Korea’s financial regulator establishes dedicated units for crypto oversight

Hata Digital Sdn Bhd, the fifth licensed crypto exchange in Malaysia, has raised $4.2 million in a seed financing round. That’s according to a press release published by Cointelegraph on Oct. 22 on behalf of the company. The round was led by two blockchain and crypto-centric U.S.-based venture capital firms, Castle Island Ventures and Cadenza Ventures. Commenting on the development, Castle Island’s Nic Carter took to X, stating:”Excited to be coleading the seed for @hataglobal and joining the board. SE Asia is the #1 most active region for crypto adoption and we are pumped to see Hata build for the Malaysian market and beyond.” In further comments included within the press release, Carter complemented Malaysia and the overarching Southeast Asian region as being at the heart of blockchain adoption:“Malaysia and the broader SE Asia region is the global epicenter of blockchain adoption and we are excited to support the talented team at Hata in their support of this market. We believe Hata is well-positioned to win due to their differentiated product focus and regulatory approach.”  Photo by Vlad Shapochnikov on UnsplashAsian expansionThe company has said that it will use the funds in its efforts to expand its product offering and expand within the Asian region through the acquisition of more users. Reflecting upon the investment, Hata CEO David Low said that the company is “committed to creating a robust platform that empowers users in Malaysia and in the Asia region to navigate the digital asset market with confidence.” Other participating investors included Silicon Valley’s Plug and Play Tech Center, Singapore’s AP Capital, crypto accelerator Alliance.xyz and global crypto exchange Bybit. Bybit’s investment into Hata is not its first touch point with Malaysia as earlier this year the exchange business relocated some of its Chinese employees to the Southeast Asian nation.The other lead investor, Cadenza, is headed up by Max Shapiro alongside Kumar Dandapani. Shapiro gave his own take on Hata, stating:“We believe that Hata’s innovative approach and commitment to user engagement will drive the next wave of growth in Malaysia’s digital asset market. We are looking forward to working closely with the team as they navigate this evolving landscape.”  U.S. dollar trading pairsIn 2023 Hata received in-principle approval from the Securities Commission Malaysia (SCM), a local regulator. Earlier this year, it went one further and secured full approval from the regulator. The exchange relies upon offering trading pairs between crypto assets and the U.S. dollar. The platform currently supports in excess of 40 trading pairs.  In addition to the trading license it has acquired from SCM, Hata has also been licensed by the Labuan Financial Services Authority, the statutory body responsible for the development and administration of the Labuan International Business and Financial Centre. The Malaysian startup was established by three co-founders, one of them being a former executive at Luno, the crypto investment platform that operates across Africa, Southeast Asia and Europe. The exchange operates an affiliate program that enables platform users to participate in revenue sharing.

BC Card Launches Innovative Card Payment NFT ServiceSouth Korean credit card issuer BC Card announced Wednesday (local time) that it has launched a non-fungible token (NFT) issuance service linked to card payments — the first of its kind in the country — marking a significant step in the financial industry’s adoption of blockchain technology.Photo by rupixen.com on Unsplash“The digital finance market is an area of technology and imagination, and it will continue to grow in various ways,” said BC Card Director Lee Sang-jun. “We are pioneering the industry by introducing payment-linked utility NFT services for the first time.”Revolutionizing the use of NFTsTypically, NFTs are primarily used to prove the uniqueness of digital assets based on their non-replicability, but the card issuer has now integrated them into card payments. This service offers customers proof of payments in the form of NFTs along with various other benefits.BC Card has been preparing for the NFT market to pick up momentum since 2021. After rigorous internal testing, it first developed and opened its own NFT wallet dubbed “NFTbooc” on the private Ethereum network in April last year. Since then, the NFT wallet has been improved to be more user-friendly. Notably, it was integrated into BC Card’s financial platform PayBook in order to provide customers with a more convenient means to check their personal NFT holdings and participate in events.The credit card company also issued limited edition NFTs through NFTbooc to celebrate the 40th anniversary of its foundation last year, making them available for both customers and employees. Even during the ongoing crypto winter, the company has continued efforts to integrate NFTs into customer services by facilitating NFT-based payments and emphasizing their technological value.Boosting customer engagementTo celebrate the launch of the newest service, BC Card is also holding a special event for customers until December 31. Each participant will receive random missions, such as using their card within a specific time slot or at a specific store and engaging in a minimum number of transactions. Those who complete the challenges will be airdropped certificates of completion minted as NFTs after the event is closed with the chance to win cashback rewards of up to 100% of the amount of money that they spent during the challenge.The card issuer plans to hold two additional events, which will be outlined on the PayBook and NFTbooc event pages.The card company has also applied for three NFT-related patents this year, including one for issuing NFT receipts for secondhand transactions and asset certification NFTs that can be used to prove asset details in the event of a system failure at a given financial company.

South Korean Banks Adopt Blockchain for Streamlined Civil Servant LoansSouth Korea’s state-run financial organizations and banks are embracing blockchain technology to streamline the loan process for government employees and enhance loan management for banks.Photo by Shubham Dhage on UnsplashBlockchain-aided loan servicesIn a collaboration announced today at the Korea Federation of Banks (KFB) in Seoul, the Korea Financial Telecommunications and Clearings Institute (KFTC), the Government Employees Pension Service (GEPS), and four local banks are coming together to introduce blockchain technology in providing loan services specifically tailored for civil servants. The four participating banks are NongHyup Bank, Hana Bank, DGB Daegu Bank, and Gwangju Bank.Easier applicationAt present, civil servants are required to acquire a physical loan recommendation letter from the GEPS in order to apply for a bank loan. However, with the implementation of the new loan system, the GEPS will have the capability to issue blockchain-based letters, which can be obtained by civil servants either in-person or remotely at banks. This innovative approach will significantly simplify the verification process for these letters.Easier managementFurthermore, the manual exchange of loan-related information, such as repayment history and retirement details, between banks and the GEPS will be replaced by a more efficient system. The KFTC will take on the role of mediator, ensuring that any changes to this information are immediately reflected in real time. This streamlined approach will significantly enhance loan management for lenders.The launch of this service is scheduled for November this year, bringing about improved accessibility to loans for government employees. As the project progresses, other financial institutions are expected to join in, further enhancing the convenience of public servants. Additionally, these collaborating organizations will explore joint services aimed at providing the necessary support to stabilize the livelihoods of civil servants.