Uk Jin

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."

New York Mayor Eric Adams has abandoned his bid for re-election. Eric Adams is friendly toward virtual assets (cryptocurrency). On the 29th (Korea time), according to crypto-focused media outlet The Block, Mayor Adams announced via X (formerly Twitter), "The decision of the campaign finance committee cut off millions of dollars in support and the constant pressure from the media made fundraising for the campaign impossible," and declared his withdrawal from the race. Mayor Adams received his first three paychecks in Bitcoin (BTC) immediately after taking office, and he held New York City's first virtual assets summit, making him a representative pro-virtual-asset figure. At the summit, Mayor Adams also argued for "the repeal of BitLicense regulations," saying, "New York City is open to the blockchain·Web3·fintech industries."

<Today's Major Economic Schedule> ▶︎29 (Mon) : △Christopher Waller, Federal Reserve (Fed) Governor speech (KST 20:30) <Today's Major Cryptocurrency Schedule> ▶︎29 (Mon) : △Lido (LIDO) buyback vote △Avalanche (AVAX) team update △Ronin (RON) buyback start

Poland's parliament has passed a new virtual asset (cryptocurrency) law that aligns with European Union (EU) standards. However, there appears to be controversy within Poland over the bill's passage. On the 29th (Korean time), according to crypto-specialized media Cryptopolitan, the Polish lower house passed the new virtual asset bill on the 26th with 230 votes in favor and 196 against. The bill contains provisions to implement the EU's MiCA regulations. It imposes criminal liability for unauthorized service provision and token issuance, and violations can be punished with fines of up to about $120,000 and imprisonment of up to two years. The bill also grants the Financial Supervision Authority (KNF) the authority to supervise virtual asset exchanges and stipulates obligations such as maintaining individual customer accounts. However, the Polish virtual asset industry is protesting the new regulatory proposal. Poland's largest virtual asset media outlet, Bitcoin.pl, criticized that "(KNF's powers are) not market supervision but a repressive tool," saying "it could place a heavy burden on small operators."

People Power Party to set up 'Digital Asset Value Special Committee' Kim Jae-seop: "We will promptly organize digital asset regulations" Industry: "Kakao and Naver are strong candidates for a won-denominated stablecoin" "Second-phase legislation must be completed within the year… corporate accounts are urgent" The People Power Party said it would set digital assets (cryptocurrencies) as a core task for South Korea's rise as a financial powerhouse. As the ruling party moved to launch a party-level digital asset task force (TF), the opposition also appeared to signal it would not fall behind in this trend. Kim Jae-seop, a People Power Party lawmaker, said at the 'Digital Asset Market: From Institutionalization to Globalization' forum held at the National Assembly on the 26th, "As younger generations feel a sense of deprivation in real estate, digital assets are emerging as an alternative," adding, "Since many investors have already entered the market, we will promptly organize laws and regulations so that Korea does not lose its lead in the new financial market." In particular, Kim said he paid attention to the "balance between consumer protection and promoting innovation" while preparing the 'Digital Asset Market Consolidation Act' he proposed on the 24th, which comprehensively regulates the digital asset industry. Kim said, "If a bill is biased toward one side, it can hinder the other," and stressed, "Second-phase legislation must move in a direction that can achieve consumer protection and innovation promotion simultaneously." Song Eon-seok, the People Power Party floor leader, who also attended the event, shared the view. Song said, "Digital assets, including stablecoins (virtual assets pegged to fiat currencies), are no longer the domain of only some investors," adding, "They are seen as a means that can determine national competitiveness in line with the upcoming Fourth Industrial Revolution." He also said, "We must prepare a foothold in the digital asset market for South Korea to leap forward as a financial hub." As part of this plan, the People Power Party plans to launch the 'Digital Asset Value Special Committee.' Kim Do-eup, chairman of the People Power Party policy committee, said, "Through a party meeting, we decided to establish a committee centered on lawmaker Kim Jae-seop," and added, "We will set directions for the development of digital assets through the special committee." "Act quickly on stablecoins" There were also opinions that the won-denominated stablecoin, cited as a core part of second-phase legislation, should be pushed forward quickly. Kim Gap-rae, senior research fellow at the Korea Capital Market Institute, who participated as a presenter that day, said, "Differences among stakeholders in Korea are still preventing the start of a won-denominated stablecoin," and pointed out, "Korea must not fall behind in a situation where major countries such as the U.S. and the European Union are competing for dominance." Kim said that clarifying the concept of stablecoins is urgent. He explained, "Stablecoins should be understood as a means of payment, neither securities nor commodities," and said, "The basic principle is to maintain one-to-one reserve assets, verify and disclose them, and ensure they can be redeemed at any time." He also paid attention to recent movements in the domestic fintech industry regarding stablecoins. Kim said, "Kakao and Naver are mentioned as strong candidates for issuing a won-denominated stablecoin," and added, "Kakao already owns its own bank and is ready to enter at any time, and the consortium of Naver and Dunamu is also a strong competitor." He went on to say, "The direction of the regulatory proposal, especially how the redemption structure is set, could determine who takes the lead." "Second-phase legislation can be completed within the year" In a subsequent presentation, Hwang Se-woon, senior research fellow, argued that second-phase legislation should be completed at least within the year and that this is sufficiently possible. He said, "The integration of digital assets and financial markets is an inevitable trend," and emphasized, "Since businesses are effectively performing functions similar to financial companies, it is urgent to establish entry regulations and investor protection measures." Among these, Hwang saw allowing corporate account openings as the most urgent. He said, "Although the government has announced a policy to allow corporate accounts, there has been no progress," and pointed out, "Restrictions on corporate market access have already reached their limits." He explained that allowing token issuance (ICO) is also necessary to revitalize the domestic blockchain industry. Hwang said, "With investor protection measures in place, domestic companies should be able to issue tokens legally," and added, "If issuers' disclosure obligations and other matters are organized in the second-phase digital asset legislation, related businesses can be launched promptly."

