Crypto enthusiasm prevails in China despite crypto trading prohibition

Korbit Report: SEC Commissioner Shares Insights on Crypto RegulationKorbit Research Center, a division of South Korea’s cryptocurrency exchange Korbit, on Monday, released a report that provides a comprehensive summary of its interview with Hester M. Peirce, a Republican Commissioner at the US Securities and Exchange Commission (SEC), which took place on August 18. The interview was conducted by Peter Chung, the head of research at Korbit Research Center.Photo by Joshua Hoehne on UnsplashKorbit’s meeting with US crypto expertsIn August, Chung made a trip to the United States, where he met with prominent figures and companies within the cryptocurrency industry to gain a deeper understanding of the ongoing institutionalization of cryptocurrencies in the United States. Through this opportunity, Korbit intends to release a series of reports that will encapsulate the valuable insights garnered during these interactions in the US.His first interviewee of the series was Commissioner Peirce, who serves as one of the five commissioners at the SEC. These commissioners are appointed by the President of the United States with the confirmation of the US Senate. To maintain political balance and impartiality, it is mandated that no more than three commissioners belong to the same political party.Peirce assumed her role as a Commissioner at the US Securities and Exchange Commission (SEC) in January 2018, following her appointment by President Trump. Before her tenure at the SEC, she held the position of Senior Counsel on the United States Senate Committee on Banking, Housing, and Urban Affairs. She is known as an advocate for technological innovation.Token safe harbor proposalPeirce earned the nickname “Crypto Mom” due to her advocacy for encouraging innovation within the cryptocurrency industry through the implementation of reasonable regulations. One notable initiative that exemplifies her perspective is the token safe harbor proposal. This proposal suggests giving blockchain network developers a three-year grace period during which they can work on building a decentralized network while being exempted from complying with the registration rules of federal securities laws, as long as certain conditions are met.During the interview, Peirce expressed concerns about recent actions taken by the SEC, which have added to the uncertainty surrounding cryptocurrency regulations. She also emphasized the need for swift legislative action to establish a framework for cryptocurrency regulation. Peirce noted that there appears to be a tendency to prioritize the classification of virtual assets over investor protection.Suggestions for KoreaAlthough Peirce hasn’t engaged in any direct interactions with Korean regulators, she suggested the Korean government optimize regulations for its own cryptocurrency industry. Her suggestion was to minimize unnecessary intervention and instead foster an environment where the sector can naturally evolve in accordance with the principles of a free-market economy.Furthermore, Peirce delved into detailed discussions on three pivotal topics: the classification of virtual assets as securities, the need for disclosure requirements, and the significance of assessing the extent of decentralization within a network.Classification of cryptocurrenciesThe Commissioner said that it is inappropriate for the SEC to contend that most cryptocurrency projects should fall under its regulatory purview. The SEC’s argument is based on the assertion that cryptocurrencies may constitute securities because they function as a medium of value exchange in fundraising activities, much like investment contracts in traditional financial markets. Despite this, she expressed optimism regarding the recent US court’s ruling on the Ripple vs. SEC case, which she believes may help rectify misconceptions surrounding the classification of investment contracts.Balancing investor protection and investor choiceMeanwhile, she expressed her viewpoint that regulations aimed at protecting investors should stay true to the disclosure principles introduced back in 1934 when the SEC was first established. However, she also argued that the SEC should avoid imposing arbitrary restrictions on investors’ choices. During the initial phases of a cryptocurrency project, there tends to be an inherent information asymmetry between crypto project leaders and individual investors. To ensure a fair investment environment, she advocated for legal mandates for disclosure. Notably, both her token safe harbor proposal and the Responsible Financial Innovation Act proposed by US Senators Kirsten Gillibrand and Cynthia Lummis incorporate such disclosure requirements.Decentralization assessmentCommissioner Peirce also approached the assessment of decentralization with a thoughtful perspective. Her Token Safe Harbor Proposal 2.0 states that after the three-year grace period, “token transactions may not constitute securities transactions if the network has matured to a functioning or decentralized network.” However, she admitted to grappling with the challenge of precisely defining what constitutes sufficient decentralization. During the conversation, she sought Mr. Chung’s perspective on this matter. In response, Mr. Chung shared that the Korbit Research Center regularly conducts measurements and assessments of the degree of decentralization for major blockchain networks every six months.Regarding the interview, Peter Chung expressed his admiration for the high-ranking official’s openness to innovation and strong communication skills. He also voiced his hope for more open discussions in Korea that could promote sustainable growth of the country’s crypto industry.

