Almost 60K Korean Crypto-Holding Households Owe $389M in Unpaid Social Insurance Premiums

AI sports challenge app Lillius has been selected as the first South Korean project in the Web3, sports and lifestyle categories to participate in the Cronos Accelerator Program, according to an official announcement on Wednesday (KST).Photo by Kelly Sikkema on UnsplashBridging exercise and Web3Lillius is a mobile app that allows users to participate in different sports and exercise challenges that use AI motion detection technology to analyze their form while performing the movements. After they complete a challenge, users can receive rewards based on their score. Notably, some of the challenges feature exclusive lessons from Korean Olympic medalists like taekwondo athlete Lee Dae-hoon, fencer Nam Hyun-hee and wrestler Jung Ji-hyun. Fostering innovationThe Cronos Accelerator Program, operated by global blockchain firm Cronos Labs, is an initiative aimed at nurturing and propelling startups in the Defi, Web3 and blockchain sphere, providing support in areas like technology, tokenomics, marketing, fundraising and more. In particular, participants in the program can receive mentoring and secure investment opportunities from industry experts. All participants are also eligible to receive an immediate stipend of $30,000 and the chance to win a $100,000 follow-up investment from Cronos Labs and its other partners. By participating in the Accelerator Program, Lillius plans to leverage its market potential, product appeal, cutting-edge AI technology and networks across the Cronos chain to become an innovative Web3 sports platform used worldwide.

Bank of Japan Publishes Results of CBDC PoCThe Bank of Japan (BoJ) recently concluded the second phase of its central bank digital currency (CBDC) proof of concept (PoC) project, which began in April. The results of this phase were published on Monday, and they shed light on key aspects such as the comparison between account-based and token-based CBDCs and the management of holding limits for users with multiple accounts.Photo by Manuel Cosentino on UnsplashToken-based CBDCsThe experiments conducted by the central bank covered a wide range of topics. Among the most intriguing findings were the advantages and disadvantages of token-based CBDCs and how to effectively impose holding limits for users with multiple CBDC balances.Token-based CBDCs have garnered interest from various central banks, with some adopting the UTXO token model used by Bitcoin without the use of a distributed ledger. A UTXO or unspent transaction output, defines where a blockchain transaction starts and finishes. The Bank of Japan explored this model and analyzed its pros and cons.In the initial proof of concept, both account-based and token-based CBDCs were examined, considering scenarios where the central bank managed the ledger or shared it with intermediaries like banks. In the token-based model, fixed token denominations were used, similar to physical cash in countries like India, and a centralized ledger was employed. However, in the recent phase, the central bank utilized flexible value tokens similar to UTXO and shared ledger functions with intermediaries.The Bank of Japan favored the flexible value token model due to its ability to handle multiple requests simultaneously. However, it acknowledged that this model may require more technical resources compared to the account-based approach. Challenges may arise when implementing additional functions, such as holding limits, while maintaining optimal performance. The European Central Bank (ECB) also noted in a recent report that most payment providers are accustomed to account-based payments and would incur costs to adapt to token-based systems.Another significant aspect explored by the BoJ was how to impose holding limits when users have multiple CBDC balances through different intermediaries. The challenge lies in determining if the overall holding limit has been breached without compromising user privacy.Homomorphic encryptionOne possible solution discussed in the report is the use of homomorphic encryption, which enables computations to be performed on encrypted data without it first needing to be decrypted. That allows for the necessary checks without intermediaries accessing the specific data being checked. Although this solution may slightly increase processing time, it could introduce a higher risk of data inconsistencies.Alternatively, a simpler approach proposed by the central bank is to establish a per-account holding limit and a limit on the number of accounts a single user can hold, rather than imposing global limits. Ideally, users with multiple accounts would have a higher per-account holding limit compared to those with fewer accounts.Phase 3 underwayWith the next pilot phase already underway, the BoJ aims to test the end-to-end process flow and identify challenges related to integrating with external systems. Additionally, they are creating a CBDC Forum to gather input from the private sector, ensuring a collaborative approach to CBDC development.While investigation and research into CBDCs continues, the BoJ has said that it will make a final decision on CBDC implementation by 2026.

While South Korea’s central bank has opted not to accumulate Bitcoin (BTC) at a nation-state level, North Korea has become a major holder of the leading crypto asset, albeit in a very unconventional way. The Democratic People's Republic of Korea (North Korea) is believed to currently be in possession of 13,518 BTC. That’s according to data compiled by the blockchain analytics firm Arkham Intelligence. Arkham has labeled the holding as belonging to the notorious North Korean hacking organization Lazarus Group. It’s been alleged by many observers over recent years that Lazarus is controlled by the North Korean government. Photo by Vasilis Chatzopoulos on UnsplashOn this basis, it would appear that North Korea now has a larger Bitcoin holding than the Bitcoin-friendly jurisdictions of Bhutan and El Salvador. The Kingdom of Bhutan holds 10,635 BTC through Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan.  Meanwhile, El Salvador holds 6,119 BTC. Bhutan has been accumulating Bitcoin as a consequence of Bitcoin mining activity carried out by the government in partnership with Singapore-based Bitcoin mining firm Bitdeer and others within the Asian country over recent years. El Salvador made a commitment to buy Bitcoin on an ongoing basis following its recognition of the digital asset as legal tender back in 2021. Based on Bitcoin pricing at the time of writing, Arkham’s data suggests that North Korea currently holds Bitcoin with an overall value of around $1.14 billion. It’s believed that North Korea’s overall holdings have been bumped up recently following a $1.4 billion hack of global crypto exchange Bybit last month. According to crypto data analysis firm Coin Metrics, the hack stands as one of the largest of all time.  Arkham’s data suggests that North Korea now has the third largest nation-state holding of Bitcoin, with the U.S. in first place, with 198,109 BTC, and the UK next with a holding of 61,245 BTC. Besides Bitcoin, the Lazarus Group is understood to be sitting on ETH, BNB, DAI and BUSD worth in the region of $30 million. In the immediate aftermath of the hack, the hackers moved to swap out some of the stolen Ether (ETH) for Bitcoin via the THORChain decentralized liquidity protocol. South Korea not building Bitcoin reserveWhile North Korea appears to have accumulated Bitcoin at the nation-state level through nefarious means, the Republic of Korea’s (South Korea) central bank has given an indication that it currently has no plans to accumulate Bitcoin.  According to a recent local media report, the Bank of Korea (BOK) responded in writing to a query from a Korean parliamentarian, outlining that there is no plan currently to develop a Bitcoin reserve or to stockpile Bitcoin at a national level.  The BOK is understood to have cited Bitcoin’s price volatility as a major concern. Additionally, the central bank outlined that Bitcoin doesn’t conform to the International Monetary Fund’s (IMF) guidelines relative to foreign exchange reserve management.