Mt. Gox edging closer to BTC payouts sparks market fears

SK C&C to provide ChainZ Security Token service for Hana SecuritiesSK C&C, a comprehensive digital solutions provider and the affiliate of South Korean conglomerate SK Group, announced Tuesday (local time) that it will provide the blockchain-based ChainZ Security Token service to Hana Securities for the securities firm’s construction of a security token system.Security tokens enable the conversion of assets such as real estate, art and carbon credits into digital tokens. These digital representations open up opportunities for retail investors to make fractional investments in assets that were previously beyond their reach due to high minimum investment requirements.Hana Securities’ involvement in security tokens emerged when its parent company, Hana Financial Group, joined a consortium called the Next Finance Initiative (NFI) in June to expand the security token ecosystem. In this collaborative effort, Hana Securities is set to develop infrastructure that will enable the establishment of extensive security token services. This infrastructure will support functions such as the issuance, distribution and procurement of security tokens.Photo by Shubham Dhage on UnsplashSecurity tokens on EthereumThe ChainZ platform allows the creation, issuance and trading of tokenized assets on the Ethereum network by simply calling an application programming interface (API). The company explained that being compatible with several Ethereum standards, including ERC-20, ChainZ enables users to create diverse token-related services with just a few clicks.SK C&C will leverage the ChainZ platform, which supports distributed ledger services, to manage token offerings and allocations. Additionally, the company will offer security token-related services, which will include processing investor orders and facilitating the buying and selling of tokens.Choi Cheol, Head of SK C&C’s Web3 and Convergence Group, said that the security token system of Hana Securities will lay a foundation for securities firms to adopt security token services and engage in business collaborations with each other. According to Choi, SK C&C is committed to providing secure trading services for security tokens, catering not only to securities companies but also to a broader range of enterprises and general investors. The tech company is also planning to take an active role in NFI and other consortiums with securities firms as a part of its strategy to enhance these efforts further.

Taiwan Proposes New Crypto Business CategoryWith regulation having trailed the crypto innovation, more recently it seems like every day brings further developments, with the latest installment seeing Taiwan take a significant step forward. Officials in Taipei are proposing the classification of crypto regulations within their own novel business category.Photo by Jack Brind on UnsplashFostering self-regulationThe move aims to potentially allow cryptocurrency-related companies to establish industry associations, ultimately fostering the creation of self-regulatory guidelines. The Ministry of Economic Affairs, in a recent announcement, unveiled its draft amendment to the Standards of Classification of Commercial Group regulations. This proposed amendment centers on the inclusion of a distinct category for digital asset services.An official from the economic ministry informed The Block that the freshly introduced business category outlines the scope of operations within the cryptocurrency sector. This encompasses various activities, such as cryptocurrency to fiat or digital token exchanges, facilitating cryptocurrency transfers, offering services for crypto storage and management, and providing assistance related to cryptocurrency issuance or sales.The official further elaborated that cryptocurrency firms will be permitted to form industry associations once the proposed business category is successfully incorporated into the relevant regulations. Seeking public input, the ministry anticipates finalizing the amendment in collaboration with the Ministry of the Interior in either mid- or late-October.Encouraging trade associationsBy allowing the establishment of industry associations, cryptocurrency companies can proactively devise self-supervisory rules that address industry-specific challenges and concerns. This move is anticipated to bolster transparency, security, and responsible conduct within the cryptocurrency ecosystem.Taiwan’s approach to virtual asset services providers (VASPs) has mandated compliance with anti-money laundering laws since the implementation of anti-money laundering regulations by the Financial Supervisory Commission in July 2021. However, the overall industry remains relatively unregulated within the country.Binance, the world’s largest cryptocurrency exchange, has recently embarked on the process of obtaining registration for anti-money laundering compliance under the FSC.Regulatory guidelines being draftedAs the regulatory landscape evolves, Taiwan’s FSC, which assumed its role as the principal regulator overseeing the crypto industry in March, is actively formulating comprehensive guidelines. These guidelines will cover trading and payment aspects associated with cryptocurrencies for VASPs.An FSC official revealed that the agency plans to unveil the VASP guidelines by the end of September. It’s understood that the guidelines will comprise thirteen regulatory principles. It’s believed that the issuance of crypto assets will be permitted but that stablecoin issuance will be prohibited. One prerequisite for the issuance of digital assets will be a requirement to accompany that issuance with a comprehensive whitepaper, detailing fundamental and necessary information that investors can review, relative to the token offering.Taiwan’s proposition of a novel business category signifies a pivotal move towards enhanced self-regulation and industry cohesion within the cryptocurrency sector. As the regulatory framework takes shape, the introduction of self-regulatory guidelines is poised to contribute to the responsible growth of the cryptocurrency industry in Taiwan.

Japan’s Financial Services Agency (FSA) has moved recently to address concerns related to peer-to-peer (P2P) transactions while in a separate development, the country’s GameFi community is calling for regulatory change to enable greater liquidity. The two distinct developments both relate to getting the balance right in terms of crypto regulation from the perspectives of regulators and lawmakers and crypto sector entrepreneurs and participants.Photo by Manuel Cosentino on UnsplashAddressing concernsIt emerged last week that the FSA had proposed a number of measures to safeguard users against “unlawful transactions,” causing alarm that any such moves would inhibit the P2P transactions market. Responding to a query from Cointelegraph, the FSA elaborated that its recommendation does not encompass "transactions from one individual to another." Instead, it aims to bolster measures against illicit money transfers, particularly instances where an individual deposits cash from their bank account into an account belonging to a crypto asset exchange service provider. The regulator clarified that under the new recommendations, banks would intercept suspicious transactions where the sender seeks to alter their name for the purpose of depositing funds into the crypto platform. The FSA outlined that this situation arises where a fraudster convinces an innocent exchange user to effect the name change, so that exchange rules can be circumvented and the fraudster can receive funds from the scam victim. According to the FSA, numerous financial institutions have already implemented these measures, although the agency has not received any reports of specific cases raising concerns regarding crypto asset markets. Notably, the FSA emphasizes that its recommendations are not universally mandated for all financial institutions, with banks expected to devise and implement measures tailored to their specific circumstances. Solving crypto market liquidity issuesWith that clarification, it appears that the measures won’t have the negative impact on P2P crypto markets as many market participants originally feared. Meanwhile, in a distinct development, Japan's blockchain gaming community has approached the Liberal Democratic Party (LDP) to seek assistance in bolstering liquidity within Japan's crypto asset market. Taking to the X social media platform on Wednesday, Ryo Matsubara, director of Oasys, a GameFi blockchain, outlined that he had visited the LDP's digital society promotion headquarters on behalf of Japanese blockchain gaming projects to raise concerns about stringent regulations impeding liquidity in Japan, which directly impedes the growth of the GameFi ecosystem. Matsubara advocates for regulations that incentivize safe cryptocurrency investment, positing that increased liquidity, marked by a surge in buyers and sellers, could result from such measures. Oasys intends to continue collaborating with the government to enhance Japan's global competitiveness in the Web3 market, with Matsubara expressing confidence in Japan's potential to reclaim its illustrious gaming legacy on Web3. While Japan initially harbored skepticism toward crypto adoption, its stance has softened in recent times. Matsubara acknowledged the positive impact of a recent crypto-related tax reform which was enacted in December. In September 2023, the Japanese government commenced planning to permit startups to raise public funds through crypto asset issuance. That bill was approved last week and now goes forward to the Japanese parliament for further deliberation. These recent developments demonstrate that Japan is navigating regulatory complexities as it seeks to balance innovation with consumer protection in the burgeoning crypto space.