Korea considers legal recognition of virtual assets as trust assets for investor protection

Dubai Tempts AI and Web3 Enterprises With Subsidized Commercial LicensesDubai has demonstrated over the past twelve months that it has its sights set on becoming a regional hub for innovation, and we have further evidence of that strategy today with news that the city is now enticing artificial intelligence (AI) and Web3 businesses with an unprecedented offer — commercial licenses at a 90% subsidy.Photo by Aleksandar Pasaric on PexelsAI and Web 3.0 CampusThe focal point of this strategic move is the Dubai AI and Web 3.0 Campus, a burgeoning tech haven designed to foster innovation and collaboration. The campus recently unveiled its decision to heavily subsidize licenses for companies choosing to establish a foothold within the city, publishing details of the move on Monday via a press release. The issuance of these licenses falls under the auspices of the Dubai International Financial Centre (DIFC), underscoring the city’s determination to attract global talent and diverse investment opportunities.Mohammad Alblooshi, CEO of DIFC’s Innovation Hub, expressed confidence in the power of this initiative, stating:“We are confident that by granting these licenses, we will attract more global talent and investment to the region and create a culture of collaboration and innovation.”The Dubai AI and Web 3.0 Campus is geared up to cater to its prospective denizens, equipped with cutting-edge AI lab facilities, comprehensive training programs, essential hardware support, and accelerator initiatives.All enterprises setting their sights on seizing the opportunity presented by the 90% subsidized commercial licenses are required to follow an application process.Crypto trading licensingDubai’s tech evolution extends beyond AI and Web3 realms. The city has been proactive in granting operational licenses to cryptocurrency exchanges, marking yet another stride toward its tech-driven future.In a recent development, Nomura’s crypto arm, Laser Digital Middle East, secured an operational license from Dubai’s Virtual Asset Regulatory Authority (VARA). This coveted license empowers Laser Digital to provide broker-dealer services and manage virtual asset investments within the emirate.The progressive regulatory approach taken in Dubai has led to crypto exchanges such as Bybit, choosing the city as the location for its headquarters. In June MENA-focused digital assets platform BitOasis became the first crypto company to be awarded a broker dealer license by the Dubai regulator.The regulatory approach taken in Dubai is proving to be progressive yet firm. The emirate hasn’t made the mistake of opting for ineffective light touch regulation that would attract the wrong type of crypto startup.That’s evidenced by the response of VARA to the establishment of the OPNX exchange within its jurisdiction. OPNX was founded by Su Zhu and Kyle Davies, the founders of failed Singapore-based crypto hedge fund, Three Arrows Capital (3AC). VARA issued the business’ founders with a reprimand earlier this year, for establishing a crypto-related platform in Dubai without having obtained a crypto trading license.Dubai’s willingness to embrace innovative technologies, coupled with its strategic initiatives and progressive regulation, is propelling it to the forefront of the global tech revolution. As it beckons AI and Web3 pioneers with enticing subsidized licenses and facilitates the growth of the cryptocurrency ecosystem, Dubai is carving a unique niche as a hub of technology and innovation and exploiting the potential growth opportunity that presents as a consequence.

