It was revealed that the domestic crypto asset market in South Korea shrank significantly in the second half of last year as events that shook investor confidence continued, such as the Terra Luna crisis and FTX bankruptcy.

On the 19th of March, the Financial Intelligence Unit (FIU) under the Financial Services Commission announced that it had conducted a fact-finding survey in the second half of 2022 on 36 reported operators to understand the current status of the domestic cryptocurrency market.

The survey aimed to understand the current state of the market by analyzing several key metrics such as market capitalization, transaction size, operating profit, and user accounts.

According to the FIU, in the second half of last year, compared to the first half of the domestic crypto asset market, the market capitalization, transaction size, and operating profit decreased significantly.

Looking at each item, the average daily transaction volume of crypto assets as of the second half of last year was 3 trillion won (2.3 billion USD), down 43% from the first half (4 billion USD). The amount of deposits in USD was 2.75 billion, down 38% from the first half (4.5 billion USD).

The photo shows trends in crypto asset transaction volume and market capitalization in 2022, according to the Financial Services Commission.

The number of crypto asset items also decreased. As of the first half of last year, the number of items listed on the crypto asset market was 1371, but in the second half it decreased by 9 to 1362, and even excluding duplicate listings, the number decreased from the second half of the previous year (638) to 625.

The Financial Services Commission cited a drop in investor confidence as the cause of the market contraction. An official from the Financial Services Commission said, “The decline in prices due to the contraction of the real economy, the Terra Luna crisis, and negative events such as FTX bankruptcy has led to a decline in trust and continued weakness in the market. There was also a problem of investor confidence due to problems, etc.”

On the other hand, price volatility decreased. Price volatility in the second half of last year recorded 65%, down 6%p from the first half, which was 73%.

The number of registered user accounts was 11.78 million, down 1.32 million (10%) from the second half of the previous year (13.1 million). Deposits in USD and the number of users, which are considered potential future investment demand, also decreased.

In the second half of last year, the deposit in won in the crypto asset market recorded 260 million won (200,000 USD), down 38% from the first half (450,000 USD), and the number of transactions users was also counted at 6.27 million, a decrease of 630,000 from the first half.

Average daily virtual asset market deposits in Korean won for each month of 2022, provided by the Financial Services Commission.

The Financial Services Commission pointed out the contraction of the real economy due to interest rates and inflation, and the decline in trust due to negative events such as the Luna crisis and FTX bankruptcy as the causes of the cryptocurrency market decline.

However, price volatility decreased during this period, and conservative fund management emerged as the preferred investment strategy. The proportion of investment in major crypto assets such as Bitcoin increased, compared to non-mainstream crypto assets called ‘Jobcoin,’ and the total operating profit of crypto asset operators decreased by about 662% compared to the second half of the previous year.

The implementation of the ‘Travel Rule,’ which transmits sender and receiver information when more than 1 million won (765 USD) is shipped, was also analyzed in the survey. The amount of transactions between domestic exchanges subject to the travel rule was only about 25% of the total amount of shipments, indicating that more needs to be done to combat money laundering.

The findings of the survey are a cause for concern, and the Financial Services Commission has said it will work with an autonomous consultative body between operators to respond to the market’s crises. The cryptocurrency market’s contraction highlights the need for stronger regulation and oversight to ensure investor protection and prevent market instability.

#Korean #crypto2023 #Terra #FTX #azcoinnews

This article was republished from azcoinnews.com

South Korea-based Shinhan Investment & Securities has recently announced that it will be providing blockchain training to all its executives and employees. This move is aimed at strengthening their digital capabilities and enhancing digital literacy.

The blockchain training will be conducted online over four sessions and will cover various topics, such as the introduction to blockchain, industry changes affecting blockchains, such as the finance and energy industry, retail and content business, and medical and logistics.

In addition to the online training, Shinhan Investment & Securities has invited outside lecturers to give a special lecture on “Wealth of the new era, digital assets are coming” at their headquarters building on the 10th of March.

The company plans to use this education as a starting point for expanding its new digital business. It aims to continuously provide training to its executives and employees to reduce the information gap between the field department and related departments and quickly respond to changing trends, blockchain, and digital assets.

Shinhan Investment & Securities’ commitment to digital education is timely, as the use of blockchain and digital assets is increasing in various industries, such as finance and logistics. The company’s proactive stance toward digital education is expected to provide them with a competitive edge in the rapidly evolving business landscape.

This education initiative demonstrates Shinhan Investment & Securities’ foresight and commitment to innovation, as they strive to stay ahead of the curve in the digital age. With this latest initiative, Shinhan Investment & Securities is well-positioned to drive innovation and capitalize on the opportunities that digitalization brings.

#Shinhan #Korean #Blockchain #crypto2023 #azcoinnews

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Bank of Korea Governor Lee Chang-yong has highlighted concerns about the high percentage of Korean adults with cryptocurrency accounts.

Speaking at the “Country-specific Central Bank Digital Currency (CBDC) Implementation Experience and Future Plans” high-level panel discussion at the BIS Innovation Summit Program, hosted by the Bank for International Settlements (BIS), Governor Lee emphasized that “One of my problems is that 16% of adults in Korea have a cryptocurrency account.”

