cultivating a crypto-friendly environment within its borders in 2023. Echoing this sentiment, Financial Secretary Paul Chan asserted the government’s and regulatory bodies’ determination to incubate a robust crypto and fintech ecosystem throughout the year.By March, over 80 crypto enterprises signaled their intent to establish a presence in Hong Kong, with several major players in the crypto industry among them. In April, the Hong Kong Monetary Authority (HKMA) issued a call to banks, urging them to extend their services to cryptocurrency companies.Banking remains a difficulty in Hong Kong for crypto businesses despite the HKMA’s efforts. However, in the case of both HashKey and OSL, both are being banked by Hong Kong’s largest virtual bank, ZA Bank.In May, the HKMA unveiled a comprehensive licensing framework tailored for crypto platforms, imposing a deadline of June 1 for compliance. As August rolled in, a select few crypto platforms clinched the green light to offer crypto trading services to an eclectic client base encompassing both retail and institutional participants.This regulatory framework, designed to safeguard the interests of investors, is playing a large part in Hong Kong’s recent success in developing the sector. In this particular instance, it will mean that retail traders will be granted access to Bitcoin and Ethereum exclusively. This curtailed selection provides a good starting point for retail trading, and it’s likely that we will see HashKey’s trading offering being extended to cover additional digital assets as soon as local regulators permit it.