Uk Jin

Andean Medjedovic, a Canadian hacker accused of stealing tens of millions of dollars by hacking a digital asset (cryptocurrency) platform, is believed to have gone into hiding in Bosnia after being released in Serbia. According to Cryptopolitan, a digital-asset news outlet, on the 30th (Korea time), Medjedovic was arrested in Belgrade, Serbia, in 2024 and detained for 105 days, but was released after Dutch authorities’ extradition request was rejected. His exact whereabouts have not been confirmed since, and investigators are focusing on the possibility that he is staying in Bosnia. Medjedovic is accused of exploiting vulnerabilities in digital-asset platforms to steal assets worth a total of $65 million (about 90 billion won). Dutch and U.S. law enforcement authorities are investigating, believing he was involved in the 2023 hack of the decentralized finance (DeFi) platform KyberSwap and the attack on Indexed Finance. Investigative records say Medjedovic has remained on the run by moving across Europe, the Middle East and South America, using aliases and forged passports.

The US Producer Price Index (PPI) for December came in above market expectations. According to the US Department of Labor on the 30th (local time), the December PPI rose 0.50% from the previous month, surpassing the forecast (0.20%). On a year-on-year basis, the PPI also climbed 3.0%, coming in higher than market expectations. Producer prices are viewed as a leading indicator of consumer inflation, as they tend to be passed through to final consumer-goods prices after a certain period.

U.S. President Donald Trump has nominated Kevin Warsh, a former Federal Reserve (Fed) governor, as the next Fed chair. On the 30th (Korea time), Trump said on his Truth Social, "I am pleased to recommend Kevin Warsh as Fed chair."

With the digital-asset market mired in a prolonged downturn, criticism of the world’s largest exchange Binance and its founder Changpeng Zhao (CZ) has been spreading among investors, prompting Zhao to issue a direct response. On the 30th (Korea time), Zhao wrote on X (formerly Twitter): “This isn’t the first time, and it won’t be the last. I’ve continued to face baseless attacks. I’ll cover it in detail in an AMA (Ask Me Anything, Q&A).” His remarks come amid a recent surge of criticism directed at him and Binance on social media. Among digital-asset investors, criticism has persisted that Binance bears significant responsibility following the large-scale liquidations triggered by the sharp plunge on Oct. 10. They argue that losses spread due to the sudden market swing and forced liquidations, and that the market’s recovery has been delayed since. Zhao pushed back, saying that neither he nor Binance sold tokens in any meaningful size and that the exchange is under oversight from regulators.

