Dunamu reports Q3 slump amid interest rate hikes and economic slowdown

Japan’s Kumamoto City Bolsters Innovative Blockchain StartupsIn February this year, the city of Kumamoto in Japan organized the Kumamoto City Pitch 2022–2023, an event designed to bring together startups, established companies, and venture capital firms to promote business growth, according to Japanese tech media ASCII STARTUP.Photo by Christian Chen on UnsplashPromoting innovative startupsWith its inception in 2021, the Kumamoto City Pitch has been dedicated to promoting innovative startups with exceptional business models and unique technology. Its objective is to nurture local startups, build communities, and expand business sectors to strengthen the city’s growth.The event featured presentations from ten companies, including four that had been accepted into the Kumamoto City Acceleration Program “HIGO CANVAS.” The program offers support to projects based in Kumamoto that focus on areas such as cryptocurrency, blockchain, and virtual reality. Among the four accepted companies, two were involved in web3 and blockchain, while the others were working on medication guidance support through user-friendly pillboxes and digital transformation of manufacturing factory management.Web3-based marketing toolOne of the two blockchain-focused projects was Warashibe, a developer of Web3-based marketing tools. Its main product is a blockchain-powered marketing tool called “BADGE,” designed to enhance marketing efficiency.BADGE allows users to manage coupons and apps from retail stores in their own wallet. In turn, stores can reduce costs associated with producing and operating coupons and apps. Additionally, stores can analyze spending habits and other data from the wallet to identify target customers for promotions, enhancing the effectiveness of their marketing campaigns.Warashibe has achieved over 20 successful implementations, some of which involved leading manufacturing companies such as Daihatsu Motor, a major automobile engine manufacturer, and Ricoh, a renowned imaging and electronics company. Beyond coupon management, BADGE offers features like membership cards, credentials, and graduation certificates. The company is also currently developing services to analyze target consumers and manage advertising.Blockchain biz challengesIRISA is another startup exploring the blockchain sector. Initially, the company aimed to develop a social media platform incorporating blockchain games. However, the project changed direction due to challenges arising from the limited number of blockchain gamers and the blockchain oracle problem. The latter issue refers to the inherent limitations of blockchains in accessing data outside the network, also known as off-chain data.

Korea’s Legislative Research Body Suggests Expanding Blind Trust System to Include CryptoThe National Assembly Research Service (NARS) of South Korea last Friday issued a report emphasizing the need to broaden the scope of the country’s blind trust system for public officials. Currently, this system primarily covers traditional stocks, but the report highlights the necessity of extending its coverage to include cryptocurrencies.Photo by O-seop Sim on PexelsPublic Service Ethics ActUnder the existing Public Service Ethics Act, public officials holding a rank of 4 or higher within the finance department of the Ministry of Economy and Finance and the Financial Services Commission are mandated to either divest themselves of stocks linked to their official duties and responsibilities or transfer them into a blind trust if the total value of these stocks exceeds KRW 30 million (about $23,000).Blind trustA blind trust is a mechanism through which a public official transfers their stock holdings to a trustee. Subsequently, the trustee handles these entrusted stocks by exchanging them for other assets and overseeing their management, administration, and disposition. Importantly, the original owner of the stock, who is the public official, is barred from participating in these aspects of the trust and is also kept uninformed about the trust property’s status or details.Debate over expansionThe current policy confines the blind trust framework exclusively to stocks. Nevertheless, there is an ongoing debate advocating for the inclusion of other assets, such as virtual assets and real estate, within its scope. The rationale behind this argument is that these types of assets can also potentially give rise to conflicts of interest. However, counterarguments have been raised, expressing concerns that extending the blind trust to these assets could excessively limit the property rights of public officials. Consequently, as of now, this broader application has not been implemented.Comparison with the USThe Korean blind trust system was inspired by the United States’ Ethics in Government Act of 1978, which does not limit the types of assets that can be included in a blind trust. In the US, a blind trust can encompass not only stocks but also bonds, mutual funds, virtual assets, and real estate. In light of this, the report recommends the expansion of the blind trust system to encompass virtual assets and real estate. This step is proposed to prevent conflicts of interest among public officials pertaining to a wider array of asset types.Enhancing trustee discretionMeanwhile, NARS also argued for broadening the trustee’s discretion in trust management to render the system more reasonable. This stems from the concern that the existing uniform property sale approach could lead public servants to incur losses. NARS has proposed potential solutions, such as extending the time limit for property sales or mandating the sale of only a portion of the assets, as viable options to address this issue.

Foblgate Strengthens Anti-Cybercrime Measures with Chainalysis SolutionsKorean crypto exchange Foblgate last Thursday announced its adoption of virtual asset data analysis solutions from blockchain data analysis firm Chainalysis, which has significantly enhanced its ability to combat illegal money laundering of virtual assets and cybercrime.“As crimes involving virtual assets continue to rise, the introduction of Chainalysis’ solutions empowers us to address a wider range of diverse and advanced virtual asset-related crimes,” said Ahn Hyun-jun, CEO of Foblgate.Photo by GuerrillaBuzz on UnsplashChainalysis’ specialized solutionsChainalysis provides data, software, services, and research to governmental agencies, exchanges, financial institutions, insurance companies, and cybersecurity firms all over the world, aiding in solving high-profile criminal cases and expanding consumer access to cryptocurrency safely.Foblgate will use two of its products, Know Your Transaction (KYT) and Reactor, to strengthen safety and security measures on its exchange platform.KYT is a cryptocurrency compliance product that combines blockchain technology, a simple interface, and a real-time application programming interface (API) to map data, monitor crypto transactions, and provide safe access to decentralized finance.Meanwhile, Reactor is an investigation software that connects cryptocurrency transactions to real-world activity. This allows users to visualize cryptocurrency flows and trace transactions across blockchains.Both solutions automatically detect patterns of potential high-risk activities then issue alerts accordingly and link numerous addresses to actual entities (individuals or organizations associated with virtual asset wallet addresses.)By integrating this technology, Foblgate can restrict deposits and withdrawals made by high-risk entities, including unregistered overseas virtual asset exchanges. It can also ensure transparency in virtual asset trading within its domain.Taking security measures a step furtherFoblegate is also taking other measures to further earn trust as a secure exchange by bolstering its countermeasures to cybercrime. Notably, it has established a partnership with GTOne, a company specializing in governance and compliance solutions including anti-money laundering (AML). Through this collaboration, it will be able to thoroughly comply with the Act on Reporting and Using Specified Financial Transaction Information.This strategic move towards innovative blockchain data analysis solutions not only underscores Foblgate’s commitment to regulatory compliance and user security but also a proactive stance against emerging challenges in the realm of virtual assets and cybercrime.