Potential of Blockchain Technology in Korean Journalism

Hong Kong Embraces Web3 Development with Dedicated Task ForceHong Kong has taken another step towards embracing the potential growth of the crypto industry by creating a dedicated task force for Web3 development.Led by Financial Secretary Paul Chan, the task force, which was announced on Friday, consists of 15 non-official members, including university professors and entrepreneurs. As official members, government officials and financial regulators are involved.Financial Secretary Chan expressed his optimism about blockchain technology, the foundation of Web3, highlighting its potential for innovation through features such as disintermediation, security, transparency, and cost-efficiency. The task force envisions Web3 as a solution to challenges faced in sectors like finance, trade, business operations, and everyday life.Photo by Shubham Dhage on UnsplashMulti-agency participationNotable members of the task force include the CEOs of the Hong Kong Monetary Authority (HKMA), Securities and Futures Commission (SFC), and Hong Kong Exchanges and Clearing. Their presence demonstrates the commitment of top finance regulators in Hong Kong to the Web3 initiative. Additionally, Yat Siu, chairman of metaverse firm Animoca Brands, joins as a non-official member, bringing diverse perspectives to the table.Financial Secretary Chan emphasized Hong Kong’s ambition to become a significant player in the Web3 space. The city-state aims to support companies and nurture local talent within the ecosystem. This initiative aligns with Hong Kong’s long-term vision for crypto development, as set out in a policy document released last October. It’s the latest in a whole series of measures officials have taken since then to further that crypto ambition.Strategic positioningBy establishing the Web3 task force, Hong Kong seeks to position itself as a prominent hub for crypto activities. The city-state recognizes the potential economic benefits and job opportunities associated with the crypto industry. The task force’s diverse composition reflects the government’s intention to collaborate with stakeholders from various sectors and gather insights from academia, government bodies, and industry experts.Furthermore, the task force aims to create a supportive environment for digital asset development. Hong Kong’s financial regulators have been actively working on regulatory frameworks to ensure investor protection and promote market integrity.While it is still in the early stages, global crypto exchanges like Huobi, OKX, and BitMEX have recently expressed their intentions to establish a presence in Hong Kong. This indicates growing interest in the city-state’s crypto potential and validates the government’s efforts to position Hong Kong as a welcoming and conducive environment for crypto-related businesses.With its commitment to fostering digital asset development, Hong Kong demonstrates a forward-thinking approach to leverage the benefits of blockchain technology and position itself as a thriving ecosystem for Web3 innovation.The collaboration between academic, governmental, and regulatory stakeholders sets the stage for the Chinese autonomous territory to capitalize on the opportunities presented by the evolving crypto space. Hong Kong’s proactive stance and the establishment of the Web3 task force reinforce its position as a global financial hub and a front-runner in embracing emerging technologies for future economic growth.

Korean Crypto Market Outpaces Stock Exchange Amid Bitcoin ETF OptimismThe anticipation is building around the potential approval of BlackRock’s Bitcoin exchange-traded fund (ETF) in the United States. As the world’s largest asset manager is anticipated to obtain a green light, Bitcoin’s price has surged by more than 17% just this week, capturing the keen interest of investors.Photo by Kanchanara on UnsplashCrypto surpassing stocks in daily trading volumeIt’s worth highlighting the surge in the Korean cryptocurrency market, where the daily trading volume has recently eclipsed that of the Korean Composite Stock Price Index (KOSPI).According to local news outlet Maeil Business Newspaper, on October 24, KOSPI recorded a trading volume of KRW 7.83 trillion ($5.8 billion). Yet, in a 24-hour span from 9 a.m. (KST) on October 23 to 9 a.m. on October 24, the combined trading volume of the top five Korean cryptocurrency exchanges reached KRW 8.44 trillion.Breaking it down by exchange, Upbit had a 24-hour trading volume of KRW 6.97 trillion, followed by Bithumb with KRW 1.36 trillion, Coinone with KRW 87.6 billion, Korbit with KRW 18.8 billion, and Gopax with KRW 2.2 billion.Retail investors leaving the stock marketThe surge in the Korean crypto market is largely due to retail investors shifting their focus away from the Korean stock market. This move comes in response to challenges the stock market has been grappling with, such as monetary tightening in the US and increased volatility stemming from the Israel-Hamas war.

Sega Curbs Interest in ‘Boring’ Blockchain GamingJapanese video game behemoth Sega Corp., once an advocate for blockchain gaming, is reevaluating its involvement in the sector as the global crypto industry continues to face challenges.In a recent interview with Bloomberg, Shuji Utsumi, the Co-Chief Operating Officer of Sega, revealed that the company will withhold its major franchises from third-party blockchain gaming projects to protect the value of its content.Photo by Pat Krupa on UnsplashHalting blockchain game developmentAdditionally, Sega is temporarily halting the development of its own blockchain games. These decisions mark a significant shift for the 60-year-old gaming studio, which previously joined other industry players in exploring the potential of blockchain technology to enhance game appeal. However, the recent collapse of the digital currency market has dampened enthusiasm for such initiatives.While Sega withdraws from blockchain gaming, it does plan to allow external partners to utilize its lesser-known characters, such as those from Three Kingdoms and Virtua Fighter, for non-fungible tokens (NFTs). NFTs serve as digital asset ownership certificates.Sega’s intention to venture into the NFT community drew criticism from some gamers who viewed crypto technology as environmentally harmful. Utsumi emphasized the importance of creating enjoyable gaming experiences and expressed his skepticism about the “play-to-earn” model associated with blockchain games, describing such games as “boring.”Reservations on Web3 adoptionIn addition to the uncertainties surrounding blockchain gaming, Utsumi expressed reservations about the adoption of Web3 technology in Sega’s upcoming “super game” initiative. This initiative involves the release of high-budget online multiplayer games starting in 2026. Sega is currently assessing whether the technology will gain traction in the gaming industry before committing to its implementation.Sega’s strategic shift reflects a broader cooling trend relative to the Web3 concept, which implicates an internet built on blockchain technology. Despite attracting significant investments in the past, Web3 has faced criticism and diminishing interest from major players like Ubisoft.However, Sega will continue to offer its lesser franchises to several blockchain games that will be announced later this year. The company also plans to invest hundreds of millions of yen in related projects, as the technology still holds value in enabling the transfer of characters and items between different games. Sega remains open to further involvement in blockchain gaming as the technology matures.Big brand cautiousnessUtsumi acknowledged that the views expressed by blockchain advocates may seem extreme to many in the video game industry. Nevertheless, he recognized the importance of risk-takers who pioneer new technologies, referring to them as the “first penguins” who should not be underestimated.Sega’s cautious approach reflects the need to strike a balance between innovation and maintaining the core aspects of enjoyable gaming experiences, while closely monitoring the evolution of blockchain and Web3 technologies in the industry.It’s also likely that the gaming sector’s most coveted brands will remain cautious on blockchain gaming while newcomers like Animoca Brands can better afford to be the risk takers that drive blockchain gaming forward. Earlier this week, Animoca’s Co-Founder Yat Siu said that he was bullish where blockchain gaming is concerned.