Uk Jin

Dunamu, which operates Upbit, the country's largest digital asset exchange, announced on the 30th that it has signed an industry–academia cooperation memorandum of understanding (MOU) with the Department of Management of Technology at KAIST for joint research and talent cultivation in the field of digital finance and assets. The signing ceremony was held the day before at the Alumni Startup Center on KAIST's main campus in Yuseong-gu, Daejeon, and was attended by Yun Seon-ju, Dunamu's Chief Brand Impact Officer (CBIO); Han Seung-heon, Head of the Department of Management of Technology at KAIST; and Jo Hang-jeong, Dean of the KAIST Graduate School of Management of Technology. The two sides signed a comprehensive joint cooperation MOU to establish a technology management ecosystem related to Korea's digital finance and digital assets, and plan to cooperate in fostering a digital finance and asset ecosystem and nurturing future talent. Dunamu will share its Upbit operating experience and blockchain industry know-how, and KAIST will use its knowledge and infrastructure to conduct research and education. The first collaboration was the 'UP Class' lecture held the same day. It was held successfully with participation from KAIST students and faculty and staff. Yun Seon-ju, CBIO, said, "This agreement will be an important turning point in the expansion of the domestic digital finance and asset ecosystem," adding, "We will continue to cooperate so that Korea can secure global competitiveness."

Retail sales, which had shown strength in July due to livelihood recovery consumption coupons and a recovery in consumer sentiment, turned negative last month. According to the 'August Industrial Activity Trends' released by Statistics Korea on the 30th, the retail sales index last month fell 2.4% from the previous month. Returning to negative after four months, it showed the largest decline since February last year (-3.5%). It appears to reflect a base effect from the 2.7% increase in July due to the payment of consumption coupons, but there are also analyses that the consumption stimulus from the second supplementary budget was only a 'one-off effect.' Production indicators were unchanged. Last month, the all-industry production index (seasonally adjusted) was 114.5 (2020=100), the same as the previous month. Industrial production had moved out of the 'negative' in April–May and continued an increase in June–July, but it appears to be pausing again. Mining and manufacturing production rose 2.4%, supported by favorable automobile production (21.2%), but construction production plunged 6.1%. Facility investment decreased 1.1% from the previous month. The coincident composite index cyclical component, which shows the current economic situation, rose 0.2 percentage points (p) from the previous month, and the leading composite index cyclical component, which forecasts the future economic phase, rose 0.5 p. Cha Eun-ji Hankyung.com reporter chachacha@hankyung.com

It has emerged that the Türkiye government is preparing a bill to grant the Financial Crimes Investigation Board (MASAK) the authority to directly freeze virtual asset (cryptocurrency) accounts. On the 29th (local time), according to Cryptopolitan, the Türkiye government is pursuing a bill to expand MASAK's Anti-Money Laundering (AML) supervisory jurisdiction to virtual assets. If the bill passes parliament, authorities will be able to immediately freeze or close accounts suspected of illegal activity at banks, electronic payment providers, and virtual asset exchanges, as well as blacklist wallets involved in crime and impose transaction limits. The government is particularly focused on cracking down on 'rented accounts' used for illegal gambling, fraud, and the like. All virtual asset service providers will be required to register locally, and measures such as verifying the source of funds and restricting stablecoin transfers are also expected to be strengthened. This measure is intended to meet FATF (Financial Action Task Force) standards.

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) held a joint roundtable for the first time in 14 years and officially denied merger rumors that had been raised in some quarters. On the 29th (local time), according to crypto-focused outlet Cointelegraph, Paul Atkins, SEC chair, said, "Cooperation between the two agencies is necessary, but there will be no merger," adding, "That is a matter for Congress and the President to decide." This was an official denial of merger rumors circulating in parts of the market. Caroline Pham, acting CFTC chair, said, "The concern that the CFTC's functions related to virtual assets have been weakened is not true," and introduced 18 actions and 13 enforcement cases the agency has carried out since January of this year. She emphasized, "The CFTC remains strong," and said, "There is no reason to spread baseless fear (FUD) anymore." Industry representatives such as Kraken and Crypto.com attended the meeting, and former CFTC chair Christopher Giancarlo and former commissioner Jill Sommers moderated the discussion. However, it is true that discussions to clarify the roles of the SEC and CFTC in the 'market-structure bill (Clarity Act, CLARITY Act)' are being delayed. This is because a deadlock in congressional budget negotiations has increased the possibility of a government shutdown.

