Japan Progresses With Web3 White Paper Release

LINE Xenesis Introduces AVA, an Entertainment NFT PlatformLINE Xenesis, a blockchain affiliate of Tokyo-based messaging app provider LINE Corp, announced on Wednesday the launch of AVA, an entertainment non-fungible token (NFT) platform aimed at both Japanese and international users.Photo by Choong Deng Xiang on UnsplashDOSI servicesFollowing the integration of LINE BITMAX Wallet into DOSI Wallet in March, LINE Xenesis has been striving to provide DOSI services for its users in Japan. DOSI Wallet enables users to manage a range of digital assets, including NFTs. As of April, the company has rolled out two new services: DOSI Citizen, a membership program, and AlphaCrewz, an app allowing users to create 3D avatars utilizing NFTs.NFTs known as CrystalsLaunched on May 9, AVA is the third service designed to engage LINE Xenesis users in Japan. The platform employs NFTs, known as Crystals, to connect artists and fans, which are divided into three categories: normal, rare, and unique, each offering different benefits.TREASUREBefore AVA’s debut, a March 27 airdrop event featuring the world-renowned South Korean boy band TREASURE attracted over 7,000 participants. With the launch of AVA, 7,000 TREASURE Crystals have been made available for purchase.TREASURE Crystal holders can enjoy four perks: storing exclusive videos in Crystals, receiving autographed trading cards and polaroid pictures, earning a portion of Crystal revenues for promoting TREASURE locally and on buses, and having the opportunity to submit inquiries and requests directly to the group. For the last benefit, TREASURE will respond to the most popular questions, as decided by user votes, with voting influence determined by the type of Crystal held.ATEEZThe second NFT collection on AVA will highlight another K-pop boy group ATEEZ, with ATEEZ Crystals available for purchase from May 16 to 31. An airdrop event with registration open until May 15 will precede the sales, giving users who complete missions a chance to win one of 600 normal ATEEZ Crystals. AVA will also host an event where ATEEZ members will answer eight selected questions submitted by fans.This fall, AVA will introduce a virtual space called Playground, enabling users to trade Crystals with each other and interact with artists through various activities.Additionally, participants in the ATEEZ airdrop event who fulfill tasks on social media will have a chance to enter a lucky draw for one of 30 exclusive ATEEZ photo card sets.

Zodia Custody Launches Crypto Custodian Service in DubaiZodia Custody, a subsidiary of British multinational banking services firm Standard Chartered, has entered the Middle Eastern market, bringing its crypto custody service to Dubai.In a tweet on Thursday, the start-up announced that its parent company Standard Chartered has signed a memorandum of understanding (MoU) with the Dubai International Financial Centre (DIFC) to launch digital asset custody services in Dubai, powered by Zodia Custody.The move will only go ahead once it has been approved by Dubai’s regulator, the Virtual Assets Regulatory Authority (VARA). At the MoU signing ceremony, Standard Chartered CEO Bill Winters stated: “We see digital assets as an important part of the future of financial services and we are committed to investing in the infrastructure and talent necessary to be a leader in this space.”“The UAE [United Arab Emirates] has a well-balanced approach to digital asset adoption and financial regulation, making it an ideal first market for us to launch our digital asset custody proposition,” Winters added.With 54 years in the financial services arena, the UAE is already home to Standard Chartered’s operations in the Middle East and North Africa (MENA) region.SBI joint ventureIts London-based subsidiary has been busy. In addition to this expansion into the MENA region, in February the fledgling company entered the Japanese market. It achieved that by partnering with Japanese financial services conglomerate, SBI Holdings. The Japanese joint venture company is 51% owned by SBI, while Zodia holds the remaining 49% minority stake. At the time, Julian Sawyer, CEO of Zodia Custody, said that “partnering with SBI DAH ensures the joint venture will offer gold-standard crypto asset custody services in Japan.”Capital injectionLast month, SBI Holdings stepped up its association with Zodia Custody by becoming the lead investor in Zodia’s latest funding round. Up until that point, Zodia had been supported largely by Standard Chartered. Northern Trust took a 10% stake with Standard Chartered accounting for the remaining 90% equity stake. Following that most recent funding round, SBI now moves up the rankings to become Zodia’s second largest investor.Zodia was founded in 2020 in tandem with a separately launched trading platform, Zodia Markets. Its objective was to offer a safe, trustworthy platform through which institutional clients could invest in crypto assets. As a UK-based entity, the firm is regulated by the UKs Financial Conduct Authority (FCA).Heightened digital asset developmentAuthorities in Dubai and within the UAE in general have been working hard in recent months with an eye towards making the country, and particularly its Dubai and Abu Dhabi Emirates, a hub for digital asset-related business. Regulators in Dubai, Abu Dhabi, and at a national UAE government level, have been progressing in terms of getting a workable digital assets regulatory framework and licensing regime in place.With the Dubai Fintech Summit having taken place earlier this week, there were further developments still relative to digital asset business in the UAE. On Monday, Coinbase CEO Brian Armstrong was in attendance alongside his executive team. Just like Armstrong, Ripple CEO Brad Garlinghouse was also a keynote speaker at the event. Both complemented the UAE on its regulatory approach to crypto off the back of both of them having been sharply critical of the regulatory approach in the United States. Armstrong indicated that his company is interested in establishing a base in Abu Dhabi while Garlinghouse confirmed that Ripple is opening an office in Dubai.Photo by Aleksandar Pasaric on Pexels

