Aptos charts success in South Korea through bridging Web2 and Web3

Singapore's Monetary Authority (MAS) has recently added the non-custodial crypto wallet, imToken, to its Investor Alert List, prompting a response from the Singapore-based company.Photo by Zhu Hongzhi on UnsplashIdentifying unregulated entitiesAccording to the official MAS website, imToken found its place on the alert list on Dec. 5. This regulatory move demonstrates that MAS is monitoring the evolving crypto landscape with a view towards safeguarding investors from potential risks. The list serves as a repository of unregulated entities that might be mistakenly perceived as licensed or regulated by MAS. The regulatory body had also flagged BKEX digital asset exchange in December. BKEX had suspended withdrawals earlier in the year, having gotten caught up in an investigation surrounding money laundering activity on the platform. More recently, the company has ceased operations. Company responseIn response to being added to MAS's alert list, imToken took to the X social media platform (formerly Twitter) to address user concerns on Tuesday. The non-custodial wallet clarified that it had not applied for a financial business license in Singapore, the primary reason for its listing. Notwithstanding that, ImToken reassured its users that their assets remain unaffected due to the platform's decentralized nature. The company outlined that it is actively engaging with MAS to clarify its business model and aims to have imToken removed from the Investor Alert List. This development highlights the ongoing dialogue between crypto platforms and regulatory bodies, emphasizing the need for clear communication and compliance within the evolving crypto regulatory landscape. As MAS continues to take decisive actions, the industry remains under scrutiny, necessitating collaboration between regulators and crypto entities for a well-balanced and secure financial ecosystem. Unintended consequencesMAS has taken a proactive approach to regulation in the crypto space. That has been evidenced in previous actions such as blacklisting Binance in 2021, leading to Binance relocating its operations to Dubai. That blacklisting turned out to provide a classic example of the law of unintended consequences. With Binance having removed itself from the local market following the blacklisting, many Singaporeans chose to use FTX instead. FTX subsequently failed in November 2022, leaving a disproportionate number of Singaporean customers out of pocket. The inclusion of imToken on the alert list is particularly noteworthy amid the growing popularity of non-custodial wallets. Statista data from 2022 indicates that 81 million users have adopted non-custodial wallets, providing them with greater control over private keys and crypto assets. However, this surge in usage has also brought about increased regulatory attention due to associated risks. Founded in 2016, imToken was initially launched in Hangzhou, China, prior to relocating its headquarters to Singapore. At various stages, the firm has been funded by companies such as IDG Capital, Qiming Venture Partners and HashKey. HashKey has also collaborated with the company by extending trading services to imToken wallet users, including direct bank transfers. In 2021 imToken partnered with U.S. blockchain infrastructure provider Infinity Stones in order to enable an in-wallet ETH2.0 staking service.

Terraform Labs Co-Founder Indicted in South KoreaTen individuals linked to the Terra USD collapse have been indicted in South Korea on charges associated with violations of capital markets law, including the Co-Founder of Terraform Labs, Daniel Shin. That’s according to a report published by Bloomberg on Tuesday.©Pexels/Donald TongTwo of the ten were charged with breach of trust while the remaining eight, including Shin, were charged with illegal trading. Prosecutors confirmed that all of the charged individuals have ties to Terraform Labs, the company responsible for developing the Terra protocol, and the Terra USD (TUSD) stablecoin and Luna cryptocurrency which collapsed in 2022.It’s understood that the ten individuals were also accused of illegal disclosure of clients’ payment information and the embezzlement of corporate funds. The authorities have claimed that the ten individuals are responsible for causing “astronomical damage” to investors. They estimate that all ten of them took 463 billion won, around $347 million, in profit.Business interestsShin co-founded Terraform Labs with Do Kwon in 2018. He left the project in 2020, long before its spectacular failure in 2022. However, he would have profited considerably from the project. Prior to co-founding Terraform Labs, Shin had founded lifestyle commerce company TMON in 2010. Two years later, he founded venture capital and private equity firm, Fast Track Asia while in 2017 he was a founding partner of another venture capital and private equity firm, Bass Investment.He remains involved in all of those other businesses. Furthermore, Shin founded integrated payments firm PortOne Global in January 2020, immediately upon exiting Terraform Labs. He remains CEO of PortOne Global today.$185 million frozenOn Tuesday, the Seoul Southern District Prosecutor’s Office outlined that it had frozen assets to the value of 246.8 billion won, approximately $185 million, belonging to those that it has brought charges against. South Korean authorities had previously acknowledged a difficulty in seizing assets related to Terraform Labs Co-Founder Do Kwon. It’s understood that a transfer of funds from Do Kwon to a prominent South Korean law firm is being investigated. Otherwise, the search for funds has led them overseas where it’s understood that Do Kwon purchased real estate in his mother’s name in the United States in a bid to evade asset confiscation.Free pending trialShin remains at liberty pending trial. Back in December, a South Korean court turned down a request to arrest him on the basis that he wasn’t likely to destroy evidence and wouldn’t pose a flight risk.That hasn’t proven to be the case where his former colleague Do Kwon is concerned. Do Kwon fled to Montenegro where he was recently charged with having entered the country on false documents. Both South Korea and the United States have formally applied for his extradition. In the United States, the Securities and Exchange Commission (SEC) has sued both Do Kwon and Terraform Labs. Terraform Labs subsequently submitted a request to the courts in the US to dismiss the lawsuit, claiming the SEC lacks jurisdiction.

