Blockchain Experts from Ethereum, Solana, and More to Visit Seoul for Upbit D Conference

Terraform Money Trail Leads to Swiss BankAuthorities in both South Korea and the United States continue to advance their investigations into Terraform Labs, the Singapore-based company behind collapsed algorithmic stablecoin Terra USD (TUSD) and its South Korean CEO, Do Kwon, with the latest developments involving transfers made to a Swiss bank.©Pexels/Robert StokoeFollowing the moneyIn a lawsuit filed by the Securities and Exchange Commission (SEC) in the United States in February, the Commission claimed that Do Kwon and his company Terraform Labs transferred 10,000 Bitcoin to a Swiss bank. It now appears that the bank in question is digital asset banking specialist, Sygnum Bank.It’s understood that Do Kwon converted a large proportion of that Bitcoin into cash. According to Finbold, the Financial Securities Crime Joint Investigation Division at the Seoul Southern District Prosecutor’s Office has disclosed that it is following the digital asset trail to Switzerland in an effort to secure associated funds.LFG fundsThe funds are believed to have belonged to the LUNA Foundation Guard (LFG), an entity that was established with the objective of building reserves and safeguarding the USD peg of the Terra USD algorithmic stablecoin during volatile market conditions.Roughly 130 billion won, or $100 million, is being pursued, between digital assets and cash held within various Sygnum accounts. South Korean authorities had previously indicated that they were investigating transfers made by Do Kwon to a prominent Korean law firm. Earlier this week, they charged ten individuals connected to Terraform Labs with various offenses.During the press conference in which those charges were brought, the Seoul Southern District Prosecutor’s Office stated:”We have also confirmed that $100 million has been used in several places, not left in the Sygnum account as it is, and some transfers have been made to the Kim & Chang law firm account (at the attorney’s expense) and the remaining amount is about billions of won.”International complexityThis recent phase in the investigation is revealing the international nature of the case and the complexity that brings with it. Authorities in the United States and South Korea have submitted requests to have certain Sygnum Bank accounts frozen. Do Kwon and Terraform Labs are trying through the courts to have the SECs involvement dismissed on the basis that Terraform was a Singaporean company and Do Kwon a South Korean national, and on that basis they claim that the SEC lacks jurisdiction.Sygnum, being a Swiss entity will have to abide by what Swiss authorities instruct it to do relative to the Terraform-related funds held in accounts with the bank. Sygnum told Finbold that it couldn’t comment on whether it had received requests to freeze assets.The bank stated: “We can communicate that after the collapse of Terra in May 2022, on the basis of an official court order, Sygnum transferred more than 70% of the Bitcoin-sale FIAT proceeds into the escrow account of an international and to other reputable law firms.” It added that no Swiss or foreign authority has accused Sygnum of any wrongdoing.

