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SOUTH KOREA’S STRICT LAWS ON CRYPTO EXCHANGES COME INTO FORCE
The new regulations issued by South Korea’s watchdog to protect user assets on crypto exchanges went into effect on July 19.
The much-talked-about new regulations from South Korea’s financial security regulator, designed to protect users buying and storing crypto assets with virtual asset service providers (VASPs), came into force on July 19.
Titled the “Virtual Asset User Protection Act,” VASPs must take several steps to ensure the protection of user’s crypto, according to a July 17 statement from South Korea’s Financial Services Commission (FSC).
These include:
1. taking out insurance against hacking and malicious attacks against the user’s crypto assets,
2. keeping the customer’s crypto assets separate from the exchange’s assets, and
3. a requirement to keep customer deposits “safely kept in banks.”
VASPs are also required to maintain a certain level of due diligence to prevent money laundering on their platforms and must report any suspicious transactions to the regulator.
“VASPs should maintain a surveillance system for suspicious transactions at all times and immediately report suspicious trading activities to the Financial Supervisory Service (FSS),” it stated.
“After going through investigations by the financial and investigative authorities, those who are found to have engaged in unfair trading activities may be subject to criminal punishment or penalty surcharge,” it added.
Concerns among South Korean crypto exchanges
Crypto exchanges in South Korea have recently voiced concerns that the rules would result in them simultaneously delisting a mass of tokens.
On July 3, Cointelegraph reported that a group of 20 South Korean crypto exchanges will review a total of 1,333 cryptocurrencies over the next six months as part of the new crypto user protection laws, meaning “the possibility of mass delisting occurring all at once is unlikely,” according to the Digital Asset Exchange Alliance (DAXA).
Meanwhile, South Korea’s ruling party, the People’s Power Party, officially proposed delaying the implementation of the country’s tax on crypto trading profits.
On July 12, the party submitted the proposal and noted that current sentiment toward crypto assets was deteriorating. The description stated that rapidly imposing taxes on virtual assets is “not advisable at this time.”
@ Newshounds News™
Read more: Crypto Telegraph
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CDP ISSUES DIGITAL BOND ON POLYGON BLOCKCHAIN USING NEW ITALIAN LAW
Italy’s Cassa Depositi e Prestiti Spa (CDP) issued a €25 million digital bond on the Polygon public blockchain, which was underwritten by Intesa Sanpaolo as the sole investor.
The issuance is part of the European Central Bank’s (ECB’s) wholesale DLT settlement trials.
Hence, the payment was made in central bank money using the Bank of Italy’s TIPS Hash Link solution, which provides connectivity between a DLT and the TARGET2 system for wholesale payments.
CDP is a development bank majority owned by the Ministry of Economy and Finance.
The settlement of a public blockchain bond issuance with central bank money wasn’t the only novel aspect of the digital bond. It is also the first to use Italy’s ‘Fintech decree’ law.
This was Italy’s enactment of the DLT Pilot Regime, but also applies to DLT issuances that are not part of the Pilot Regime (like this one), provided they take some extra steps.
There must be a Digital Register maintained by a Digital Register Manager which is authorized by Consob, Italy’s securities regulator. The Register is a log of the real names and details of the owners of the securities.
“This transaction represents a significant step for CDP in capital market innovation through the pioneering adoption of blockchain technology for bond issues,” said Fabio Massoli, CDP’s Director of Administration, Finance, Control and Sustainability.
“The promotion of a new market ecosystem and the implementation of an innovative, efficient and secure market infrastructure will provide added value to issuers and investors alike, opening up new opportunities for other players, including SMEs.”
Fintech Decree Digital Registers
The Digital Register is similar to Germany’s eWpG law. In both cases they support direct securities issuances and transactions without requiring central securities depositories (CSDs) or bank intermediaries. However, we believe Italy may have gone a step further because it allows issuers to be the Digital Register Manager for their own securities.
That’s the case here – CDP had the role of the Market DLT Operator and also the Consob authorized Digital Register Manager. But we believe this also applies where the issuer/manager is not a bank.
“We are particularly pleased to have been the first in Italy, together with CDP, to carry out an operation that is intended to be the point of reference for future issuers in a totally new legal and regulatory framework,” said Massimo Mocio, Deputy Chief and Head of Global Banking & Markets, IMI CIB Division of Intesa Sanpaolo.
A key goal of the ECB wholesale settlement trials is to test the interoperability between DLT networks and central bank money, both conventional and CBDC. Hence, the transactions involve delivery versus payment in most cases. However, CDP said the settlement for its digital bond was ‘same day’.
Meanwhile, the digital bond has a four month term. It was rated A-2 by S&P, F-2 by Fitch and S-2 by Scope.
@ Newshounds News™
Read more: Ledger Insights
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Silver (XAG) Forecast: Gold Divergence Widens; Is Silver Undervalued or Overextended?
Key Points:
—Silver prices struggle as gold reaches new heights. The widening gold-silver ratio suggests potential undervaluation of the white metal or gold overvaluation.
—Silver’s break below the 50-day moving average at $30.19 signals a technical breakdown. Sellers target $28.57, with further decline possible to $27.22-$26.60 zone.
—Weak Chinese manufacturing data raises concerns about silver’s industrial demand. This aspect contributes to silver’s underperformance compared to gold.
—Fed rate cut expectations drive precious metals. A 98% probability of a September cut may create a buy the rumor, sell the fact scenario for silver and gold.
—Asian physical demand for silver remains sluggish. Customers capitalize on high prices by selling existing holdings rather than making new purchases.