<Today's Major Economic Schedule> ▶︎30th (Tue) : △China September Manufacturing Purchasing Managers' Index (KST 10:30) △UK Q2 GDP (KST 15:00) △U.S. August Department of Labor Job Openings and Labor Turnover Report (KST 23:00) <Today's Major Cryptocurrency Schedule> ▶︎30th (Tue) : △Sui (SUI) game onboarding △Paycoin (PCI) relaunch in Korea △Peaq (PEAQ) mainnet upgrade △PancakeSwap (CAKE) Polygon ZkEVM support △Kaia (KAIA) end of FNSA-KAIA swap support △Cross (CROSS) Rohan2 global launch △Optimism (OP) token unlock

On the 29th (local time), crypto-focused outlet BeInCrypto reported that London police confirmed that A, a Chinese national, deceived approximately 128,000 people between 2014 and 2017 to siphon off large sums, which were then stored in Bitcoin (BTC). Authorities said that after a seven-year investigation, A was caught attempting to launder money in the UK. The seized amount is about 61,000 Bitcoins, valued at 7.3 billion dollars (about 10 trillion won). The size of this seizure is set to be recorded as the largest virtual asset seizure in UK history. It is on par with the UK government's holdings, and the move has effectively doubled the UK's Bitcoin holdings.

Adrienne Harris, superintendent of the New York State Department of Financial Services (NYDFS), is stepping down after 4 years. On the 29th (local time), according to crypto (cryptocurrency) outlet Cointelegraph, Governor Kathy Hochul announced Harris's resignation and said she will appoint Deputy Superintendent Caitlin Asaro as acting superintendent starting on the 18th. Harris supervised Wall Street banks and global insurers, as well as many crypto firms including Coinbase, Circle, and Paxos. She is also credited with playing a key role in establishing a stablecoin regulatory framework.

Dark pool (a private trading system in which information such as order price and quantity is not disclosed when trading financial products) decentralized exchange (DEX) HumidFi has recently gained significant popularity. On the 29th (Korea time), U Blockchain cited DeFiLlama data, saying, "HumidFi recorded US$8.55 billion in trading volume over the past seven days, overtaking established DEX leaders such as Meteora, Raydium, and Orca to take first place in trading volume rankings."

QNB, one of Qatar's largest banks, is adopting JPMorgan's blockchain payments platform 'Kynexis' to speed up processing of dollar-based corporate payments. On the 29th (Korean time), Bloomberg reported that QNB has adopted the 'Kynexis Digital Payments' system, allowing corporate customers in Qatar to complete dollar payments within minutes. Kamel Morris, QNB's Executive Vice President in charge of Transaction Banking, emphasized, "We can now guarantee payment within 2 minutes through a 24-hour service window."

Recently, poor mNAV (net asset value ratio) metrics at multiple digital asset finance companies (DATs) have come under scrutiny, and some are calling for the mNAV metric to be abolished. On the 29th (Korean time), according to Cointelegraph, a cryptocurrency-focused outlet, Greg Cipolaro, Head of Global Research at New York Digital Investment Group (NYDIG), said in a report, "The mNAV metric as defined by the industry does not fit finance companies that hold digital assets such as Bitcoin (BTC)," and argued, "The metric should be discarded to prevent misleading investors." Cipolaro cited problems with mNAV such as failing to reflect business value beyond financial assets and errors in calculating convertible bonds. He emphasized that instead of mNAV, one should look at net asset value (NAV), asset growth per share, and the ability to generate earnings. He explained, "If a digital asset finance company can generate earnings, it can issue at a premium to net asset value," adding, "It is important to look at the company's intrinsic value."