‘Pro-Trump’ Kevin Warsh tipped as Powell’s successor Trump appears to have settled on Warsh after meeting him Backed tariffs, also urged cuts to the policy rate Markets: “more hawkish than expected” Kevin Warsh, a former Federal Reserve governor (photo), is reportedly the pick to succeed Jerome Powell as chair of the U.S. central bank. With U.S. President Donald Trump having signaled he would announce the next chair candidate on the morning of the 30th (Eastern time; the night of the 30th to early morning of the 31st in Korea), major overseas outlets including the Financial Times, The Wall Street Journal and Bloomberg News reported in unison that Warsh would be appointed. Bloomberg, citing sources, reported that the administration is preparing to allow President Trump to nominate Warsh as the next Fed chair. The outlet said Trump met privately with Warsh the previous day and had firmed up his intention to appoint him as the next Fed chair. Following the reports, betting site Polymarket saw the probability of Warsh being nominated as the next Fed chair surge to 94%. Speaking at an event held at the Trump Kennedy Center in Washington, D.C. the previous day, Trump said, “Tomorrow morning I will announce the Fed chair,” adding, “It will be someone everyone in finance knows.” He described the new chair as “excellent and highly respected.” Powell’s term as chair runs through May. Even so, Trump’s early nomination of a successor is being interpreted as pressure on the Fed. After the Federal Open Market Committee (FOMC) regular meeting on the 28th left the policy rate unchanged, Trump called Powell an “idiot” and stressed that “the United States should have the lowest interest rates of any country in the world.” Trump is expected to keep pressing for lower rates under the new chair as well. Warsh, too, has appeared aligned with Trump’s views, backing tariff policy and urging the Fed to cut rates. Still, markets on the day interpreted Warsh as a “hawkish dove” relative to other contenders previously mentioned. Compared with Rick Rieder, BlackRock’s Chief Investment Officer for global fixed income—said to have been in contention until the end—Warsh is seen as less dovish (more inclined toward monetary easing). After the reports, the dollar rose and U.S. Treasury yields climbed (bond prices fell). Warsh had also been floated as a Fed chair candidate during Trump’s first term. He was appointed a Fed governor in 2006 under the George W. Bush administration and served until 2011. Pro-Trump, former Wall Street hand and Coupang director…Warsh may speed up rate cuts Backed by Wall Street heavyweights including JPMorgan’s CEO…one-on-one with Trump ‘final vetting’ Four names had been mentioned as potential candidates for the next Fed chair: former Fed governor Kevin Warsh, Fed governor Christopher Waller, Fed governor Michelle Bowman, and Rick Rieder, BlackRock’s CIO. All believe the policy rate should be lower than it is now. Still, analysts say Warsh likely emerged as the pick as Trump sought someone who could reduce controversy over Fed independence and secure market confidence. ◇ From hawk to dove As recently as the 27th, Polymarket put Rieder—who has openly supported rate cuts—at a 54.2% chance of being appointed. Warsh’s odds stood at just 29%, reflecting his past hawkish (tightening-leaning) stance. He studied economics at Stanford University, then graduated from Harvard Law School and Harvard Business School. He later built experience on Wall Street, including serving as a vice president in Morgan Stanley’s M&A division. Under the George W. Bush administration, he was appointed the youngest-ever Fed governor in 2006. During the 2008 global financial crisis, he opposed the Fed’s quantitative easing. Many have also viewed his resignation in 2011—despite having seven years left in his term, after a second round of quantitative easing began—as stemming from opposition to the Fed’s accommodative monetary policy. But after the launch of the Trump administration’s second term, he began to express more dovish (easing-leaning) views. He is also said to have told Trump in an interview for the chair role that rates should be cut. Some analysts say support from Wall Street’s mainstream camp boosted Warsh. The Financial Times (FT), citing sources, reported: “Wall Street heavyweights such as JPMorgan CEO Jamie Dimon privately told Trump allies that ‘Warsh, a tested former Fed governor, is the safer choice than Rieder.’” Warsh currently serves on the boards of Coupang and UPS. ◇ Will he cut rates? Trump has voiced dissatisfaction whenever the economy showed signs of recovering, arguing that the Fed tries to curb inflation by raising rates. More recently, he has said the U.S. policy rate should be lowered to below 1% per year. The current U.S. policy rate is 3.5–3.75% per year. Fed Chair Jerome Powell is negative on such aggressive cuts. Warsh is seen as having a compromise approach. Damien Boey, a portfolio strategist at Australia’s Wilson Asset Management, told Reuters, “Warsh has publicly stated that he prefers lower rates,” adding, “but he is attaching a condition for rate cuts that the Fed should shrink its assets.” Trump also appears to have given points for such caution. The Wall Street Journal (WSJ) noted: “Trump wants a new chair who will follow his demands to lower rates, while also winning enough trust from Wall Street and Fed colleagues to carry it through.” Bloomberg News likewise said “Trump wants a ‘unicorn,’” seeking someone who can secure market credibility while remaining loyal to him. That reflects a painful memory: Powell supported rate cuts when he was appointed in 2017, then later broke with Trump’s line. Trump has publicly said, “I regret not appointing Warsh back then.” Attention is also turning to what Powell will do after a successor is appointed. His term as chair runs through May. His legal term as a Fed governor runs through the end of January 2028. For that reason, some say he could remain in his seat as a governor. A Fed chair nominee must clear a Senate confirmation vote to take office. Reporter Han Kyung-jae hankyung@hankyung.com

