Uk Jin

The CEO of Haru Invest, Mr. Lee, who received virtual assets (cryptocurrencies) from investors and was at the center of a withdrawal suspension incident, has been acquitted. According to the industry on the 17th (KST), the 15th Criminal Division of the Seoul Southern District Court (Chief Judge Yang Hwan-seung) ruled, "Although it is difficult to deny responsibility due to poor management, it is hard to consider it as deception punishable under criminal law," and acquitted Mr. Lee. Mr. Lee was indicted on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes for suddenly suspending withdrawals in June 2023 and misappropriating virtual assets worth approximately ₩880 billion from over 6,000 clients. In addition, Mr. Park and Mr. Song, co-CEOs of Block Crafters (operator of Haru), who were indicted together with Mr. Lee, were also acquitted. The court accepted all of the defendants’ arguments regarding Haru’s business sustainability, the alleged deceptiveness of promotional activities, and potential willful misconduct.

US and UK Central Banks Set to Decide Rates This Week Most Experts: "Cautious Approach Expected on Rate Cuts" With the geopolitical crisis in the Middle East escalating due to armed conflict between Israel and Iran, attention is turning to how this will affect the US and UK central banks as they prepare to decide benchmark interest rates this week. Most experts believe the Middle East crisis is causing oil prices to spike, which burdens global inflation, leading both the Fed and the Bank of England (BOE) to take a more cautious stance on rate cuts. The Financial Times (FT) reported on the 17th that geopolitical tensions between Israel and Iran are testing the resolve of central banks to cut rates, adding that the potential for new economic shocks from the Middle East would make the US and UK more cautious about easing. Analysts believe the Fed will refrain from rate cuts for now, despite recent easing of inflation, due to the possibility of surging oil prices. There are also warnings that if the Middle East conflict worsens, crude oil prices could exceed $80 per barrel. The Fed, along with other global central banks, remains wary of rising energy prices, with fresh memories of post-COVID-19 consumer price spikes. In particular, risks of stagflation—sluggish growth alongside rising prices—persist due to the trade war sparked by US President Donald Trump, fueling calls for greater caution regarding further rate cuts. Since cutting its key rate in December last year, the Fed has kept rates on hold, and markets expect this will likely continue at the Federal Open Market Committee (FOMC) on the 17th and 18th this month. The Bank of England also cut rates last month, but in light of the Middle East crisis, it is widely expected to hold the benchmark rate at 4.25% at its meeting on the 19th. Brent Crude, the global oil price benchmark, spiked as much as 12% after Israel attacked Iran in the early hours of the 13th (local time), before pulling back and showing volatility. Experts suggest that unless there are severe disruptions to the oil supply and Iran does not blockade the Strait of Hormuz, the spike in oil prices should subside. According to data from the UK maritime trade authority, 111 ships passed through the Strait of Hormuz last week, down from 147 the previous week, but there were no signs the strait was being closed. Most experts predict that this crisis in the Middle East will likely delay the Fed’s rate cuts, though some argue it could have the opposite effect. According to Yahoo Finance, Ryan Sweet, chief economist at Oxford Economics, stated in a recent report to clients, "If oil prices rise persistently, the Fed could take a more dovish (accommodative) stance." He also projected, "If the shock to the economy and labor market from surging oil prices outweighs its impact on inflation, the Fed could signal a rate cut earlier than expected." Hye-Won Ahn, Hankyung.com reporter anhw@hankyung.com

<Today's Major Economic Schedule> ▶︎Tuesday, 17th: △Japan Rate Decision (12:00, KST) △US May Core Retail Sales (21:30, KST) △US May Retail Sales (21:30, KST) <Today's Major Cryptocurrency Schedule> ▶︎Tuesday, 17th: △zkSync Large-Scale Token Unlock △The Sandbox (SAND) Smurf Minting △Lido DAO (LIDO) Node Operator Call

The world's largest investment bank, JPMorgan Chase & Co., has filed a trademark application for 'JPMD', sparking active discussion within the crypto asset (cryptocurrency) community. On the 16th (local time), Alex Thorn, Head of Research at Galaxy Digital, stated, "In my opinion, JPMD is presumed to be related to JPMorgan's digital asset business," adding, "There is also a high possibility that it could be a stablecoin." The trademark application for JPMD specifies that it will "provide issuance, trading, exchange, transfer, and payment services for digital assets in the future."

On the 16th (local time), Fox News, citing a U.S. government official, reported that the United States has no plans to attack Iran and is maintaining a defensive posture. Pete Hegseth, U.S. Secretary of Defense, emphasized in an interview with Fox News, "President Donald Trump is still aiming for nuclear negotiations with Iran."

The Chinese Embassy in Israel has reportedly urged its nationals in the country to leave Israel via land as soon as possible. According to Reuters on the 17th (local time), the Chinese Embassy in Israel announced on its social media (SNS) WeChat that "as the conflict between Israel and Iran continues to escalate, the security situation is becoming more serious, with civilian facilities damaged and civilian casualties increasing." The embassy further recommended, "Since Israeli airspace is closed, depart Israel via land routes toward Jordan." Earlier, the embassy had suspended consular services and other external operations since the 15th.

