Korean Web3 Enabler Participates in NFT.NYC 2023

Palau proceeds with Ripple to Phase 2 of PSC currency program launchThe Ministry of Finance of Palau has officially initiated the second phase of its Palau Stablecoin (PSC) program, a move aimed at expanding the digital ecosystem and enhancing user engagement.The launch was confirmed by Jay Hunter Anson, a cybersecurity consultant in Palau and adviser to the Ministry of Finance. Taking to the X social media platform on Friday, Anson outlined that “the Republic of Palau Ministry of #Finance seeks to expand accessibility and user participation, reaching a wider audience through educational initiatives.”PSC is a digital currency issued and managed by the Palau Ministry of Finance. It’s pegged to the United States dollar and operates on Ripple’s XRP Ledger. It first emerged that the authorities in Palau were collaborating with Ripple on this project back in July.Photo by Kurt Cotoaga on UnsplashBuilding on phase 1 successIn this next phase, Palau seeks to extend its collaboration with Ripple, leveraging Ripple’s central bank digital currency (CBDC) platform and technical expertise.The Ministry of Finance in Palau had previously announced the success of the first phase of the PSC program earlier this month. This initial three-month phase involved 168 volunteers from government employees who received 100 PSC each to use at local retailers participating in the program. Payments were made through mobile phones by scanning a QR code, and both retailers and volunteers provided positive feedback about their experience with the digital currency.Anson highlighted that the focus of the second phase of the PSC pilot program includes establishing new collaborations for marketing and sustainable development goals. Furthermore, the program prioritizes the development of a digital ecosystem and increased user engagement, with a strong emphasis on regulatory compliance.Anthony Welfare, CBDC Strategic Adviser at Ripple, shared his insights on the launch of the PSC pilot program’s second phase via social media. He underscored the advantages of blockchain-based digital currency, citing reduced transaction fees and the potential to address the environmental impact of money circulation. However, Welfare also acknowledged specific challenges, including the complexity of moving traditional currencies across Palau’s 340 islands and the high mobile data costs in the country.Welfare pointed out a notable feature of PSC, emphasizing that Palau residents can conduct offline transactions using this blockchain-based digital currency, even during power outages.Agile technological adoptionEarlier this month Ripple President Monica Long was featured by the New York Times in an article where she set out expectations for 2024. Long articulated that she believes that “people cannot maintain their faith in a financial system that relies on systems built decades ago to move money.”With the rise of cryptocurrency and blockchain technologies, it’s clear that our financial rails can and will be internet-native, in turn bringing greater accessibility and affordability to financial services for everyone,” Long added.Smaller nations like the Micronesian Republic of Palau have been more nimble in adjusting to the changes that Long refers to. This PSC stablecoin project demonstrates that reality.Palau is not alone. It emerged a few weeks ago that the Solomon Islands had entered into a collaboration with Japanese blockchain technology firm Soramitsu. As part of that project, a CBDC named Bokolo Cash has been unveiled as a proof of concept.

$100M Pyramid Scheme Linked to Prominent Chinese Filecoin ProjectA courtroom showdown currently playing out in the People’s Court of Pingnan County in northeastern Fujian province in China is laying bare an intricate pyramid scheme entwined with one of China’s flagship ventures in the Filecoin ecosystem.The lawsuit thrusts five defendants into the spotlight, alleging their orchestration of an expansive pyramid scheme under the guise of their enterprise, Shenzhen Space-Time Cloud Company. The operation is purported to have siphoned off millions of dollars, leaving in its wake a trail of financial wreckage.Photo by Traxer on UnsplashAggressive project marketingAccording to a local media report published on Monday, the saga began in June 2018 when Lai Mouhang and Lai Moujun established the Space-Time Cloud Company. Subsequently, co-defendants Hu and Liang joined the ranks in the following months. However, it wasn’t until September 2019 that Lai Mouhang escalated the company’s operations, leveraging the ipfs.cn domain to aggressively market and peddle investments linked to distributed storage technology and Filecoin’s intricate economic model.Central to Filecoin’s model is its block reward system, where miners validating new blocks receive Filecoin tokens (FIL) as a reward. In a stunning revelation, the prosecution claims that Lai Mouhang and his accomplices crafted a scheme mirroring this economic structure.Their brainchild, the filpool.io platform, served as a conduit for joint mining, masquerading as a storage server vending operation for FIL mining. This platform, intrinsically linked to Space-Time Cloud Company, allegedly formed the epicenter of the defendants’ fraudulent maneuvers.Almost 60,000 usersThe gravity of the scheme becomes evident when considering the staggering numbers: a reported 57,122 members registered on the filpool.io platform and an additional 143 partners on the bpool.io platform, a sibling project of Space-Time Cloud Company. These platforms collectively amassed a jaw-dropping RMB 607 million ($83 million), alongside RMB 62 million in diverse cryptocurrencies.The modus operandi of the defendants was rooted in enticing participants with rosy prospects of exponential profits. By acquiring a minimum of 8 terabytes of cloud computing power, individuals could attain bronze membership status or higher, unlocking the ability to further recruit participants. Unsurprisingly, the magnitude of returns correlated directly with the size of investments and the recruitment spree — classic hallmarks of a pyramid scheme.The prosecution contends that the defendants exploited these platforms as bait for participants, perpetuating the myth of high returns. This alleged deception led to substantial financial losses for many unsuspecting victims. Furthermore, these actions purportedly sowed discord and upheaval in both economic and social spheres, potentially transgressing criminal law boundaries.As the investigation into this convoluted case unfurls, its implications resonate far beyond China’s territorial confines. The intertwining of cryptocurrency, blockchain, and pyramid schemes punctuates the ever-evolving narrative of financial crime. The case highlights the importance of vigilance and regulatory scrutiny in an innovative industry that has more than its fair share of bad actors.

