CODE Hosts 2024 Bi-Annual Meeting
CODE, a Travel Rule solution company, held a private networking event sponsoring the ‘Bitcoin Seoul 2024’ held at the Yeong Bin Gwan, Shilla Hotel Seoul on the 29th of May. More than 80 members from 46 member companies, including digital asset exchanges, custodians, and wallet service providers, attended the event to share and exchange major trends in the Korean digital industry. The event also featured sessions by Seo-hee Han, Attorney at Barun Law Firm, Jae-jin Kim, Executive Vice Chairman of Digital Asset Exchange Association (DAXA), Sung-hoon Ju, CTO of Code, and Stephanie Kim, APAC Director of Kaiko.
Attorney Han emphasized the need to improve the regulatory environment before launching the digital asset ETF(s), as they will eventually be approved in Korea in the near future. Market making activities are currently prohibited in Korea under the User Protection Act, so Attorney Han explained some of the policy issues that come with introducing the ETFs.
Vice Chairman Kim emphasized the importance of protecting user’s data while also nurturing the digital asset industry at the same time.
“Funds are flowing out of Korea in search of products and services that are not available on domestic exchanges, while foreigners are prohibited from using local exchanges, resulting in side effects such as the ‘kimchi premium,’” Kim explained during her presentation.
CTO Ju during his session explained the different ways CODE is able to help mitigate some of these issues that are arising in the digital asset environment.
With CODE’s Travel Rule solution, members are able to search for a VASP just by the wallet address, instead of relying on their user’s input. Soon, CODE users will also be able to search by Transaction ID (TXID) for an even more convenient and secure experience. These features will better prepare VASPs for the upcoming Virtual Asset User Protection Law, coming into force starting July 19, 2024.
Director Kim’s session highlighted the importance of comprehensive and high-quality data in navigating the complex global virtual asset regulatory environment.
Sung-mi Lee, CEO of CODE, said, “It is a time of expansion for Travel Rule overseas, following the example set by Korea, which first implemented Travel Rule regulations in March 2022. 36% of CODE’s transactions are processed among overseas VASPs,” stated Sung-mi. “As a Travel Rule solution provider, we hope that domestic VASPs will be able to compete more competitively as we continue to expand overseas.”