"Will enhance market surveillance system by introducing AI" "Strengthen IPO underwriters' roles and delisting requirements" Jeong Eun-bo, chairman of the Korea Exchange, said on the 29th that "the domestic capital market is being re-evaluated and trust is deepening," and emphasized that "we will do our best to create a market environment, including monitoring unfair trading, for the 'Korea premium'." Chairman Jeong said in his opening remarks at the 'Korea Capital Market Conference (KOREA CAPITAL MARKET CONFERENCE 2025)' held in the Grand Ballroom on the 1st floor of The Westin Chosun Seoul on the day that "the KOSPI index has been hitting record highs day after day and valuation (the level of share prices relative to earnings) is steadily improving," adding, "the domestic capital market stands at a critical crossroads toward becoming an advanced market." He continued, "This market trend is not temporary or cyclical," and said, "it reflects consistent and strong government capital market policies and expectations for innovation and major transformation in advanced and leading industries." Chairman Jeong emphasized that he will take the lead in creating a market environment for the 'Korea premium.' He said, "We will further refine the value-up program to support transparent and systematic timely disclosure of corporate performance and long-term growth strategies," adding, "through this, shareholder returns will expand, and companies themselves will establish reasonable corporate governance so that shareholder value management can take root." He also declared, "To enhance the soundness of the initial public offering (IPO) market, we will expand institutional investors' lock-up commitments and strengthen the role of underwriters," and said, "we will continuously rationalize the entry and exit system, such as by strengthening delisting requirements and streamlining the procedures so that insolvent or zombie companies do not disrupt the market." He added, "We will dramatically eradicate unfair trading by strengthening the initial response capabilities of the Joint Task Force to Eradicate Stock Price Manipulation," and said, "we will work on enhancing the market surveillance system, including shifting the surveillance system to be individual-based and promoting the introduction of a generative artificial intelligence-based surveillance system." Chairman Jeong also expressed his ambition to proactively respond to global trends in capital markets. He said, "The global capital market is undergoing unprecedented, disruptive change and an infinite competition of innovation," and added, "discussions about extending the Korea Exchange's stock trading hours should also be viewed from the perspective of global competition and could be a stepping stone toward a 24-hour trading system." He continued, "We will prepare for the two major trends of tokenization of traditional assets and the securitization of digital assets," and emphasized, "we will actively respond to future financial changes by preparing new products such as token securities (STO) and virtual asset exchange-traded funds." The conference, now in its second year, gathered about 1,000 participants including major domestic and foreign institutional investors, industry officials from securities and asset management, index providers, and retail investors. On the first day of the event, the 29th, a special session was held to commemorate the KOSPI record high, followed by discussions on tasks to achieve a KOSPI index of 5,000. On the 30th, a session titled 'A New Investment Landscape Opened by Digital Assets' will be held, focusing on changes in the digital asset investment environment and discussions on the successful introduction of new products such as virtual asset ETFs. The Exchange said, "We plan to ensure that the various opinions discussed at this conference are reflected as actionable plans for the development and competitiveness enhancement of the Korean capital market." Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com