Ripple to lead National Bank of Georgia’s CBDC pilot projectThe National Bank of Georgia (NBG) has selected enterprise blockchain and cryptocurrency solutions firm Ripple as the official technology partner for its ambitious Digital Lari (GEL) pilot project. The initiative aims to explore Ripple’s central bank digital currency (CBDC) technology, assessing its practical applications and potential benefits for a wide range of stakeholders, including the public sector, businesses and retail users.Photo by Max Kukurudziak on UnsplashCiting Ripple’s CBDC tech capabilitiesRipple divulged details of the collaboration via a press release published to its website on Thursday. The decision to entrust Ripple with this pivotal role came after a competitive selection process. The Georgian central bank cited a number of reasons for choosing to partner with Ripple, including Ripple’s deep understanding of the project’s objectives and a commitment to its success.The central bank thought that it had a clear project development roadmap and that it could facilitate a gradual deployment approach to various use cases. Additionally, the NBG acknowledged Ripple’s extensive experience in implementing real-life pilot projects, encompassing primary CBDC digital infrastructure, smart contracts and tokenization.Ripple’s CBDC solution, the Ripple CBDC Platform, emerged as the frontrunner for its capacity to provide a comprehensive end-to-end solution. The company launched the platform in May of this year. This platform empowers central banks, financial institutions and governments to seamlessly create, manage, transact and redeem CBDCs. Notably, it leverages the XRP Ledger (XRPL), known for its energy efficiency and open-source nature.Natia Turnava, Acting Governor and Member of the Board of the National Bank of Georgia, expressed satisfaction with the choice of Ripple as their official technology partner, emphasizing Ripple’s technical excellence and the expertise of its team.She also expressed gratitude to other companies that participated in the selection process. Ripple’s James Wallis, VP of Central Bank Engagements, highlighted the NBG’s pioneering role in adopting blockchain technology to usher in the digital era for the Georgian economy.He noted that this pilot project, empowered by the Ripple CBDC Platform, would set the stage for transformative advancements in blockchain technology’s utilization within the public sector, enhancing efficiency and transparency in transactions. Back in May, Wallis remarked on the launch of its CBDC platform that he believed “this platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations.” He added:“The innovative capabilities of the platform will help enable instant settlement of both domestic and cross-border payments, reduce risk, and improve the user experience of quickly sending and receiving digital currency on either side of a transaction.”Transitioning from selection to pilot phaseWith the selection phase now concluded, the NBG is preparing to transition to the pilot stage, where they will test the Ripple CBDC Platform in a live environment. This real-world testing will enable the NBG to assess the practicality of select use cases, taking Georgia one step closer to realizing the full potential of CBDCs in their economic landscape.Ripple’s impact is not limited to Georgia. It has been actively engaging with governments and central banks worldwide. Ripple has announced five pilot programs in collaboration with countries like Bhutan, Palau, Montenegro, Colombia and Hong Kong. Furthermore, discussions are underway with over 20 other nations across the globe.