Ripple scores DFSA license approval in Dubai

Korea’s FSS Seeks to Protect Investors from Crypto Exploit LossesLee Bokhyun, Governor of the Korean Financial Supervisory Service, said the agency will seek to protect investors from losses resulting from cryptocurrency exchange exploits, according to Korean newspaper Donga Ilbo.©Pexels/RODNAE ProductionsEfforts to enact legislationWhile delivering a congratulatory speech at a forum co-hosted by Donga Ilbo and its subsidiary broadcasting company Channel A on Wednesday, Lee underlined that the agency will be committed to enacting legislation that obligates crypto exchanges to be held accountable for customer asset losses caused by hacks.He explained that amidst a continued crypto winter triggered by multiple failures, such as the collapse of the stablecoin Terra last year, cases of security vulnerabilities are subsequently occurring.Cold wallet requirementsIn response to this situation, financial authorities and the National Assembly are collaborating on legislation that would require crypto exchanges to store a portion of their custody assets in cold wallets, which are disconnected from the Internet, or face liability for damages resulting from hacks.A February report from blockchain data platform Chainalysis showed that losses to crypto hacks last year amounted to $3.8 billion. Earlier this month, Korean crypto exchange GDAC suffered an exploit of 20 billion KRW (~$15 million).Lee said the agency will work with the financial industry to bolster the fraud detection system and build an immediate response system that prevents uncanny transactions when abnormalities are detected. These efforts are to curb the rise in financial crimes, which followed the growing popularity of remote banking services.Experts’ inputsAt the event held to discuss the protection of consumer information in the digital age, senior researcher Kim Gap-rae at Korea Capital Market Institute said that a law should be introduced to penalize unfair practices, such as market manipulation and use of undisclosed information, in the virtual asset market.Lee Joo-hwan, head of the information security management division at Hana Bank, suggested the approach used in the US, which is recovering ill-gotten gains from financial crimes to compensate victims.Kang Byung-hoon, a professor who teaches cyber security at KAIST, anticipated that the financial industry would accelerate the adoption of confidential computing, a highly secure system, to which even administrators have limited access.

As the cryptocurrency market’s sluggish performance stretches into another year, South Korean investors have largely engaged in a wait-and-see approach. According to local media outlet Dailian, users are now checking prices only occasionally rather than trading actively, a shift evidenced by sharp declines in engagement metrics at the country’s two dominant exchanges, Upbit and Bithumb.Photo by NordWood Themes on UnsplashHigh retention, low activityData from Mobile Index reveals a stark contrast between user retention and actual activity. Throughout 2025, monthly active user (MAU) levels remained relatively stable—Upbit recorded as many as 4.7 million MAUs, while Bithumb reached approximately 2.7 million at its peak. This suggests that while the market downturn has dampened enthusiasm, it has not driven users to exit the ecosystem entirely. However, the time users spent on these platforms plummeted as liquidity dried up. In January 2025, ample market liquidity drove aggressive trading behavior; Upbit users spent an average of 7 hours and 30 minutes on the app during the month. By December, that figure had crashed to just 2 hours and 30 minutes—a 66.4% decline. Bithumb experienced a similar contraction, with average monthly usage falling from 233 minutes in January to 120 minutes in December. Aggregate usage followed the same downward trajectory. On Upbit, total monthly time spent across the user base fell from 35.66 million hours in January to 10.54 million hours in December. Bithumb saw total hours drop from 10.63 million to 4.65 million over the same period. The altcoin freezeThis reduction in screen time correlated directly with collapsing trading volumes. Upbit’s daily trading volume shrank from approximately 270 trillion won ($187 billion) in January to 52 trillion won ($36 billion) in December. Bithumb saw a proportional decline, dropping from 85 trillion won ($59 billion) to 24 trillion won ($17 billion). Analysts attribute this trend to a capital concentration in major assets like Bitcoin, which hit a new all-time high in October. Conversely, altcoins—which typically account for a disproportionately large share of trading volume in South Korea—failed to spark a rebound. Despite aggressive listing strategies—Upbit listed 73 new tokens and Bithumb added 156 last year—the influx of new assets failed to prompt a broader rally. One industry expert noted that none of the newly listed tokens managed to stand out, adding that the decline in Bitcoin prices later in the year further soured sentiment toward altcoins. The expert also highlighted that stronger performance in traditional asset classes, including U.S. and South Korean equities and gold, drew capital away from the crypto sector. However, another analyst offered a less pessimistic interpretation, suggesting that 2025 was not a year of investor exodus but rather one of dormancy. Investors chose to stay on the sidelines due to a lack of clear profit opportunities, implying that a resurgence in altcoin momentum could restore trading activity. Institutional giants push forwardDespite the retail lull, traditional financial institutions are actively exploring the sector, positioning themselves for future utility. Last month, BC Card signed a memorandum of understanding with U.S.-based exchange Coinbase to test USDC payments at South Korean merchants. The pilot program aims to integrate Coinbase’s Base blockchain wallets with BC Card’s QR payment infrastructure. Simultaneously, the broader card industry is preparing for the second phase of crypto legislation, which is expected to focus on stablecoin regulation. Nine credit card companies—including Samsung Card, Shinhan Card, and KB Kookmin Card—plan to form a task force this month under the Credit Finance Association (CREFIA). This initiative will focus on building an end-to-end system for stablecoin-based card payments and merchant settlements, including pilot tests for stablecoin-linked debit cards usable at standard payment terminals. Investment interest also remains alive in the corporate sector. Mirae Asset Financial Group is reportedly considering acquiring Korbit, the country’s fourth-largest exchange, through its subsidiary Mirae Asset Consulting. Market observers estimate the potential deal could be valued at up to 140 billion won ($97 million). 