With about three months left in the year, opinions were expressed that Phase 2 legislation for digital assets (cryptocurrencies) should be enacted within the year and that it is fully possible. Hwang Se-woon, Senior Research Fellow at the Korea Capital Market Institute, participated in the 'Digital Asset Market: From Institutionalization to Globalization' discussion held on the 26th at Seminar Room 1 of the National Assembly in Yeouido, Seoul, and said, "It appears that the government's announcement of the Phase 2 bill of the Digital Asset Basic Act could be possible within the year." The Phase 2 legislation is expected to include △the institutionalization of stablecoins (virtual assets whose value is linked to fiat currency), △measures to protect users and stabilize the market, and △the concretization of token securities (STO) laws. Hwang said, "The integration of digital assets such as stablecoins and STOs with financial markets is an inevitable direction," and added, "Since issuers and service providers effectively have the nature of financial companies, entry regulations and investor protection measures are necessary." He particularly pointed out that allowing corporate account openings in this regard is urgent. Hwang noted, "The government has already stated it would allow corporations to open virtual asset accounts in the second half of the year, but it still appears there has been no progress." Other measures to supplement the bill include ▲regulation of entry and operations for virtual asset service providers, ▲prevention of conflicts of interest, ▲designation of self-regulatory bodies, and ▲strengthening of disclosure obligations.

Competition in the fintech industry over stablecoins (virtual assets whose value is linked to fiat currency) is intensifying, and opinions suggest that ultimately the winner depends on the direction of regulatory proposals. Kim Gap-rae, director at the Korea Capital Market Institute, attended the 'Digital Asset Market: From Institutionalization to Globalization' forum at the National Assembly in Yeouido, Seoul on the 26th and said, "The winner in the market will be determined depending on the direction of stablecoin institutionalization." Kim said, "In regulatory proposals for stablecoins, defining a clear concept of stablecoins is the most important," and emphasized, "It is necessary to study the Genius Act, Ilbop's Payment Settlement Act, and the European Union (EU)'s MiCA to align with global standards." He then cited three key elements related to stablecoins: △ maintaining a 1:1 reserve asset, △ verification and disclosure of assets, △ the redemption structure. Among these, he saw the redemption structure as determining the domestic market landscape. Kim explained, "If redemption obligations are imposed on issuers, Kakao, which owns a bank, would have the advantage; if an exchange-centered redemption structure is established, Naver's consortium together with Upbit would have the upper hand."

The People Power Party announced plans to foster the digital asset (cryptocurrency) market to propel South Korea into a financial powerhouse. On the 26th, Kim Jae-seop of the People Power Party attended the 'Digital Asset Market: From Institutionalization to Globalization' forum held in the First Seminar Room of the National Assembly in Yeouido, Seoul, saying, "While the younger generation feels a great sense of deprivation in the real estate market, digital assets are emerging as an alternative," and "We will quickly organize legal frameworks so that South Korea does not fall behind in the new financial market." The forum was hosted by Kim Jae-seop of the Standing Committee on Political Affairs and Park Sang-hyuk of the Democratic Party of Korea. Kim pointed out, "Even though there have been many discussions regarding digital assets since the 21st National Assembly, clear legislation related to digital assets has still not been enacted." He emphasized that the core of digital asset legislation is balancing consumer protection and promoting innovation. Earlier, Kim had introduced the 'Digital Asset Market Integration Act' on behalf of the People Power Party. Kim said, "(When proposing legislation) focusing only on consumer protection can hinder innovation, and conversely, focusing only on innovation can transfer risk to consumers," adding, "When proposing bills now, balancing the two perspectives is our top priority." Song Eon-seok, the People Power Party floor leader who attended the event, assessed, "Recently, stablecoins (virtual assets whose value is linked to fiat currency) have emerged as a hot topic worldwide," and "digital assets are no longer just an issue for some investors." In particular, Song predicted that digital assets, intertwined with the upcoming Fourth Industrial Revolution, could be a means to determine national competitiveness. He said, "Compared to other countries, South Korea has been assessed as having a weak financial sector so far, but if it secures leadership in the digital asset market, I believe South Korea can stand tall as a financial hub."

A hacker who attacked UXLINK has reportedly cashed out. On the 23rd (KST), LookonChain reported that the UXLINK hacker sold 49 million UXLINK tokens on a decentralized exchange (DEX), converted them to Ethereum (ETH), and cashed out $28.1 million worth of tokens. The hacker also minted an additional 2 billion tokens.