As Excitement for First US Spot Bitcoin ETF Intensifies, South Korea Still Faces Mountain to ClimbThe price of bitcoin has surged significantly as it recorded an 18% increase in the past week, spurred by mounting anticipation surrounding the US’ first spot bitcoin exchange-traded fund (ETF) propelled by asset management juggernauts BlackRock and Fidelity Investments — a threshold that had not been crossed in over a year. According to CoinMarketCap, bitcoin is trading in the upper $33,000 range as of 5 p.m. KST on Wednesday.Photo by André François McKenzie on UnsplashOngoing buildupThe approval of a spot bitcoin ETF — long rejected or delayed due to a plethora of reasons like the volatility of cryptocurrencies and their susceptibility to market manipulation — would in the long run open up the possibility for institutions to earmark bitcoin as a major asset that can be integrated into the sphere of traditional finance. This would make bitcoin easier to handle and increase its exposure to traditional investors. “The mere possibility of this development marks a significant shift in the market landscape,” said an unnamed executive at a Korean asset management company in a news article by South Korean news outlet Maeil Business Newspaper.BlackRock’s spot bitcoin ETF, the iShares Bitcoin Trust, was also listed on the US Depository Trust & Clearing Corporation (DTCC)’s website with the ticker symbol IBTC on Monday before it mysteriously disappeared the following day. It has since been relisted on the website. The listing is “all part of the process of bringing ETF to market”, as explained by Bloomberg’s senior ETF analyst Eric Balchunas via his X (formerly Twitter) account on Tuesday.Is a spot bitcoin ETF on the table for Korea?However, Korean experts believe that there are still numerous hurdles to overcome in order for a spot bitcoin ETF to settle in Korea. In particular, some question whether cryptocurrency platforms that offer custodial services can even be classified as exchanges. There is also the issue of bitcoin’s varying prices across different exchanges. Its current price on Upbit, the country’s largest crypto exchange, is in the KRW 45.9 million range as of 5 p.m. on Wednesday. Local financial authorities have reportedly expressed skepticism about bitcoin ETFs for these reasons, suggesting a murky future for this development becoming a reality in Korea.

China's Ministry of Industry and Information Technology (MIIT) has stepped into the realm of the metaverse by forming a working group tasked with setting standards for the burgeoning technology.Photo by Li Yang on UnsplashChinese corporate participationThe announcement, made on Friday, revealed that the working group would comprise representatives from the government, academic institutions and major corporations. In its statement, MIIT explained that the establishment of the metaverse working group aligns with the nation's emphasis on industrial development within the technology sector. Notably, the group will feature key figures from major Chinese tech corporations, including Huawei, Ant Group, ZET, Tencent, Baidu, NetEase, Sense Time and others. Public feedback on the selection of group members is invited until Feb. 18, although the specific areas of focus for the group are not detailed in the document. Initial in-roadsThe working group’s headline tech participants have all made some initial in-roads into metaverse technology. Baidu established its own metaverse project, XiRang, in 2021. Late last year it partnered with Qualcomm on the use of extended reality (XR) technology for use on a new metaverse platform. Huawei is paying attention to the promising metaverse space by building up a catalog of metaverse-related patents. Like Baidu, Tencent is focusing on developing XR technology with metaverse development in mind. Last year NetEase collaborated with a Chinese liquor brand to launch a winery-themed metaverse, while issuing NFTs linked to liquor bottles. Establishing metaverse standardsChina has been contemplating the formulation of metaverse standards for some time. In September 2023, MIIT advocated for the creation of a dedicated working group to address the ongoing challenges in metaverse technology. The government's overarching objective is to ensure the healthy and orderly development of the metaverse industry through standardization and guidance, reducing redundant investment costs and fostering collaborative forces for industrial development. Analysts from JPMorgan foresee a potential uptick in the value of Chinese tech stocks if the metaverse gains traction in the country. According to their analysis, Chinese web giants like Tencent and NetEase stand to benefit significantly from metaverse development. Even non-web companies such as China Mobile, Sony and Agora could witness positive impacts should the technology gain widespread adoption. In fact, China Mobile led the development of a metaverse industry alliance in China in 2023. Regional developmentIn a December document, MIIT outlined plans to formulate strategy documents clarifying the development path of Web3.Last year, several local governments in China committed to the development of the metaverse industry. Sichuan, a province once known as a crypto mining hub, aims to reach a market size of 250 billion yuan ($35.1 billion) in the metaverse industry by 2025. Last May, the city of Zhengzhou announced policy proposals to support metaverse companies. The same month, the province of Henan established a $21.7 million fund to support metaverse-related projects. The following month, an initiative was established in Nanjing to nurture metaverse development. Additionally, Shandong province has plans to grow its metaverse-related initiatives to achieve a market size of 150 billion yuan by 2025.