Indonesia Embraces XRP, ADA as Tradable Crypto AssetsIn a significant move towards cryptocurrency acceptance, the Indonesian government has taken a momentous step by including a range of digital assets, including XRP and ADA, in a recently published regulatory document.Photo by Nick Agus Arya on Unsplash501 digital assetsThe document, published earlier this month, comprises an extensive list of 501 cryptocurrencies that are eligible for trading within the country. Unsurprisingly, BTC and ETH feature on the list. Other notable cryptocurrencies that have been listed include SOL, LTC, DOT, SAND, and UNI. This development is seen as a positive stride towards wider crypto adoption and holds the potential for broader use of all of these assets. In the case of XRP, it provides it with greater potential to become a viable means of payment within the region in the future, even though current regulation within Indonesia prohibits payments for goods and services in anything other than the rupiah.Defining tradable assetsThe regulatory document, officially titled “Supervisory Body Regulation Commodity Futures Trading Number 4 of 2023,” signifies an amendment to the Trade Controlling Agency Regulations Commodity Futures Number 11 of 2022. Its main objective is to identify the assets that can be traded in the physical market of crypto assets within Indonesia.Colin Wu, a prominent Chinese reporter, shared this significant development on Twitter, sparking interest and discussions within the crypto community. The news has been met with a mix of optimism and caution from Indonesian individuals. One Indonesian YouTuber expressed enthusiasm for the country’s XRP-friendly stance and voiced hope for XRP to eventually attain legal tender status. However, others, like Twitter user Pondok Indah, urged the government to focus on regulatory oversight and taxation rather than direct involvement in the crypto business.This development takes place in the broader context of Indonesia’s evolving crypto landscape. According to a 2022 research report titled “The 2022 Global Crypto Adoption Index: Emerging Markets Lead in Grassroots Adoption ‘’ by Chainalysis, Indonesia ranked at the top among the 20 countries analyzed in terms of peer-to-peer (P2P) exchange trade volume. The country has demonstrated its active participation in the crypto market, with Indodax, the largest Indonesian exchange, adding support for FLOKI, an up-and-coming cryptocurrency, back in April.That said, as we’ve seen in many other jurisdictions, the development of regulation and policy relative to digital assets has not been without its hiccups. Last month, the governor of Bali warned the foreign tourists that flock to the Indonesian island that there would be consequences for those that flouted Indonesian law and used crypto as a form of payment for goods and services.Indonesia’s recognition of the potential benefits of digital assets demonstrates a path forward for other nations to follow. Providing regulatory clarity with regard to digital assets bolsters investor confidence but also opens doors for innovation and financial inclusion. In taking this approach, the Southeast Asian country is setting the stage through which digital assets can contribute to economic growth and technological advancement.