Wemade to attend Taipei Game Show this month

Seoul Prosecutors to Establish Dedicated Division to Combat Crypto CrimesSeoul Southern District Prosecutors’ Office announced that by the end of this month, it will establish a specialized division dedicated to investigating cryptocurrency crimes, according to local news agency Yonhap. This move marks the introduction of the first-ever cryptocurrency-focused investigation organization within South Korea’s prosecution system.Photo by Markus Winkler on UnsplashInvestigation and legal analysisThe newly formed joint cryptocurrency investigation division will prioritize its efforts on combating various crypto-related crimes, including fraudulent activities. Furthermore, the division will examine legal documents to determine whether certain virtual assets constitute securities.This introduction of a specialized division by the public prosecution is expected to streamline and expedite ongoing investigations into cryptocurrency-related cases, demonstrating the authorities’ dedication to addressing the emerging challenges associated with illicit activities in the crypto sphere.Investor protection effortsSouth Korea has been ramping up its initiatives to safeguard crypto investors. Notably, last month, the National Assembly’s plenary session passed the Virtual Asset User Protection Bill, which is scheduled to take effect in July of next year. Further strengthening the protective framework, the Financial Services Commission (FSC) recently announced a plan to require companies to disclose their virtual asset holdings in the footnotes of financial statements.

A regulatory divide regarding the digital asset sector is emerging across Asia. While China is moving to strengthen its prohibition on cryptocurrency operations to ensure financial stability, Central Asian states such as Kazakhstan and Turkmenistan are increasingly formalizing frameworks to integrate and regulate the industry.Photo by Road Ahead on UnsplashChina cites renewed crypto speculationAccording to Reuters, the People’s Bank of China (PBOC) has reaffirmed its prohibition on business activities involving digital assets, citing a renewed wave of speculation as a complication in managing financial risks. At a Nov. 28 meeting on crypto regulation, the central bank reiterated that commercial activity involving cryptocurrencies remains illegal. PBOC officials stated that enforcement against unlawful financial operations tied to cryptocurrencies would be intensified to safeguard economic stability. The central bank identified stablecoins as a primary concern, noting that they fail to meet customer identification standards and broader anti-money laundering (AML) requirements. Officials warned that these assets could create vulnerabilities to fraud, money laundering, and unregulated cross-border capital flows. Kazakhstan mulls $300M crypto moveIn contrast to Beijing’s elevated oversight, Kazakhstan is exploring the integration of digital assets into its financial reserves. According to BeInCrypto, National Bank Chairman Timur Suleimenov indicated on Nov. 28 that the monetary authority is considering an allocation of up to $300 million into crypto assets. However, he clarified that deploying the full amount is unlikely. Suleimenov explained that any potential investment would be drawn from the central bank’s gold and foreign-exchange reserves rather than the National Fund. He added that the National Bank of Kazakhstan intends to wait for market conditions to stabilize, citing recent volatility as a factor making the timing of such an investment uncertain. The latest development comes after Bloomberg Law reported last month that the country is preparing to launch a crypto reserve fund valued between $500 million and $1 billion as early as next year. This proposed fund is expected to target exchange-traded products and industry-related companies rather than direct crypto purchases, with capital potentially sourced from repatriated assets and mining proceeds. Simultaneously, the government is advancing physical infrastructure for the sector. In May, President Kassym-Jomart Tokayev unveiled plans for a "CryptoCity" pilot zone in the Alatau development north of Almaty. Under this government-approved sandbox program, authorities are testing blockchain-based tools for taxation, investment, and decentralized identity systems, with the aim of positioning Kazakhstan as a regional hub for innovation. Turkmenistan to launch licensing rulesFurther deepening the regional trend toward adoption, Turkmenistan has moved to establish a formal legal infrastructure for the sector.  Another Reuters report said the country recently passed legislation to legalize and regulate digital assets, which President Serdar Berdymukhamedov has signed into law. Scheduled to take effect on Jan. 1, the legislation creates a licensing regime for crypto exchanges and mining operations. A government spokesperson said the law spells out the legal and economic status of virtual assets, covering their creation, storage, circulation, and other functions, and aims to boost digitalization and draw foreign investment. Despite their differing approaches, the three countries reflect a shared recognition of digital assets’ growing relevance in global finance. China continues to view cryptocurrencies as a source of systemic risk, while Kazakhstan and Turkmenistan are testing whether regulation, licensing, and selective investment can deliver economic gains without compromising stability. Together, these diverging paths underscore a broader debate over whether engagement or exclusion offers a more resilient long-term model. 

Hana Bank Teams Up with Content Distributor Danal Ent to Establish Security Token EcosystemHana Bank and Hana Securities, affiliates of South Korea’s renowned Hana Financial Group, have recently entered into a business agreement with content distributor Danal Entertainment as reported by local news outlet Newsis. The purpose of this collaboration is to establish a security token ecosystem centered around content and explore mutually beneficial business prospects.Photo by Shubham Dhage on UnsplashIP-backed security tokensUnder this agreement, their security token ecosystem will leverage Danal Entertainment’s diverse intellectual properties (IPs) associated with music, movies, goods, and concerts. Through the tokenization of copyrights, patents, and trademarks, the collaborative group aims to introduce cutting-edge digital financial services that provide convenient and user-friendly means of purchasing and managing a wide range of tangible and intangible assets.Legislative push in parliamentTheir collaboration aligns with the ongoing efforts within the Korean financial authority and political circles to promote security token legislation. It was reported earlier that proposed amendments to the Electronic Securities Act and the Capital Markets Act, which aim to legalize security tokens, will be submitted to the National Assembly later this month.Choi Won-young, the Managing Director of the Digital Division at Hana Securities, emphasized that this partnership seeks to establish a successful security token business model within the content and entertainment sector. Furthermore, he expressed the company’s commitment to delivering innovative digital financial services that utilize content-based security tokens, thereby creating new experiences and value for customers.Lim Yoo-yup, the CEO of Danal Entertainment, highlighted their aspiration to revolutionize the Korean content industry by streamlining the process of content creation and consumption. The expectation is to introduce a new paradigm in the industry by making it easier for users to engage with content.Danal’s setback and resilienceMeanwhile, Danal Entertainment’s parent company, Danal, reported a net loss in the first quarter of this year, primarily attributed to the decline in the value of Paycoin (PCI). PCI is the native token of PayProtocol, Danal’s crypto payment platform. The loss was largely a result of PCI’s delisting from the member exchanges of the Digital Asset eXchange Alliance (DAXA). DAXA consists of the nation’s five largest crypto trading platforms: Upbit, Bithumb, Coinone, Korbit, and Gopax.Despite this setback, Paycoin (PCI) has managed to secure trading support from cryptocurrency exchanges Huobi, OKX, Bitget, and GDAC. Furthermore, Danal is taking measures to remedy the situation. They are focusing on providing major cryptocurrency payment solutions and wallet services within the Korean market, seeking listings on foreign crypto exchanges, and expanding their presence in global markets.Hana’s blockchain initiativesIn a separate development, the Hana Financial Group has recently been actively promoting businesses utilizing blockchain technology. Earlier this month, Hana Bank joined forces with Korean blockchain firm Trackchain to develop and operate a platform that facilitates art banking services based on Web3 technology. These services involve the exhibition, advertisement, and distribution of artworks.