Unusual assessment in US “FX report” South Korea redesignated an “FX monitoring list” country USD/KRW rises instead, nearing 1,440 won The US Treasury on the 29th (local time) redesignated South Korea as a “foreign-exchange monitoring list” country and assessed the recent high exchange-rate environment as “not consistent with fundamentals.” It is highly unusual for the US government to cite the level of the won-dollar exchange rate in an official document, following an earlier verbal warning from US Treasury Secretary Scott Bessent. In its “Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States” released that day, the Treasury redesignated South Korea as a monitoring list country. The move is seen as reflecting that Korea exceeded the thresholds for the bilateral goods trade surplus with the US and the current-account surplus—criteria used in designations related to “currency manipulators.” On USD/KRW trends, the report noted that “by late 2025, the won further weakened in a way that was not consistent with Korea’s strong economic fundamentals.” The message mirrors what Secretary Bessent conveyed to markets on the 14th, shortly after meeting Deputy Prime Minister Koo Yun-cheol, who also serves as minister of the Ministry of Economy and Finance, warning about won weakness. A government official said, “It is unusual for the US FX report to assess a specific country’s exchange-rate level,” adding, “In particular, the second half of 2025 is not within this assessment period (July 2024 to June 2025).” Some analysts say the Treasury’s public mention of the won’s weakness reflects concern that instability in the FX market could delay the $350 billion in investment into the US agreed during Korea–US tariff negotiations. In Seoul’s onshore FX market, the won-dollar exchange rate (as of 3:30 p.m.) ended daytime trading at 1,439.50 won per dollar, up 13.20 won from the previous day. Market participants judged that news that former US Federal Reserve (Fed) governor Kevin Warsh could be nominated as the next Fed chair had a bigger impact than the Treasury report. By Kang Jin-kyu / Nam Jung-min, josep@hankyung.com

Binance, the world’s largest virtual asset (cryptocurrency) exchange, said it is preparing to expand institutional investment and payments infrastructure in the Korean market with local exchange Gopax as its base. SB Seckar, Binance’s Asia-Pacific (APAC) head, said in an interview with The Korea Times on the 30th that “23% of last year’s global growth came from institutional investment,” adding that “a similar trend will emerge in Korea as well once regulations are put in place.” Seckar said he expects many companies to buy virtual assets once regulatory guidelines for corporate virtual-asset investment begin to be announced. “Binance is reviewing institutional asset management and the buildout of a stablecoin-based cross-border payments infrastructure,” he said, adding that it is also exploring possible collaboration with local payments providers to introduce payment services for overseas visitors. He also pledged investor compensation measures related to Gopax. A day earlier, Gopax disclosed that it is holding virtual assets worth 130 billion won with a third-party custodian. Seckar said the move was “to transparently demonstrate the intent to compensate,” adding that Binance will “repay the debt after completing the remaining administrative procedures.”

StraitsX, a stablecoin infrastructure company that develops digital assets pegged to fiat currencies, said on the 29th that it has provided its “DVA/+” infrastructure to OSL Pay. DVA/+ is a virtual account infrastructure that supports stablecoin-based payments and settlement. With the deployment, OSL Pay can now support deposits, holdings and management of US dollar-denominated assets within its platform, enabling fund management linked to digital-asset payment and settlement without going through external remittance procedures. Jingwei, CEO of OSL Pay, said the goal is “to provide a more intuitive and stable link between fiat currency and digital assets,” adding that the integration aims to deliver a US dollar asset-management experience comparable to that of traditional finance. Anthony Koo, head of payments at StraitsX, said it is becoming increasingly clear that digital-asset platforms are opting to adopt scalable and stable infrastructure rather than building in-house solutions, adding that the OSL Pay case “signals the direction of the industry’s evolution.”

Rep. Ahn Do-geol of the Democratic Party of Korea took a cautious stance on discussions over the Framework Act on Digital Assets, saying “nothing has been finalized as the party’s official position yet.” On the 29th, the party’s Digital Assets Task Force (TF) compiled major contentious issues and reported them to the policy committee. A more concrete outline of the bill is expected to emerge as early as early next month. After completing the TF’s policy briefing at the National Assembly, Ahn told reporters, “We must not allow innovative industries to be stifled, but stability of the financial system is also a value we cannot give up.” He added, “How to harmoniously incorporate these two core elements into the制度 will be the key to this legislation.” The policy committee briefing is said to have included sensitive issues discussed at the TF’s closed-door meeting the previous day. It was reported that the discussions focused on rules limiting controlling shareholders’ stakes in virtual-asset exchanges—an issue drawing strong industry interest—and on a won-denominated stablecoin issuance structure in the form of a consortium in which banks hold a majority stake (50%+1 share). As for the legislative timeline, he signaled additional internal coordination. Ahn explained, “Even after the policy committee briefing, further political consultations with the floor leadership are needed,” adding that “after going through the relevant procedures, it could be finalized in bill form as early as around early February.”