An analysis has emerged that domestic consumers' perceptions of stablecoins (virtual assets pegged to fiat currencies) are changing. On the 29th, the industry reported that Shinhan Card's Big Data Research Institute said in its released "Customer Perception on Stablecoins" report that mentions of stablecoins in the first half of this year increased by 359% and searches increased by 403% compared to the second half of last year. In particular, reviews of in-person payments surged between May and July, spreading interest. This is the result of Shinhan Card's Big Data Research Institute conducting an exhaustive survey of the keyword "stablecoin" on X (formerly Twitter), internet communities, social media (SNS), portal sites, and others from last year through July this year. Among citizens, interest in in-person payments using stablecoins was high. In particular, "international remittances" based on fast payment speed and low fees were cited as the biggest advantages of stablecoins. There were also many in-person payment reviews. Between May and July, usage reviews of stablecoin cards currently usable domestically—Hong Kong's LiDotPay and the United Arab Emirates (UAE)'s Bybit Card—gained popularity. Both services use Tether (USDT), Circle (USDC), etc., in a prepaid charging method. Mainly male users in their 20s and 30s showed interest in stablecoins. The gender share of stablecoin searches was 74% male and only 26% female. By age, those in their 20s to 40s accounted for 66%, and those 50 and older accounted for 34%. Domestic card companies are also expected to respond. For example, Shinhan Card formed a "KRW stablecoin working group" internally and has begun researching ways to improve customer convenience across payment and settlement processes. A Shinhan Card Big Data Research Institute official said, "Since the new government took office, policy discussions on stablecoins have intensified and public interest has expanded," and added, "It is necessary to strengthen remittance and payment convenience in line with the legalization of KRW stablecoin introduction."

Hyperdrive, which suffered a hacking incident, is resuming operations. On the 29th (KST), Hyperdrive said on X (formerly Twitter), "We have completed the recovery of funds for all accounts in relation to the security incident that occurred on the 27th," and "The platform is currently operating normally." This hacking occurred in Hyperdrive's USDT0 market. According to the company, the attack targeted collateral positions, and the hacker is believed to be an individual involved in attacks on other DeFi protocols. All affected users have been compensated.

Urged at an executive meeting As the Financial Services Commission was excluded from the government organization law revision and thus avoided the threat of dissolution, Chairman Lee Eok-yeom emphasized organizational renewal and the restoration of trust. He said public and market scrutiny remains severe and urged, "The Financial Services Commission must embark on change with the extraordinary resolve that this is the last chance." At an executive meeting on the 29th, the chairman said, "We must boldly innovate the organization and the overall way of working to fundamentally resolve consumer harm caused by financial accidents and financial crimes, issues of publicness and transparency in financial administration and lack of on-site communication, and the insufficient support for livelihoods and the real economy." He said, "To this end, with a renewed resolve, we will consult with relevant ministries on reorganizing the organization and duties to strengthen finance's core roles, such as enhancing consumer protection functions." He added, "To achieve a major shift to consumer-centered finance, we must first change our existing way of thinking," and urged, "Please focus on the various missions given to the Financial Services Commission, such as thorough crisis response to domestic and external uncertainties, a major shift to productive finance and revitalization of the capital market, and producing tangible results in inclusive finance." The chairman also emphasized, "The wall that the Financial Services Commission appears to the market remains high," and said, "Keep in mind that the authority of government authorities comes not from power but from competence, and approach all tasks with humility." Shin Min-kyung Hankyung.com reporter radio@hankyung.com

The Incheon City Waterworks Headquarters will pilot a virtual asset tracking system for collecting water bills, the first of its kind nationwide. According to industry sources on the 29th, the Incheon City Waterworks Headquarters announced it will operate a "second-half special period for organizing overdue water bill amounts" from the 1st of next month to November 30. The main targets are high-amount and habitual delinquent payers with overdue amounts of 500,000 won or more, whose unpaid amounts total 813,000,000 won, accounting for 34% of the total delinquent amount of 2,387,000,000 won. The bureau plans to issue notices of service suspension and encourage voluntary payment, and if they do not comply, will take strong administrative measures such as delinquency enforcement. In particular, during this organization period, it will introduce a virtual asset tracking system that can identify hidden assets through account inquiries at major exchanges such as Upbit and Bithumb and collection of Korean won. It is expected to improve collection effectiveness compared to existing seizure methods. For livelihood-type delinquent payers who have difficulty paying due to economic hardship, the bureau will support deferral of service suspension and installment payments, and will also conduct tailored collection in cooperation with welfare departments. Jang Byung-hyun, head of the Incheon City Waterworks Headquarters, said, "Water bills are an essential revenue directly linked to citizens' lives," and added, "We will do our best to introduce a virtual asset seizure system, the first in the country, to ensure fiscal soundness and management rationalization."