Bybit enables stock trading with USDT

Bithumb Eliminates Trading Fees to Attract Investors and Gain Greater Market ShareSouth Korean cryptocurrency exchange Bithumb has waived trading fees for all cryptocurrencies available on its platform. Before this change, users were charged trading fees ranging from 0.04% to 0.25%.Photo by Nicholas Cappello on UnsplashKorean won and BTC marketsThe platform’s Korean won market offers trade for 241 cryptocurrencies, whereas its BTC market caters to 24. The no-fee policy will remain in effect until a further announcement is made.Many suggest this move by Bithumb aims to expand its domestic market share. According to local media outlet ZDNet Korea, Upbit dominates with 86% of the Korean crypto market, leaving Bithumb trailing with 11%.Revenue impact and long-term strategyWith its 10th anniversary approaching in January, Bithumb has made this decision, potentially to attract more investors. An official from the exchange highlighted the importance of attracting investors to secure liquidity. While the absence of trading fees, Bithumb’s main revenue channel, may result in a revenue dip, the official believes that a larger user base secured by this move will be beneficial in the long run.

The Need to Distinguish Between Security and Non-Security Virtual AssetsWith the recent enactment of the Virtual Asset User Protection Bill in South Korea, there is a need to lay out criteria for determining whether virtual assets qualify as securities, says Kim Ja-bong, a senior research fellow at the Korea Institute of Finance, in his report titled “The Implications of Determining Which Virtual Assets Constitute Securities and Investor Protection” released on Saturday.Photo by Shubham Dhage on UnsplashThe implications of the Virtual Asset User Protection ActThe Virtual Asset User Protection Act — which will take effect in July of next year — aims to protect customer assets, establish regulations against unfair trading practices, and enforce penalties. Notably, it will target virtual assets that are not securities, deeming it necessary for regulators to determine if virtual assets qualify as securities or not in order to enforce the bill. Assets with characteristics of securities will fall under the jurisdiction of the Capital Markets Act.Therefore, if the Virtual Asset User Protection Act does not provide sufficient investor protection, issuers may be incentivized to issue non-security assets rather than security assets to avoid the regulations of the Capital Markets Act. This further necessitates the act of distinguishing between virtual assets that are securities versus those that are not.Determining if a virtual asset is a security or notThere are two approaches to do this, according to Kim: the passive approach, which avoids considering a virtual asset as a security whenever possible, and the active approach, which treats a virtual asset as a security whenever applicable.He argues that it is better to focus on whether an investment contract qualifies as a security if it is considered an investment contract, rather than simply selecting a specific approach.Furthermore, the nature of virtual assets renders them unbound by national borders, so it is necessary to establish assessment criteria that correspond with international standards, such as those used in the US and Europe.This is especially important because if the criteria differ from international standards, there is a risk of domestic investors suffering damages due to an issuer’s pursuit of regulatory arbitrage between countries.Equitable recognition and potential for security tokensAccording to Kim, the importance of determining whether virtual assets are securities lies in ensuring that security tokens receive the same recognition and trading treatment as traditional securities such as stocks. With such a measure, security token offerings can serve as an efficient and reliable method for raising funds. Although there may be concerns that such a regulation may hinder the development of virtual assets, it may well be an opportunity for security tokens to be qualified and trusted as high-quality financial instruments just like existing securities, Kim claims.Even for virtual assets that are not considered securities, there are many types of assets that are financial in nature, such as e-money tokens — therefore, it is necessary to actively protect investors in non-security virtual assets through financial regulations such as reinforcing disclosure obligations, which is being done in the EU through the Markets in Crypto-Assets Regulation (MiCA).Empowering regulators for enhanced investor protection and market integrityKim underscored that investor protection and healthy growth of the virtual asset market are made possible mainly through expanding regulators’ authority to protect economic interests and prevent damages. The author also suggested institutional reforms that grant regulators substantial authority, which would enhance their ability to protect investors effectively and provide compensation for damages.He added that regulators should also have the authority to enforce liability for damages or impose civil penalties for unfair trading practices conducted using classified information.

South Korean blockchain firm Ozys announced today that it has entered into a strategic partnership with Creder, a company dedicated to integrating traditional assets into the blockchain realm, to tokenize physical assets like precious metals into real-world assets (RWAs), according to Korean news site Digital Today on Thursday (KST). "Gold is one of the major RWA assets as the market value of assets linked with physical goods is increasing in the global market. We will take a transparent approach in expanding the RWA token ecosystem and showcase our business performance through our cooperation," said Lim Dae-hoon, CEO of Creder.Photo by Jingming Pan on UnsplashDriving innovationAs a member of the Klaytn ecosystem, internet juggernaut Kakao’s blockchain, Ozys operates platforms like Allbit.com, a layer 2 decentralized exchange (DEX), and a cross-chain token transfer platform dubbed Orbit Bridge. The firm utilizes blockchain-based technologies like smart contracts and Inter-Blockchain Communication (IBC) to develop and run its platforms. Meanwhile, Creder is currently working on The Mining Club, a project that mints solid gold into NFTs for safe storage and transfer. The gold NFTs are available for purchase on the NFT marketplace OpenSea. It is also developing Gold Station, a platform that allows for the digitized purchase, storage and investment of gold through the Gold Pegged Coin (GPC). GPC is a physical gold-based RWA issued on the Klaytn network. Expanding the scope of Web3The two companies will work together to onboard GPC to KLAYswap – Klaytn’s on-chain swap protocol – which will be issued via smart contract on Jan. 3. The two companies also plan to tokenize other precious metals like silver, copper and palladium. By combining physical assets and blockchain technology, the companies aim to expand the Web3 ecosystem and lead next-generation markets. "The tokenization of gold, which is considered a safe asset, is expected to diversify the Web3 ecosystem," said Choi Jin-han, CEO of Ozys. "We plan to explore various collaborations with Creder, starting with the onboarding of the gold-based token GPC on KLAYswap."