The decentralized finance (DeFi) project Fairmint submitted a proposal to the Securities and Exchange Commission (SEC), calling for the adoption of a blockchain framework for the private equity market. According to Cointelegraph, a virtual asset (cryptocurrency) media outlet, on the 16th (local time), Fairmint submitted a proposal to the SEC’s virtual asset task force (TF), recommending the introduction of a 7-stage blockchain framework to innovate the U.S. private equity ecosystem. Through its proposal, Fairmint argued that the private equity market needs ▲ infrastructure standardization, ▲ real-time regulatory monitoring systems, ▲ self-management rights for investors, ▲ knowledge-based investor verification, ▲ a regulated DeFi sandbox, ▲ a smart contract-based broker-dealer framework, and ▲ direct payment protocols via blockchain. Joyce Delano, CEO of Fairmint, stated, “Private companies manage billions of dollars of Excel market capitalization, while public companies are regulating the infrastructure,” and emphasized, “This results in unnecessary friction, compliance gaps, and restrictions on U.S. capital formation.”

The situation appears to have reversed less than a day after optimism emerged about easing tensions between Israel and Iran. The likelihood of U.S. military involvement has surged. As of 7:58 a.m. KST on the 17th, the probability of 'the U.S. military intervening in the Iran situation before August' on the decentralized exchange Polymarket stands at 60%. Even earlier this morning, the probability of U.S. military involvement was only about 40%. However, after former President Donald Trump announced on his social media (SNS) at 7:30 a.m. that people should "immediately evacuate from Tehran (the capital of Iran)," the probability of involvement sharply increased.

On the 16th (local time), Donald Trump, President of the United States, said on his social media (SNS), "Iran should have signed the 'deal' I instructed them to sign," adding, "It's unfortunate." He went on to say, "Iran cannot have nuclear weapons," and announced, "Everyone must evacuate Tehran immediately."

As the conflict between Israel and Iran intensifies, neighboring countries have condemned Israel. According to Jinshi News on the 17th (KST), the foreign ministers of 21 countries, including Egypt, Jordan, United Arab Emirates (UAE), Pakistan, Bahrain, Türkiye, and Saudi Arabia, issued a joint statement condemning the escalation of tensions in the Middle East caused by Israel's attack on Iran. In the statement, they emphasized, "As tensions continue to rise in the Middle East, Israel must cease hostile actions against Iran, seek to de-escalate tensions, and strive to achieve a ceasefire and comprehensive peace."

According to Bitcoin Magazine on the 16th (local time), Brian Armstrong, CEO of Coinbase, visited London on this day and discussed Bitcoin (BTC) and virtual assets (cryptocurrencies) with policymakers of the United Kingdom.

According to AP News on the 16th (local time), U.S. President Donald Trump announced that, together with UK Prime Minister Keir Starmer, he had "signed a document finalizing the trade agreement to reduce tariffs on goods between the UK and both countries." However, it was reported that the agreement does not include tariffs on steel. Discussions are still ongoing as to whether steel tariffs will be reduced to 0% as part of a provisional deal. Tariffs on UK vehicles are expected to be reduced from 25% to 10%.

There is growing interest in whether the integration of the Ada (ADA) and XRP ecosystems will be achieved. On the 15th (local time), Charles Hoskinson, the founder of Ada, responded on X (formerly Twitter) to a user's question, "Are there plans to incorporate RLUSD into Ada?" by saying, "There is the full XRP package, including Glacier Drop, Lace Wallet support, XRP DeFi, and RLUSD." These plans are interpreted as aiming to launch various services that XRP holds on the Ada network and to diversify services. Hoskinson, the founder, also stated in an AMA session on the 9th that "there are plans to add XRP to Ada's lightweight Lace wallet soon."

Ethereum (ETH) co-founder and CEO of infrastructure company ConsenSys, Joseph Lubin, claimed that the integration of TradFi and DeFi is accelerating. On the 16th (local time), CEO Joseph Lubin stated on his X (formerly Twitter), "Many companies are incorporating Bitcoin (BTC) and Ethereum as financial assets," adding, "This is an example demonstrating the increasing adoption of DeFi by TradFi." Lubin also suggested that in order to accelerate this process, the entry of Wall Street should be encouraged. He explained, "To get Wall Street interested in decentralized protocols, continuous upward potential of investment products must be shown. If that happens, Wall Street will also conduct in-depth research to understand companies adopting digital assets." Throughout this process, CEO Lubin especially emphasized the importance of DeFi. He stated, "First, we need to attract Wall Street’s attention to normalize DeFi. Next, we must build user apps for consumers and enterprises," and stressed, "As a result, the paradigm shift toward the decentralization of the global economic system could accelerate."

Kidnapping crimes targeting virtual assets (cryptocurrency) are on the rise. On the 16th (local time), according to the cryptocurrency news outlet Cointelegraph, four assailants kidnapped a 26-year-old French virtual asset TikTok influencer and threatened them to transfer virtual assets worth €50,000. The perpetrators reportedly forced the victim into a stolen vehicle and assaulted them. However, it turned out the influencer's actual balance was far less than €50,000, and the criminals determined their monetary demands couldn't be met, so they released the influencer. Recently, crimes targeting virtual assets have been occurring frequently around the world, especially centered in France. Notably, in France, on the 13th of last month, the daughter and grandson of Pierre Noizat, CEO of the virtual asset exchange Paymium, were nearly kidnapped in broad daylight, and in January this year, David Balland, co-founder of the hardware wallet firm Ledger, was kidnapped from his home and was dramatically rescued one day later.

Cryptocurrency exchange Bybit will launch a decentralized exchange (DEX). On the 16th (local time), cryptocurrency-focused media outlet Cointelegraph reported that Bybit announced via X (formerly Twitter) the plan to launch Solana-based DEX 'ByReal' in the third quarter. Ben Zhou, CEO of Bybit, stated, "ByReal will be an exchange that combines the liquidity of centralized exchanges (CEX) with the transparency of decentralized finance." The testnet version of ByReal is scheduled to launch at the end of this month.