Bithumb celebrates 10th anniversary with a commitment to changeBithumb, South Korea’s major fiat-to-cryptocurrency exchange, celebrated its 10th anniversary on Wednesday (local time), as per a report by local news agency Newsis.Photo by Adi Goldstein on UnsplashFoundation for the marginalizedTo celebrate this occasion, the platform has set up a foundation with a budget of KRW 10 billion (approximately $7.6 million). The foundation is dedicated to addressing the challenges faced by marginalized individuals in the community.Bithumb has also introduced a new slogan, “Deep change for customers,” reflecting the exchange’s commitment to transformation, its top core value.Demonstrating such efforts, the platform has implemented a zero-trading fee policy for all supported cryptocurrencies since October. This policy will remain in effect until further notice. In response to this competitive move, other players in the market followed suit. Later in the same month, Korbit introduced fee-free trading for all types of tokens, and Gopax removed trading fees for four major cryptocurrencies: BTC, ETH, XRP and USDC.IPO planned in 2025Furthermore, Bithumb is striving to go public on the Korean stock market, a move partly driven by criticisms of inadequate governance transparency. The virtual asset service provider aims to conduct an initial public offering (IPO) in the second half of 2025. Through this IPO, Bithumb intends to demonstrate its corporate transparency and strengthen its position as a trustworthy exchange.Identifying and fostering young entrepreneurs is another initiative Bithumb is spearheading. The crypto exchange is processing applications from aspiring business owners for its support program. These applicants will be assessed based on their creativity and the feasibility of their business models without any restriction on the type of business area they are involved in. For this purpose, Bithumb has allocated KRW 30 billion to support startups that have been operational for less than three years.User engagement eventsA customer engagement event called the “10 Bitcoin 1/N challenge” is also underway for Bithumb users. Participants in this event will have the opportunity to equally share a total of 10 BTC. To join, customers need to send the message “Happy 10th birthday, Bithumb” to Bithumb’s KakaoTalk channel. Upon successfully sending this message, customers will receive a coupon code. After receiving a coupon code, they must apply it on the Bithumb app. The distribution of rewards is set for Dec. 11.In addition, Bithumb is set to airdrop cryptocurrencies worth up to KRW 1 million to users who have been inactive for an extended period. To participate, these users simply need to log into the Bithumb app and enter the MISS-YOU coupon code. This promotional event will last from Dec. 6 to 12, with the airdrop occurring on Dec. 18.Lee Jae-won, CEO of Bithumb, remarked that Bithumb’s 10-year journey mirrors the rapid growth and evolution of the cryptocurrency market. He emphasized that the exchange believes growth stems from embracing new challenges and transformative efforts. Lee added that Bithumb is determined to implement authentic changes to better serve its customers.

NiceHash targets Asian market through EasyMining platform launchNiceHash, a Slovenian bitcoin mining and hashpower marketplace, has launched its crypto mining platform in Asia, known as EasyMining.Cloud-based crypto miningEstablished in 2014 by two Slovenian university students, NiceHash stands as the largest cloud-based crypto-mining hashpower marketplace globally. Boasting over 250,000 daily active miners and a user base spanning 190 countries, the platform serves as a link between hashing power suppliers and consumers, operating within the framework of the sharing economy.NiceHash published a press release from Singapore on Tuesday to announce the Asian product launch. The company has already established collaborations in the region, with Singaporean mining equipment designer iPollo appearing as a featured partner on the firm’s website.Photo by Traxer on UnsplashProduct offeringAt the core of NiceHash’s offerings is the facilitation of crypto trading and global hashpower. It claims to provide an innovative and seamless connection between miners and hashpower providers. Whether it’s mining with CPU, GPU or ASIC equipment, platform users can engage in the process to earn cryptocurrencies or sell surplus computing power, presenting an opportunity for profit without the need for an extensive data center.NiceHash employs various security measures to ensure the validity and safety of transactions. These include SSL encryption, 2-factor authentication and email notifications, enhancing the security of accounts and payments. The cost of NiceHash mining is set at 0.001 BTC, offering a range of 34 mining algorithms and supporting various coins to cater to the interests of a broad user base.The firm offers a QuickMiner service, an automatic mining program that simplifies the mining process for subscribers. Through the use of this application, miners and hashpower renters can kick-start their operations immediately.Miners and providers have the ability to trade hashpower on the platform, with dynamic pricing adjusting every 10 seconds based on cryptocurrency values, hashpower availability and miner demand.For hashpower sellers, NiceHash offers the Profitability Calculator, a tool that enables users to calculate daily mining earnings by inputting their mining rig specifications and power costs. The platform supports CPU, GPU and ASIC mining, allowing miners to focus on the most profitable algorithm and token pairings.EasyMining, the latest addition to NiceHash’s repertoire and the product it is now offering in the Asian region, represents a significant step forward for the firm in simplifying cryptocurrency mining. The company claims that users can select their preferred cryptocurrency, letting the platform handle the mining process securely and effortlessly.Changing market conditionsCrypto platforms have had to be agile in 2023, as the underlying environment for crypto-centric offerings has been subject to rapid change in many jurisdictions. While NiceHash is making a concerted effort to etch out a market share within the Asian market through this product launch, it’s also had to withdraw its services from another market in recent months.On Sept. 27, the company informed its customers that it was withdrawing from the UK market. In a letter to users, it stated:”Due to the recent regulation changes in the United Kingdom we are no longer able to provide services to those residing in the United Kingdom.” . . . “We are working hard to be able to resume our services to UK residents as soon as possible.”The company withdrew all services from the UK market, including the exchange, mining, hashpower marketplace and wallets.