Bill to introduce Phase 2 digital-asset legislation, targeting before Lunar New Year Stablecoin framework needs to narrow differences with the Bank of Korea No agreement on “mandatory 51% bank stake” Stablecoin issuer capital requirement: “at least KRW 5 billion” The Democratic Party has set a goal of introducing Phase 2 digital-asset legislation no later than before the Lunar New Year holiday. However, major issues—including the issuance structure for stablecoins—are said to still show wide differences of opinion with the Bank of Korea. The party said it will do its utmost to coordinate disagreements among stakeholders, including the Financial Services Commission and the Bank of Korea, before the bill is introduced. On the 8th, the party’s Digital Asset Task Force (TF) held a closed-door meeting at the National Assembly Members’ Office Building to discuss key issues in the Phase 2 digital-asset bill. The meeting focused on the division of roles with the Bank of Korea, how to establish a Digital Asset Committee, and requirements for stablecoin issuance. Rep. Ahn Do-geol said in a briefing after the meeting, “The Phase 2 digital-asset bill is targeting introduction before the Lunar New Year,” adding, “At the TF level, we have finished organizing the issues, and based on that we will continue discussions with the policy committee chair and consultations with the government through to the end.” The Phase 2 digital-asset law is an industry act that broadly covers the market, including issuance and disclosure of digital assets such as stablecoins (digital assets whose value is pegged to fiat currency) and regulation of exchanges. Legislative discussions began last year, but progress has been slow due to inter-agency differences over the bill’s core issue: the issuance structure for won-pegged stablecoins. The meeting discussed how the Bank of Korea and the FSC would consult during the stablecoin issuance process. Rep. Lee Jung-moon, the TF chair, explained, “The Bank of Korea is calling for a unanimity rule in relation to approving stablecoin issuers, and discussions with the FSC are under way,” adding, “Many lawmakers formed a consensus that a consensus-based approach using the existing consultation procedures with the FSC is realistic.” It was also reported that the parties still have not found common ground on the most contentious issue: the clause mandating a “51% bank stake” for stablecoin issuers. Rep. Lee Kang-il said, “On the ‘51% bank-stake consortium,’ neither side is in a position to concede, so it remains highly contentious,” adding, “One mediation proposal has been drafted and delivered to both sides.” The minimum capital requirement, which serves as an entry barrier for issuers, is trending toward “at least KRW 5 billion.” Rep. Ahn said, “Many viewed a stablecoin issuer capital requirement of at least KRW 5 billion—similar to the level for electronic money businesses under the current Electronic Financial Transactions Act—as appropriate.” In addition, the TF meeting reportedly discussed the name of the digital-asset bill, whether the Digital Asset Committee should be placed directly under the President, the creation of a new digital-asset consultative body, and the registration and licensing framework for digital-asset-related businesses.

From now on, virtual-asset (cryptocurrency) transaction data will be included in credit information. Virtual-asset service providers, including exchanges, will also fall under the Credit Information Act. On the 27th, the Financial Services Commission (FSC) said on its official website that the Cabinet had approved an amendment to the Enforcement Decree of the Credit Information Act and that it would take effect from that day. The centerpiece of the amendment is to explicitly include information related to virtual-asset transactions within the scope of credit information and to clearly define virtual-asset service providers as credit information providers and users. The FSC said, "With virtual-asset transaction data clearly defined as credit information, protection of information on exchange users will be further strengthened."

Australian authorities have raised concerns that regulatory gaps are widening as the digital asset and artificial intelligence (AI) industries grow rapidly, increasing risks to consumers. According to CoinDesk, a digital asset-focused outlet, on the 27th (Korea time) the Australian Securities and Investments Commission (ASIC) warned in its annual report, “Key Issues Outlook 2026,” that “as the number of digital asset, payments and AI-related firms operating without licenses rises rapidly, consumers are being exposed to various risks.” Specifically, ASIC said that new technology-based financial services, including digital assets, sit in blind spots of the existing regulatory framework, adding that whether these products and services fall under current financial regulation depends on the government’s policy judgment. It also noted that some firms appear to be deliberately remaining unlicensed to circumvent regulation, which is further increasing “regulatory uncertainty” in the market. ASIC added that, in light of these circumstances, it plans to closely monitor regulatory boundaries in 2026 as well and focus its supervisory capacity on clarifying licensing standards. However, the warning does not mean Australian authorities view digital assets negatively. In the report, ASIC said it “recognizes that digital financial innovation can contribute to economic growth,” while stressing that “if the regulatory framework fails to keep pace, it could lead to consumer harm and erosion of market trust.”

