Bank of Korea and Samsung Team Up for Offline CBDC Research

KISA and Ministry of Science and ICT Launch Blockchain Program for InnovationThe Korea Internet and Security Agency (KISA) and the Ministry of Science and ICT announced on Thursday that it held an initiation ceremony for the 2023 Blockchain Nuridan — an annual program aimed at recruiting beta testers for blockchain services to foster an ecosystem for blockchain innovation.Photo by Shubham Dhage on UnsplashPublic participation in advancing blockchain in KoreaNow in its fifth year, Blockchain Nuridan offers hands-on experience in blockchain services in order to raise public awareness of blockchain technology and businesses and gather feedback on how to improve these services.This year, 150 citizens who have a high level of understanding of the industry, such as blockchain professionals, university students majoring in blockchain, and more, have been selected to test and experience various services from twelve different blockchain projects, then provide comments and feedback for improvement. They will also be responsible for choosing services to be beta tested next year as well as sharing their reviews of the services on their social media accounts.Fostering collaboration and engagement“Together with the Blockchain Nuridan, KISA will do our best to enhance the competitiveness of companies participating in blockchain projects and provide services that will bring convenience to people’s lives,” said Kwon Hyun-oh, Head of the Digital Industry Division at KISA.At the latest initiation ceremony, the citizens received certificates for their participation and were issued non-fungible token (NFT) badges. There was also an information session outlining the details and role of the program.

Korea's Democratic Party of Korea (DPK) plans to re-request the Financial Services Commission (FSC) for an authoritative interpretation of spot Bitcoin ETFs in June, seeking the legal interpretation of such products, according to The Korea Economic Daily.  The FSC currently does not classify virtual assets as financial investment products, as they do not function as underlying assets for ETFs as stipulated by the Capital Market Act. Thus, the issuance and listing of spot cryptocurrency ETFs have not been permitted in the country, limiting trading opportunities for Korean investors. Photo by Pixabay on PexelsDespite the situation, interest around the spot Bitcoin ETFs has surged in South Korea following the approval of such ETFs in the United States and recently in Hong Kong. This heightened expectation of spot Bitcoin ETF approval has coincided with the 22nd general election held on April 10.  DPK’s attempts to keep its promise The DPK’s decision to seek clarification on spot Bitcoin ETFs from the financial regulator comes after the party’s landslide win at the general election, securing a total of 175 seats out of 300 in the National Assembly. Among the party’s key pledges were to allow the trade of spot BTC ETFs and ease regulations on crypto products.  In the run-up to the election, the DPK and the ruling People Power Party (PPP) vied for introducing pro-crypto pledges to win votes from young Koreans in their 20s and 30s, who make up a significant portion of crypto investors within the country.  Bold move to amend Capital Market ActThe spokesperson of the DPK said the party will first seek an authoritative interpretation regarding spot Bitcoin ETFs from the FSC and continue to closely monitor how the situation unfolds. The prevailing view from experts, however, is that the agency is likely to remain sturdy in its view.  If the FSC insists on its current stance on spot BTC ETFs, the party would go as far as to amend the Capital Market Act, the spokesperson said, which would take at least a number of months to follow all due processes. 

Binance Explores Stablecoin Issuance on MUFG Progmat Coin PlatformMitsubishi UFJ Trust and Banking Corporation (MUTB), the trust arm of Japan’s largest bank, Mitsubishi UFJ Financial Group (MUFG), has announced a collaborative effort with Binance Japan to investigate the issuance of public blockchain stablecoins denominated in Japanese yen and other currencies.Photo by Aditya Anjagi on UnsplashProgmat blockchain platformAccording to a press release published on Tuesday, the development is centered around MUFG’s Progmat blockchain tokenization platform, which encompasses the Progmat Coin stablecoin platform. Notably, Progmat now counts among its stakeholders some of Japan’s major financial institutions, including the second and third largest banks, SMBC and Mizuho.The scope of this venture extends beyond the confines of Japanese users, potentially transforming Japan into Binance’s stablecoin issuance hub. The initiative has emerged against the backdrop of recent regulatory events in the United States, notably the New York State Department of Financial Services (NYDFS) instructing Paxos Trust to halt the issuance of the Binance USD (BUSD) stablecoin earlier this year. The timeline for the launch of Japanese Binance stablecoins is set for 2024, contingent upon Binance Japan obtaining an Electronic Settlement Methods Transaction Business Provider license.Japan has been making strides in its regulatory landscape to accommodate various types of stablecoins, including those issued by banks and trusts. Under this framework, stablecoins issued by trusts like Mitsubishi UFJ Trust enjoy some unique advantages, such as exemption from licensing requirements and the absence of Know Your Customer (KYC) protocols for stablecoin transfers. Furthermore, these stablecoins are backed by ring-fenced reserve assets, mirroring the approach taken by Paxos Trust.The underlying Progmat blockchain technology is rooted in the Corda enterprise blockchain. However, MUFG has been actively collaborating with DataChain and TOKI technology to facilitate stablecoin issuance on multiple public blockchains, allowing for cross-chain transfers. The initial plan encompasses blockchain platforms like Ethereum, followed by Cosmos, Polygon, Avalanche, and others. This development raises questions about the potential elevation of Binance’s BNB Chain in the broader blockchain ecosystem.Tatsuya Saito, Founder and CEO of Progmat, remarked on the collaboration, stating:“We believe that the new stablecoin from this collaboration will be a step forward in advancing the Web 3.0. Progmat is a neutral infrastructure that enables the issuance of various brands of stablecoins with the greatest flexibility of use and the least risk of de-pegging, it does not compete with players issuing their own stablecoins.”Saito also hinted at other stablecoin projects in the pipeline with Japanese financial institutions and partners, underscoring Binance’s dominant position in the cryptocurrency trading world.Expanding presence in JapanBinance Japan, which recently acquired an existing crypto exchange and rebranded it as Binance Japan, currently lists 34 tokens. In addressing the WebX conference in July, Binance Founder and CEO Changpeng Zhao (CZ) recognized the positive regulatory environment that exists in Japan relative to Web3.From Binance’s perspective, this latest collaboration represents a substantial win, especially after the loss of its own stablecoin. Binance has been promoting lesser-known stablecoins on its exchange by reducing transaction costs, a strategy with inherent risks. In contrast, the alliance with MUFG, a globally significant bank, adds credibility and a different level of assurance to stablecoins.