[Weekly Blockchain] Major Blockchain News in the 3rd Week of June, 2024
Hello, this is the LEDGIS Team.
Let’s go check out what news there was in the blockchain market this week with [Weekly Blockchain]!
You can find detailed information on each news item by referring to the respective articles.
👉 “Introducing Virtual Asset ETFs: Pros Outweigh Cons”
Korea Economic TV reported that despite Bitcoin and Ethereum spot ETFs being approved in the US and other countries this year, there is analysis suggesting that introducing virtual asset-linked products in South Korea could bring more risks than benefits.
On the 23rd, researcher Lee Bo-mi of the Korea Institute of Finance mentioned in a report titled “Consideration of Overseas Approval of Virtual Asset Spot ETFs” that allowing issuance and trading of virtual asset-linked products such as Bitcoin spot ETFs could benefit investors by providing regulatory protection and allowing financial companies involved to profit.
On the other hand, as a downside of introducing virtual asset-linked products, it was pointed out that when virtual asset prices rise, significant capital may flow into the virtual asset market, potentially increasing inefficiencies in resource allocation.
👉 Next Week: Renewal Guidelines for ‘Virtual Asset Operators’ Coming
According to The Seoul Shinmun, financial authorities plan to announce guidelines next week ahead of the renewal reporting for virtual asset operators.
According to the Financial Services Commission on the 22nd, guidelines for the renewal of licenses for virtual asset operators, starting in the second half of the year, will be released next week.
In South Korea, licenses for virtual asset operators, granted under the Specific Financial Transactions Act, were first implemented in 2021. Currently, 37 virtual asset operators have received licenses. Virtual asset operators are required to submit renewal reports every three years, so the assessment for this year’s second half renewal will commence.
A financial authority stated, “We plan to release renewal reporting guidelines next week along with proposed amendments to the supervisory regulations under the Specific Financial Transactions Act. We aim to provide detailed criteria to ensure a smooth renewal process.”
👉 FSC normalizes digital financial policy officer and establishes virtual asset Department
According to Yonhap News, the Financial Services Commission(FSC) has decided to formalize the temporary organization, the Financial Innovation Planning Division, into the “Digital Financial Policy Directorate,” and to establish a new department called “Virtual Assets Department” under it.
The FSC announced that on the 18th, the revised bill on the organizational structure of the Financial Services Commission and its affiliated agencies, containing these organizational restructuring details, was approved in the Cabinet meeting.
👉 DAXA Intensifies Investor Protection Ahead of Virtual Asset Law Enforcement
According to Newsis, the Digital Asset Exchange Alliance (DAXA), consisting of Upbit, Bithumb, Coinone, Korbit, and GOPAX, is intensifying efforts to protect investors ahead of the implementation of the Virtual Assets User Protection Act, which is set to take effect in one month.
According to industry sources on the 20th, DAXA is currently running a nationwide advertising campaign to promote awareness and implementation of the Virtual Assets User Protection Act.
As an extension, DAXA has strengthened its collaboration with financial authorities. A notable example is the joint publication with the Financial Supervisory Service in April, titled ‘7 Cases of Virtual Asset-Linked Investment Fraud.’ This publication includes key investor precautions and preventive measures.
That’s all for this week’s news.
We’ll be sure to bring you more updates through [Weekly Blockchain] next week, so stay tuned!
See you again next week!