Standard Chartered Muscling Into Asian Crypto SpaceUK banking giant Standard Chartered is making a concerted foray into the Asian crypto sector through its Singapore-based subsidiary, Standard Chartered Ventures.Photo by Kirill Petropavlov on UnsplashTargeting institutional businessThat’s according to a report by Nikkei Asia on Tuesday. It’s believed that the company is positioning itself as a trusted choice for institutional cryptocurrency clients amid the backdrop of digital token price volatility and recent upheavals in the industry. The move will pit the British bank directly against global crypto exchange Binance in key Asian markets, specifically Singapore and Japan.Rene Michau, the Global Head of Digital Assets at Standard Chartered, emphasized what he considers to be the bank’s unique advantage in the digital asset space, stating:“As regulated banks, we have a fairly deep infrastructure around risk, conduct compliance, and the activities that go along with crypto assets.”This solid infrastructure includes established risk frameworks, governance structures, and compliance tools that Standard Chartered is keen to bring into the cryptocurrency sphere, thus making it an attractive option for its clients.Zodia Custody and Zodia MarketsStandard Chartered’s substantial involvement in the cryptocurrency market is channeled through its majority ownership of Zodia Custody, responsible for safeguarding digital assets, and Zodia Markets, a crypto exchange tailored for institutional clients.Both entities have been making significant progress in bringing their offerings to market in recent months. Zodia Custody recently launched its services in Singapore, offering a secure solution for financial institutions to manage their crypto holdings. Last month it launched a crypto staking product targeted at institutional clients.In the same month, Zodia Markets achieved in-principle approval to trade as a broker-dealer in the United Arab Emirates. Zodia Custody has also been successful in the UAE, launching its crypto custodian service in Dubai in May.Japan and SingaporeThis concerted effort by Standard Chartered follows a broader trend where traditional financial institutions, such as DBS Group Holdings in Singapore, are entering the cryptocurrency market, capitalizing on the challenges faced by younger crypto players in proving their credibility.Binance rebranded its Binance Custody unit as Ceffu and expanded its offerings for corporate customers in Singapore. While Binance asserts the independence of Ceffu, the exact nature of their capital relationship remains undisclosed.A parallel competition is unfolding in Japan, where Binance Japan has entered the market and Standard Chartered’s Zodia Custody has formed a joint venture with SBI Digital Asset Holdings, targeting institutional clients.While Standard Chartered has achieved a lot through its crypto-focused subsidiaries in a short space of time, there’s always room for improvement. In June, Hong Kong’s banking regulator singled out Standard Chartered alongside HSBC, appealing to both banking groups to make greater efforts to bank crypto clients within the Chinese autonomous territory, as it looks to compete with Singapore in becoming a regional crypto hub.The cryptocurrency sector has witnessed increased scrutiny as virtual currencies like Bitcoin and Ether have gained popularity. The rise of digital token exchanges, each vying for custody of assets belonging to investors who have embraced cryptocurrencies, has sparked concerns about corporate governance and security.Giants in traditional finance, like Standard Chartered, are stepping in to offer institutional investors a safer path to engage with virtual assets while leveraging the trust associated with established brands.

A legislator in the Philippines has put forward a bill that, if passed and enacted, would see the Southeast Asian country establish a Bitcoin reserve consisting of 10,000 BTC. The proposed bill was filed with the House of Representatives as House Bill 421. Its proposer is Congressman Miguel Luis Villafuerte, a representative of Camarines Sur’s 5th district since 2022. Villafuerte also served as governor of the same province on two occasions, gaining recognition for becoming the youngest individual to assume the governorship in the Philippines.Photo by Michael Förtsch on UnsplashDrawing on developments overseasPrefacing the bill with an explanatory note, Villafuerte draws on developments related to Bitcoin in the United States. He drew attention to U.S. Federal Reserve Chairman Jerome Powell having referred to Bitcoin as “digital gold,” while pointing to a bill in the U.S. proposed by Wyoming Senator Cynthia Lummis to create a strategic Bitcoin reserve in the U.S., with the support of U.S. President Donald Trump. The bill itself, if passed and enacted, would provide a mandate to Banko Sentral ng Pilipinas (BSP), the country’s central bank, to acquire 2,000 BTC on an annual basis over a period of five years. According to Villafuerte’s proposal, that would result in the Philippines amassing a reserve of 10,000 BTC. 20-year minimum holding periodFollowing the achievement of this accumulation, the bill sets out that the leading digital asset would be locked in trust for a period of 20 years for the benefit of the country. A provision is included to establish a procedure that would enable the purchase schedule to be adjusted if a need arose to do so due to prevailing market conditions. Upon completion of the 20-year holding period, the proposed legislation calls on the central bank to present a report to Congress with recommendations as to whether Bitcoin should continue to be held or if some of the holdings should be sold off on a gradual basis. Following the expiration of that initial 20-year period, the governor of the central bank cannot recommend the selloff of more than 10% of the holding over any two-year period. Proof of reservesIn terms of sovereign nations, an early mover with regard to Bitcoin has been El Salvador. It became the first nation to establish Bitcoin as legal tender, while also establishing a Bitcoin reserve. However, the Central American nation has been criticized with regard to a lack of transparency surrounding that reserve. In the case of Villafuerte’s bill, the proposed legislation includes a requirement for the central bank governor to establish a system of quarterly proof of reserve attestations. It calls for attestations to be performed by an independent third-party auditor with expertise in auditing digital assets.The proposal comes as a number of nations are understood to be exploring the establishment of a strategic Bitcoin reserve. In April, a parliamentarian in Sweden proposed adding Bitcoin to the Nordic nation’s foreign exchange reserves. The Swedish parliament is set to debate the notion of a Bitcoin reserve next month. Meanwhile, Switzerland’s central bank has reportedly gained exposure to Bitcoin through a $253 million shareholding in Bitcoin treasury firm Strategy.