@ Newshounds News™
Read more: FX Empire
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NIGERIA EMBRACES BLOCKCHAIN NATIONAL INFRASTRUCTURE INITIATIVE GAINS MOMENTUM
Government Pushes for Data Security and Privacy
The Nigerian Federal Government’s initiative to develop an indigenous blockchain infrastructure has garnered substantial support from the National Blockchain Policy Implementation Steering Committee. Two weeks prior, the government revealed its plans to establish a homegrown blockchain, emphasizing the importance of data security and privacy in this endeavor.
Endorsement from Key Stakeholders
Chimezie Chuta, Chairman of the Committee, expressed strong approval of the initiative during a discussion with The PUNCH. He regarded the concept of a national blockchain infrastructure as a significant and positive step forward.
Chuta highlighted that other countries, including India, China, the UAE, South Korea, and Singapore, have already established their blockchain infrastructures, suggesting that Africa’s third-largest economy should not lag behind.
Comparative Analysis and Future Prospects
In comparing Nigeria’s blockchain aspirations to those of other nations, Chuta underscored the potential for significant advancements in data security, economic efficiency, and technological innovation. By establishing a national blockchain, Nigeria aims to join the ranks of countries that have successfully integrated this technology into their national frameworks.
Broader Implications for the Nigerian Economy
The push for a national blockchain infrastructure is a move that could bring benefits to the Nigerian economy. The implementation of such technology promises to streamline various sectors, improve transparency, and foster a more secure and efficient data management system. This could potentially attract foreign investment and bolster confidence in Nigeria’s technological capabilities.
Moreover, the development of a national blockchain could provide a platform for various industries to innovate and collaborate more effectively. By supporting smart contracts and offering a scalable and efficient infrastructure, the blockchain could facilitate new business models and drive economic growth.
Addressing Regulatory and Compliance Challenges
A consortium-based blockchain model, as advocated by Chuta, would also address regulatory and compliance challenges more effectively. By involving multiple stakeholders in governance, this model ensures that the blockchain operates within a framework that supports regulatory oversight and compliance, thereby enhancing its credibility and reliability.
Conclusion: A Strategic Move Towards Technological Advancement
The Nigerian government’s initiative to establish a national blockchain infrastructure represents a strategic move towards embracing advanced technology for national development. With strong backing from key stakeholders and the potential for significant economic and technological benefits, this initiative is poised to position Nigeria as a leader in blockchain technology within Africa and beyond.
As the country moves forward with this ambitious project, the focus will be on ensuring that the infrastructure is robust, secure, and capable of meeting the demands of a modern digital economy.
@ Newshounds News™
Read more: Coin Trust
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PHYSICAL CARDS: The Unexpected Frontier in Digital Security
Dr. Adam Lowe, chief product and innovation officer at CompoSecure, hears it all the time from banking executives when the topic is securing payments: “We cannot introduce friction.” But the balancing act is a tough one. Challenge a user too much and they’ll switch to a competitor. Challenge them too little, and the customer’s financial injury may be calamitous.
In this age of digital attacks and global hacks, banks, FinTechs and platforms face a dilemma. One need only look at the size and scope of the AT&T breach to see that hackers have been able to access, co-opt and use all manner of data to power their scams, and perhaps, cobble together synthetic identities. SMS texts are not as secure as they once were, given the fact that imposters can be the ones behind the SMS missive that seeks user confirmation to complete a transaction.
Among the best lines of defense and security, he said, is something that just about everyone has in their possession: a tangible, physical card. And the card, he said, ticks all the boxes of a robust and usable form of identity protection, as the technology has proven simple enough that even his mother feels comfortable using it, and as tap-to-pay has become a feature ingrained in daily financial life.
CompoSecure’s digital security platform, Arculus, streamlines digital authentication processes and secures digital assets, underpinned by the blockchain. CompoSecure, he said as part of the “What’s Next in Payments” halftime report, “essentially invented the metal card,” and now, with the digital Arculus platform, has extended the capabilities of a payment card.
“We’re seeing more customers rolling out our Arculus technology,” he said, “whether it be the wallet technology, and having digital assets alongside a payment card … or whether it’s the authenticate technology, which is for more traditional banks and for FinTechs.”
A Pocket-Sized Cryptography Engine
With enhanced digital security features, he said, the card “essentially becomes a cryptography engine in your pocket.”
The chip that’s embedded in the card, he said, serves as that aforementioned engine. To enhance the digital experience, he said, the company debuted the Arculus Cold Storage Wallet, which is the digital asset hardware wallet, which puts “keys” on the card for any user to store and use those keys for security to support and pay with crypto assets.
In addition, leveraging similar key technology, Arculus Authenticate allows users to tap their cards to authenticate themselves via a passkey that’s stored on those cards. These cards with Arculus Authenticate can also accept payments, so consumers can login, sign and approve payments.
“Instead of being synched to the cloud,” he said, of the data, “where it can be ‘ripped’ out of the cloud by bad actors, your passkeys are safe in your pocket the same way your keys to the front door of your house are safe in your pocket.”
And, he added, “whether it’s signing Visa transactions, or MasterCard, FIDO 2, or whether it’s signing Bitcoin and Ethereum transactions, that cryptography engine is happy … we can serve whatever market segment needs to be served by design, and we can make it all interoperable.”
That interoperability, he said, is a bit like bridging all the railroads back in the 1890s, as a range of different track gauges knit together to make everything work, east to west and vice versa. In this case, the various parties in a transaction using zero trust architecture standards as transactions move along various conduits.
According to the U.S. Department of Commerce, zero trust architecture is the term for “an evolving set of cybersecurity paradigms that move defenses from static, network-based perimeters to focus on users, assets and resources.” It assumes no implicit trust based on physical or network location.
@ Newshounds News™
Read more: PYMNTS
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