Sony Network Communications and Startale Labs to Launch Joint Blockchain Venture

Bithumb META Unveils Naemo World: A Sneak Peek into Immersive Metaverse ProjectBithumb META, the metaverse subsidiary of leading South Korean cryptocurrency exchange Bithumb, has unveiled a demonstration video of its metaverse project, Naemo World.Photo by julien Tromeur on UnsplashA glimpse into the virtual urban realmShowcased on the official YouTube channel, the 20-second video clip provides a glimpse into a virtual urban landscape that features both indoor and outdoor environments. Naemo World, a creation brought to life with Epic Games’ advanced 3D creation tool Unreal Engine 5, replicates intricate details such as the texture of fashion items, encompassing garments and accessories.More collaborations to enhance user experienceSpeaking about this development, Bithumb META CEO Cho Hyun-sik said, “The Naemo World demo video offers just a brief preview of the extensive range of content we have created thus far.” Cho added, “While our focus lies in the development of a broad and captivating content portfolio, we strive to create a multitude of practical applications by integrating content into tangible real-world products and services. To achieve this and expand our ecosystem, we are looking forward to collaborating with domestic and international partners across diverse industries.”Presently, Bithumb META is in collaboration with innovative companies such as tech firm Tencent Cloud and 3D fashion design software developer CLO. With an eye toward expanding the user experience within the metaverse, the subsidiary is poised to establish further partnerships.The forthcoming official launch of Naemo World, scheduled for next year, is projected to contribute to bolstering Bithumb’s endeavors to diversify its business ventures and foster synergistic growth.

Concerns Hanging Over Huobi Result in Significant Net OutflowAmidst rumors swirling around its executives’ involvement in a Chinese investigation, Seychelles-headquartered cryptocurrency exchange Huobi has observed net outflows exceeding $73.3 million in the past week.Photo by Shubham Dhage on Unsplash$73 million net outflowAccording to data sourced from blockchain analytics firm Nansen, Huobi reported an outflow of tokens worth $505.9 million over the previous week, with an inflow of $432.5 million. This resulted in a net outflow of approximately $73.3 million.Notably, this net outflow seems to be gaining momentum, as the exchange witnessed an outflow of $32.9 million on Monday alone, based on Nansen data. Additionally, Huobi’s stablecoin balances experienced a significant 33% contraction, dwindling to $99.47 million within the seven-day span, as per the data.Unverified reportsHowever, the outflow of funds coincided with unverified reports. Techub News, a Hong Kong-based crypto media outlet, cited insider sources to suggest that at least three high-ranking Huobi executives had been apprehended by Chinese authorities for investigation. Huobi originated in China with Chinese founders, albeit it has based itself in Seychelles ever since the Chinese crackdown on crypto trading emerged.Huobi’s Head of Social Media, Jiayin Xie, acknowledged the rumors and likened the situation to being “invited to tea,” a colloquial Chinese expression for being summoned by authorities for questioning. Despite this, Xie expressed concern over the baseless nature of the allegations, suggesting that the path to restoration might be challenging yet necessary for the exchange’s resurgence.Justin Sun, an advisor to Huobi, responded cryptically by tweeting the number “4,” a term commonly used in the crypto community to counter FUD (fear, uncertainty, and doubt). He also retweeted Xie’s post, standing in defiance of the rumor.Alongside this specific difficulty, Huobi continues to grapple with financial challenges. Sun revealed that the exchange hadn’t posted a profit from last year’s third quarter to this year’s second quarter. Despite this, Sun remains optimistic, projecting a potential break-even in the present quarter and a return to profitability in the upcoming quarter.Crypto platform uncertaintyThe aftermath of widespread crypto platform failures in 2022 has resulted in both regulatory pushback and concern among the crypto community relative to the well-being of the platforms that remain standing. Both Huobi and Binance are front and center of this speculation and concern. The issue is that without independently verified audits carried out by reputable auditors, market participants simply have no way of telling if these platforms are solvent.Travis Kling, the Chief Investment Officer at Ikagai Asset Management didn’t mince his words in taking Houbi to task via Twitter: “You are clowns and criminals, and there’s a billion dollar hole in your balance sheet that customers will have to eat.” Kling has been equally scathing in his criticism of Binance and its founder Changpeng Zhao (CZ). Ikagai took a significant hit in the FTX collapse, and in its wake, Kling promised to speak out more and be more critical regarding emerging issues within the sector.As the net outflows coincide with reports of executive custody, the situation surrounding Huobi remains fluid. The exchange’s journey through these challenges will no doubt be closely monitored by the crypto community.

South Korean FSC updates definition of virtual assets and VASP regulations for Virtual Asset User Protection ActThe South Korean Financial Services Commission (FSC) on Monday (local time) published a new enforcement decree and supervisory regulations for the Virtual Asset User Protection Act, under which non-fungible tokens (NFTs) and deposit tokens are excluded from the definition of virtual assets. The act serves to protect customer assets, prevent unfair trading practices, and enforce penalties.“The enforcement decree and supervisory regulations provide detailed standards and methods to safeguard users’ assets and establish stability in the market,” the FSC said.Photo by Tingey Injury Law Firm on UnsplashDefining virtual assetsThe agency explained that it decided to exclude NFTs because they are mainly bought and sold for collection purposes, posing low risks to holders and the financial system. However, NFTs that can be used as a means of payment for purchasing certain goods and services are considered virtual assets. On the other hand, deposit tokens — which will be managed by the Bank of Korea’s central bank digital currency network — are regarded as a legitimate form of monetary deposit and are subject to relevant regulations instead of the User Protection Act. Other “electronic certificates of economic value,” such as mobile vouchers and electronic bonds, are also excluded from the definition of virtual assets.Enhancing security and transparencyFollowing the clarified definition of virtual assets, the updated regulations underline conduct measures that virtual asset service providers (VASPs) must comply with. For example, VASPs must calculate the total value of their customers’ crypto assets every month and store at least 80% in a cold wallet to prevent infringements like hacks — a boost from the current 70 percent. Cold wallets are deemed more secure than hot wallets because they keep crypto keys offline instead of staying connected to the internet.VASPs are also not allowed to arbitrarily block deposits and withdrawals of user assets without prior notice and a justifiable reason like internal system failure or hacks as well as requests from courts, investigative bodies, the National Tax Service and financial authorities. User deposits must be stored in banks, which can invest them only in safe assets such as government bonds.The act is set to take effect on July 19 next year after a legislative review scheduled for next month.