KuCoin affiliate applies for license in Hong Kong amid identity mix-up

Celebrating a Decade of Crypto in South Korea: Experts Convene to Chart the FutureThe MK Virtual Asset Conference, an event held in Seoul yesterday to celebrate the 10th anniversary of South Korea’s cryptocurrency industry, convened experts, politicians, and stakeholders to discuss the future of blockchain and digital assets.The conference was hosted by Maeil Business Newspaper and its blockchain subsidiary Mblock, and sponsored by cryptocurrency exchange Korbit, the Korean Securities Association, and the Korea Derivatives Association. It served as a valuable opportunity to evaluate the current state of the crypto market and explore solutions for pressing challenges.Photo by Ciaran O’Brien on UnsplashInevitable rise of blockchainOne of the distinguished speakers at the event highlighted the inevitable rise of blockchain technology. Kim Yong-beom, CEO of Hashed Open Research, the research arm of Seoul-based crypto venture capital firm Hashed, said, “Blockchain is the antithesis of the modern financial and capital system. While traditional finance possesses its own merits, it also carries substantial transaction fees and is confined within national boundaries. It is only natural that such a counterforce has emerged to address these issues.”He continued, “Given that traditional finance properly responds to blockchain technology’s rise and overcomes its limits, blockchain may lose its competitive edge. However, if traditional finance fails to do so, blockchain will not be easily dismissed.”CEO Kim also highlighted the third section named “Blueprint for the Future Monetary System” of the Bank of International Settlements’ 2023 Annual Economic Report, which was published in June. The report states, “The BIS Innovation Hub, in partnership with central banks around the world, stands at the forefront of experimentation with CBDCs and tokenization.” According to Kim, the traditionally conservative financial institution, which had previously been skeptical about blockchain-based distributed ledger technology, has now shifted its position to be more accepting of blockchain.Importance of institutional investorsDuring the conference, an academic underscored the importance of allowing institutional investors to enter the virtual asset space. Kang Hyoung-goo, an assistant professor in the Department of Finance at Hanyang University Business School, pointed out that the crypto market, when primarily driven by retail investors, tends to favor volatile assets over stable ones. Due to this inclination, more individual investors are attracted to exchanges where speculative trading is a frequent occurrence. This dynamic creates a vicious cycle, he explained.Defining digital assetsOn a different note, Lee Han-jin, a lawyer at Kim and Chang, one of the largest law firms in the country, emphasized the crucial need to establish a legal definition of digital assets. In Lee’s view, digital assets exist in the form of data on the blockchain, setting them apart from traditional assets. He argued that without a legal definition outlining the nature of these assets, they could potentially devolve into entities that mislead the public, lacking both legal reliability and trustworthiness.Political voicesPoliticians also took the stage to share their thoughts. Back Hye-ryun, a Democratic Party of Korea member, expressed in her congratulatory speech her commitment to protecting virtual asset users through legislation. Kim Jong-min, another lawmaker from the same party, underscored the unstoppable nature of the blockchain trend. Yun Chang-hyun, a lawmaker of the ruling People Power Party, mentioned that while Bitcoin couldn’t establish itself as a key currency in an anarchic manner, stablecoins and central bank digital currencies (CBDCs) are now positioned to fill that role.Regulatory considerationsMeanwhile, Kim So-young, Vice Chairman of the Financial Services Commission, stressed the ongoing uncertainty surrounding the societal impact of cryptocurrencies and how governments should oversee them. He emphasized that the Korean government aims to establish a balanced framework to facilitate the responsible development of digital assets. Furthermore, he highlighted the necessity of collaborating with major economies due to the global nature of virtual assets.

OKX Middle East Fintech FZE, the Dubai-based subsidiary of cryptocurrency exchange OKX, announced on Tuesday that the company has successfully obtained a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA), signaling its entry into the Middle East market.Photo by David Rodrigo on UnsplashNon-operational licenseThis newly acquired license positions OKX Middle East to offer spot services and spot pairs to institutional and qualified retail customers in the region. However, it should be noted that the operational aspect of the license is pending. The company stated that it will remain non-operational until all remaining conditions and select localization requirements are fully satisfied, a process anticipated to conclude in the coming weeks. Once operational, OKX Middle East will have the green light to provide regulated VASP services, facilitate AED deposits and withdrawals and introduce spot trading pairs. The move, outlined in a blog post published by the company, comes months after the subsidiary received a preparatory license from VARA, underlining its commitment to complying with regulatory standards and expanding in the Middle East. Rifad Mahasneh, the general manager for the MENA Region at OKX, expressed optimism about the region's potential, stating: "The MENA region holds immense potential to become a hub of excellence for Web3 and virtual assets. We eagerly anticipate the chance to further enhance the already flourishing ecosystem throughout the region." Global hubThis strategic move aligns with the United Arab Emirates' (UAE) goal to establish itself as a global hub for the cryptocurrency industry. VARA, formed in March 2022, was tasked with regulating the emerging virtual asset sector in Dubai. The regulatory framework gained momentum when Sheikh Mohammed bin Rashid Al Maktoum, Dubai's prime minister and ruler, approved a new virtual assets law in March 2022, providing a legal foundation for the crypto industry in the city. Dubai's proactive stance towards regulating the cryptocurrency industry has attracted several major players, including Crypto.com, Ripple, Binance and Bybit, all securing crypto licenses from Dubai's regulator. OKX Middle East joins the likes of TOKO FZE and Trek Labs Ltd FZE in obtaining a license for exchange services. Tim Byun, the Global Head of Government Relations at OKX, emphasized the significance of this license in the company's journey towards a trustless system. "This license was a crucial step for OKX as we move from a trust-based system to one that is trustless and empowers users to take control of their financial future," he stated. Byun expressed excitement about contributing to the development of Dubai's crypto and Web3 ecosystem, highlighting the importance of the market. It's noteworthy that OKX, already regulated in the Bahamas, currently restricts customers from the United States due to regulatory issues. The expansion into the Middle East represents a strategic move for OKX to tap into the growing crypto market in the region and aligns with the broader trend of cryptocurrency exchanges expanding their global footprint. 

Galaxia Metaverse, NFT Marketplace Pala Join Forces to Expand Blockchain EcosystemGalaxia Metaverse, a South Korean blockchain company, announced last Thursday a partnership with Pala, the largest non-fungible token (NFT) marketplace in the nation, according to a report by gaming media outlet Kyunghyang Games. The collaboration aims to foster various initiatives, including the integration of blockchain wallets and the exploration of web3 business opportunities.Photo by Mariia Shalabaieva on UnsplashAccess to Pala’s servicesPala offers a reliable secondary trading environment by verifying smart contracts for NFTs on Klaytn, Ethereum, and Polygon. This Korean NFT marketplace supports multiple digital wallets such as Klip, MetaMask, Kaikas Mobile, and D’CENT. As part of the agreement, Galaxia Metaverse’s Galaxia Wallet will also be supported by Pala, allowing users of the Galaxia Wallet to access Pala’s services.Galaxia Wallet, a user-friendly wallet, currently supports GXA, ETH, and KLAY, providing blockchain services related to NFTs and DeFi. The partnership with Pala is anticipated to strengthen Galaxia’s services and foster the expansion of the blockchain ecosystem.GXA-based economyGalaxia Metaverse aims to connect Galaxia Wallet with various external services to provide diverse user experiences, thereby expanding its blockchain platform. The company is dedicated to building a GXA-based economy that showcases Web3 projects.