Binance Initiates Registration Process for AML Compliance in TaiwanGlobal crypto exchange Binance has set in motion the process of registering under Taiwan’s Money Laundering Control Act, the sole crypto-related regulatory framework currently established in Taiwan.In a confidential gathering on Tuesday, Taiwan’s Financial Supervisory Commission (FSC) conveyed to numerous domestic crypto service providers that Binance is in the process of applying for registration to ensure compliance with anti-money laundering (AML) regulations, according to a local media report.Photo by Thomas Tucker on UnsplashImportance of AML complianceTaiwan has mandated that virtual asset service providers (VASPs) adhere to its anti-money laundering statutes since the FSC introduced AML rules in July 2021. Outside of these measures, the cryptocurrency industry in the country remains largely unregulated.Speaking to The Block on Friday, an FSC official refrained from confirming whether Binance had already submitted the necessary documentation to register with the regulatory body. However, the official did emphasize the importance of offshore crypto platforms operating in Taiwan abiding by the local AML regulations.While Binance is not yet regulated in Taiwan, it has established a local entity named “Binance International Limited Taiwan Branch (Seychelles),” as per records from the Department of Commerce’s database. The registration particulars indicate that the Taiwanese government endorsed Binance’s company registration on May 12, 2023, with a registered capital of NT$30 million ($944,000) within Taiwan.Cooperation with law enforcementBinance has taken steps to cooperate with local law enforcement agencies to combat cybercrime in Taiwan. In June, the exchange revealed its collaboration with Taiwan’s Criminal Investigation Bureau, leveraging its expertise to assist over 200 Taiwanese law enforcement officers in addressing digital asset-related criminal activities.Damien Ho, Head of Global Partnerships at Binance, remarked in a blog post at the time:“As an increasing number of individuals in Taiwan show interest in cryptocurrency, ensuring a secure and comfortable crypto ecosystem for users becomes crucial.”Growing Asian influenceBinance’s influence is growing across Asia. This month, it officially launched operations in Japan after its acquisition of the local exchange Sakura Exchange BitCoin in November 2022, paving the way for regulatory oversight by the Japan Financial Services Agency (JFSA). Earlier this month, an investigative report carried out by the Wall Street Journal revealed that Binance is thriving in China in spite of the fact that crypto trading is a banned activity there.Regulatory guidelines anticipatedTaiwan’s FSC, which assumed the role of the primary regulator overseeing the crypto industry in March, is currently formulating comprehensive guidelines for trading and payments involving cryptocurrencies for VASPs.The FSC has disclosed plans to release the VASP guidelines by the end of September. Kevin Cheng, a Director at the Taiwan Fintech Association, revealed that the FSC intends to implement a stringent regulatory approach for crypto platforms in Taiwan, similar to its oversight of traditional financial institutions.Cheng noted: “The FSC plans to require VASPs to keep their own crypto assets separate from the clients’ crypto assets and to have accounting firms audit such assets every year.” However, Cheng highlighted the potential difficulty of this requirement, as many accounting firms might hesitate to serve crypto clients due to the specialized nature of crypto-related information.