Korean Banks Impose Crypto Exchanges to Maintain a Reserve of at Least 3B KRWIn a significant step towards regulating the cryptocurrency market and ensuring the safety of virtual asset users, South Korea’s Federation of Banks (KFB) has collaborated with financial authorities and virtual asset exchanges to establish the “Guidelines for the Operation of Real Name Accounts for Virtual Assets.” The KFB, as a group of banks and financial institutions, facilitates cooperation between its members and promotes the development of the financial industry.Photo by rc.xyz NFT gallery on UnsplashThe guidelines come as a response to the increasing need for stronger money laundering prevention measures and standardization in the crypto industry. The first step towards this was taken in 2018 when crypto exchanges became obliged to establish a real name account at a bank in order to provide Korean Won (KRW) deposit and withdrawal services to their customers. Currently, the exchanges that won such bank accounts are Upbit, Bithumb, Coinone, Korbit, and Gopax.However, this policy brought with it a set of challenges, including differing practices among various cryptocurrency exchanges, leading to inconveniences for users. Additionally, varying user protection measures, such as reserve requirements, caused confusion in the market.3 billion KRW in reservesTo address these issues, the new guidelines aim to clarify how banks operate cryptocurrency real-name accounts and bolster overall security. One of the key changes is the requirement for crypto exchanges to maintain a reserve of at least 3 billion KRW ($2.36 million). This reserve fund serves as a precautionary measure to address potential financial losses resulting from hacking incidents or system failures at crypto exchanges.Furthermore, the guidelines mandate banks to manage deposit and withdrawal limits by categorizing user accounts into limited and normal accounts. A limited account will not be converted to a normal account, which grants higher deposit and withdrawal limits, until the user’s transaction purpose and the source of funds are verified.Enhanced due diligenceIn addition, banks will perform annual enhanced due diligence (EDD) for individual account holders. This thorough review will encompass users’ identification, transaction purposes, and the origin of funds.User asset segregationTo safeguard users’ funds, crypto exchanges will be required to ensure that customer deposits are held separately or placed in trust. Regular due diligence at crypto exchanges will also be conducted by banks, with mandatory visits occurring at least once a month. Moreover, third-party services will be engaged to perform independent due diligence every quarter on crypto exchanges, providing an additional assessment of their operations.The official launch of these new guidelines is scheduled for January of next year. However, the requirement of depositing at least 3 billion KRW will come into effect earlier, starting in September of this year. Additionally, the implementation of guidelines for expanding deposit and withdrawal limits is anticipated in March of next year.