Bank of Korea (BOK) Governor Rhee Chang-yong said concerns over capital outflows would still remain if won-denominated stablecoins (digital assets pegged in value to fiat currencies) are issued. According to local media outlets including Aastocks on the 27th (Korea time), Rhee, who attended the 19th Asian Financial Forum in Hong Kong on the 26th (local time), said, “If won stablecoins are actively exchanged with dollar stablecoins, they could be used as a means to circumvent controls on capital inflows and outflows,” adding, “If market expectations are shaped by exchange-rate fluctuations, there is a possibility that funds could shift on a large scale into dollar stablecoins.” He went on to argue that issuance should be centered on major banks. “Dollar stablecoins have broad use cases and high accessibility, and transaction costs are lower than using dollars directly,” Rhee said. “This can lead to large-scale cash movements, and a structure in which non-bank institutions issue stablecoins makes supervision even more difficult. Therefore, while we would allow the issuance of won stablecoins, we want to start with bank-led institutions.” Rhee added, “Korea’s financial authorities are reviewing measures to allow domestic institutions to issue virtual assets by establishing a new registration regime,” and said, “Won stablecoins are highly likely to be used mainly for cross-border transactions, while tokenized deposits would be more suitable for domestic payments and settlement.”

Korea Digital Asset Custody (KDAC), a domestic digital-asset custodian, said on the 26th that it has officially launched 'KDAC-L,' a tailored custody service for listed companies. KDAC-L provides, by default, a financial-industry-grade security system, including 100% cold-wallet storage and key management based on multi-sig and MPC (Multi-Party Computation) technology. The service further focuses on addressing what listed companies considering digital-asset investments view as most important: responses to accounting audits and disclosure obligations. Specifically, as listed-company-specific features, it includes ▲issuance of an SOC (System and Organization Controls) attestation report for responding to external audits, ▲automatic provision of basic data for corporate disclosures, and ▲a multi-approval framework and segregation-of-duties functions for internal control. KDAC said, "This should help minimize compliance risks arising from listed companies' holdings of digital assets." KDAC also reorganized its existing single custody service model by segmenting it based on customer characteristics into ▲'KDAC-L' for listed companies, ▲'KDAC-I' for issuing foundations, and ▲'KDAC-C' for general corporations. It also plans to sequentially launch, during the first quarter of this year, 'KDAC-Fund,' a service dedicated to digital-asset funds, and 'KDAC-G' for public institutions, completing its service lineup for corporate and institutional clients. KDAC CEO Cho Sung-il said, "With financial authorities' announcement of guidelines and the prospect of allowing corporate investment becoming clearer, inquiries from listed companies are surging," adding, "With commercial banks such as Shinhan Bank and NH Nonghyup Bank participating as shareholders and a management team led by executives formerly from the Korea Securities Depository, we will be the safest partner for listed companies as an operator equipped with the trust and systems of regulated finance."

U.S. President Donald Trump warned that he would impose 100% tariffs on all Canadian-made products if Canada were to conclude a strategic agreement with China. On the 24th (local time), Trump wrote on his Truth Social that “if Canadian Prime Minister Mark Carney thinks he can turn Canada into a transit hub linking China and the United States, he is sorely mistaken,” adding, “the moment Canada does business with China, we will impose 100% tariffs on all Canadian goods and products entering the United States.” Trump’s remarks appear aimed at Carney’s recent push to build a “strategic partnership” with China. Carney recently visited China and announced a new cooperation initiative that includes expanding trade and investment and working together on global governance. U.S. conservative outlet Just the News said Carney’s outreach to China could face backlash given Canada’s economic structure, noting that Canadian government data show more than 75% of Canada’s total exports go to the United States, while the share bound for the Indo-Pacific region, including China, is around 10%. Trump has previously claimed of China-Canada cooperation that “China will completely swallow up Canada,” arguing that “Canada’s businesses, society and way of life will be destroyed.”