Japan’s Aozora Bank Plans Digital Currency Launch

Hong Kong’s SFC Issues Warning Against Unlicensed Crypto PlatformsIn a move to safeguard its financial ecosystem, the Hong Kong Securities and Futures Commission (SFC) issued a stern warning recently, cautioning against the activities of unlicensed cryptocurrency exchanges involved in what it termed “improper practices.”In a statement published to its website on Monday, the regulatory authority underscored the gravity of engaging in unlicensed operations within the crypto trading sphere, categorizing such activities as a “criminal offense” under Hong Kong jurisdiction.Photo by Chi Hung Wong on UnsplashDeceptive tacticsFurthermore, the SFC exposed the deceptive tactics employed by certain unlicensed crypto trading platforms, which misleadingly assert that they have submitted license applications to the commission. The reality, however, is quite the opposite, as these platforms remain unregulated.The warning coincides with the SFC's ongoing establishment of a novel regulatory framework for overseeing retail crypto trading. Notably, the SFC made it clear that applicants who fail to adhere to pertinent regulations might find themselves ineligible for licensing under the newly instituted regime.This initiative from the SFC aligns with the broader efforts undertaken by Hong Kong authorities to instill effective oversight and regulation within the cryptocurrency market. The primary objective remains the protection of investors’ interests and the preservation of the integrity of the overall financial system.Platforms must demonstrate ability to complyThe SFC emphasized, “VATPs (Virtual Asset Trading Platforms) which consider themselves eligible for deeming under the transitional arrangements are reminded that the SFC may decide that deeming is inapplicable if it does not see a reasonable prospect for the VATPs to successfully show that they are capable of complying with the applicable legal and regulatory requirements.”This development follows closely on the heels of Hong Kong’s recent announcement outlining plans to grant licensed cryptocurrency platforms the permission to cater to retail investors within the new regulatory framework.These comprehensive guidelines encompass critical facets such as cybersecurity protocols, asset custody safety standards, and the segregation of client assets. This regulatory evolution commenced on June 1, synchronizing with the launch of the novel licensing regime for virtual asset platforms.Drawing attention to the growing influence of the sector, it’s worth noting that in April, cryptocurrency exchange OKX registered an astonishing surge of over 10,000 new user sign-ups within a mere month of launching its operations in Hong Kong.Web3 implementationIn a recent tweet, Chris Lee, former CEO of both the Huobi and OKX crypto exchanges, said that “if Hong Kong wants to implement Web3 well, it still needs to complete the basic requirements, such as Web3 foundation laws and bills.” Lee added that “Hong Kong’s competitors will always be itself, not New York or Singapore.”The Hong Kong SFC’s warning to unlicensed crypto platforms is another step in creating the right foundation for Web3 in the city. It underscores the concerted effort to maintain a regulated and secure environment for cryptocurrency transactions within the Chinese autonomous territory.As the regulatory landscape continues to evolve, industry participants are gradually being compelled to adhere to the stipulated legal and compliance requirements in an effort to foster a robust crypto ecosystem.

South Korean cybersecurity firm AhnLab’s blockchain arm, AhnLab Blockchain Company, is working with Web3 performing arts platform Metacultures to offer free limited edition NFTs to all visitors of the "School of Rock" musical world tour’s show in Seoul, according to local news outlet Etoday on Monday (KST). The NFTs will be issued via AhnLab Blockchain Company’s digital Web3 wallet, ABC Wallet. As a non-custodial wallet, this service uses multi-party computation to support multiple blockchain networks including Ethereum, Polygon and Klaytn.Photo by Gwen King on UnsplashPreserving memories"We aim to offer a way for Korean fans of the 'School of Rock' musical to preserve the special experience of the performance with this NFT," said Lim Joo-young, Business Leader at AhnLab Blockchain Company. "We will continue to carry out various projects based on blockchain technology at various events." Visitors who wish to receive the NFTs can scan the QR code provided at the performance venue and register an ABC Wallet using their social media accounts on the linked site, after which the NFT will be automatically issued to their wallets. "We are glad to be able to provide NFT products for the 'School of Rock' musical to the audience through ABC Wallet, which boasts excellent security. We look forward to various security-based collaborations with AhnLab Blockchain Company in the future," said Lee Sang-woon, CEO of Metacultures. Show detailsThe ongoing performance will be held until March 24 at the Seoul Arts Center’s Opera House in Seocho-gu, Seoul.

Mirae Asset Securities Expands Security Token Group with Media CollaboratorsSouth Korean securities firm Mirae Asset Securities announced yesterday the expansion of its security token working group. This development includes the addition of two new media-related companies to the group: Studio Genius, a content production house, and Solaire Partners, a venture capital firm with a specific focus on the media industry. Mirae has chosen to collaborate with these companies to jointly develop security token products centered around Korean films and TV series.Photo by Timothy Ries on UnsplashSynergy between Korean content and financeThe Korean securities company claims that since the Financial Services Commission unveiled regulatory guidelines for security tokens in February, it increased focus on exploring the synergy between Korean content and finance. In support of this, data from the Korea Creative Content Agency indicates that as of 2022, the Korean content market stands as the world’s seventh-largest, experiencing an average annual growth rate of 11%.Studio Genius, established by Yang Woo-suk, the director behind the box office success “The Attorney,” is currently in the process of producing a TV series with a global audience in mind.Meanwhile, Solaire Partners was a key investor in the critically acclaimed movie “Parasite.” This investment company, founded in 2017, is led by Choi Pyung-ho, a seasoned expert in content production. Prior to founding Solaire Partners, Choi held the position at CJ Entertainment (now CJ ENM) as head of its film business.Fractional investment and blockchain techOther participants who are newly joining the group include Treasurer, a luxury goods fractional investment platform, as well as Coinplug and Zkrypto, both technology companies. In collaboration with Treasurer, Mirae intends to discuss the valuation and commercialization of luxury goods, which hold substantial investment potential. Subsequently, they plan to explore various avenues for integrating security tokens into their business strategies.Coinplug is the first company in Korea to commercialize blockchain-based certificates for the financial sector. Positioned as a Web3 technology company, Coinplug boasts a diverse portfolio of blockchain technologies, including decentralized identity (DID), mainnets, wallets, decentralized applications (dApps), and non-fungible tokens (NFTs).Zkrypto stands as a prominent leader in South Korea within the realm of zero-knowledge (ZK) proof technology. This distinction is underscored by its product, which received an innovation award at CES in Las Vegas earlier this year. Mirae holds the belief that ZK-proof technology will play a pivotal role in facilitating enhanced privacy protection and accelerated transaction speeds for security tokens.Another collaborative endeavorIn addition to the aforementioned working group, Mirae is running the Next Finance Initiative, a consortium with the primary goal of broadening the security token ecosystem. Partners in this consortium are the two notable entities: SK Telecom and Hana Financial Group. Mirae will strive to further grow and enhance the reach of this consortium.