Governor Lee acknowledged that Korea is one of the countries where crypto trading is well developed and digitization has been carried out at a high level. He noted that opinions on cryptocurrencies vary, with some people believing that crypto assets are sheer hoaxes and should be banned outright, while younger generations believe that CBDCs could be a good target for developing cryptography and other digital technologies.

Compared to other countries, Governor Lee explained that stakeholders such as banks, big tech companies, and individuals in Korea are more positive about the introduction of CBDC. He stated that in Korea, large corporations are already investing in crypto assets, with manufacturers interested in Samsung Electronics already having blockchain wallets in their smartphones.

President Lee also shared that they plan to launch an NFT trading platform on smart TVs to enable people to view NFT screens on the screen. However, he acknowledged that if big tech companies participate in CBDC, cross-border cooperation beyond the traditional regulatory system will be required to address issues of privacy protection.

The discussion was attended by Bank of Korea Governor Lee Chang-yong, European Central Bank (ECB) President Christine Lagarde, French Central Bank Governor François Villeroy de Galhau, and Monetary Authority of Singapore (MAS) President Ravi Menon.

#Korean #crypto #crypto2023 #BTC #azcoinnews

This article was republished from azcoinnews.com

South Korean karaoke platform Somesing recently faced a cyberattack, losing over $11.5 million worth of its native token, SSX. The attack occurred on January 27th, sending shockwaves through the cryptocurrency community.
The attack is believed to be the work of highly skilled hackers specializing in virtual asset theft. Notably, there is no evidence of involvement from Somesing's team members, as stated in the platform's official response. Somesing reported the incident promptly to the National Police Agency. The platform plans to collaborate with Interpol to investigate the cyber breach thoroughly.
Somesing is working alongside the Klaytn Foundation and the cybersecurity firm Uppsala Security, an Interpol partner, to track down the attackers. The platform's main objective is to identify the responsible party quickly. It aims to take appropriate actions, including freezing the stolen assets and pursuing legal measures against those behind the cyberattack.
Suspension of Services by Major Exchanges
Following the security breach, major South Korean cryptocurrency exchanges temporarily suspended deposit and withdrawal services for SSX, including Upbit, Bithumb, and Coinone. These exchanges also warned their users about the potential for increased price volatility. However, other exchanges, such as HTX and Gate.io, which also list SSX, did not take similar precautionary measures.
Somesing operates on the Klaytn blockchain, employing a unique model encouraging users to upload their karaoke recordings. In return for their contributions, users are rewarded with SSX tokens. These rewards are funded by fellow users who donate tokens to support their preferred karaoke performers. The distribution model allocates 60% of donated tokens to singers and 20% to Somesing, with the remaining portion divided for copyright fees and community maintenance.
Cybersecurity Concerns in the Cryptocurrency Sector
Despite this incident, concerns surrounding cybersecurity in the cryptocurrency sector persist. The Somesing cyberattack is just one in a series of recent security breaches. Notably, the attack on Somesing follows an $81.5 million hack on the Klaytn-linked protocol Orbit Bridge earlier in the same month. However, reports suggest that the total volume of cryptocurrency hacks in 2023 witnessed a significant reduction, dropping by over 50% compared to the previous year.
The Somesing cyberattack underscores the ongoing challenges of ensuring the security of blockchain-based platforms. The platform's proactive response and collaboration with relevant entities demonstrate a determined effort to address the breach and protect users after this incident.
#hacking #Korean #attack

South Korean authorities are intensifying their efforts to crack down on the alleged crypto fraud involving Terra and Luna. The latest developments reveal that the prosecutors have seized assets worth KRW 414.5 billion (approx. $347 million) from the management team of Terra. The amount also includes Do Kwon’s alleged involvement of KRW 69 billion (approx. $57 million).

According to KBS News, prosecutors have also requested Binance to stop Do Kwon from withdrawing cryptocurrencies. Do Kwon is allegedly planning to exchange a large portion of his property for Bitcoin and transfer it to exchanges. The report further states that the prosecutors have put a freeze on Do Kwon’s domestic properties, including apartments in Seoul and land in Gyeonggi Province, Hwaseong, and Taean.

While the other members of the Terra management team face asset freezes, Do Kwon’s situation is reportedly different. Prosecutors have not found any assets that can be seized from him, as he allegedly transferred a significant portion of his assets to overseas exchanges in the form of Bitcoin.

The crypto fraud scandal involving Terra and Luna has been making headlines since last year. Prosecutors have accused the management team of fraudulently raising funds from investors by promoting their digital currencies as an alternative to stablecoins. The team allegedly misrepresented the assets backing the digital currencies and exaggerated their expected returns, which led to massive losses for investors.

South Korean authorities have been cracking down on crypto-related fraud cases, and the Terra and Luna scandal is one of the latest cases. The incident serves as a reminder to investors to exercise caution when investing in digital currencies and to thoroughly research the project before investing.

#TERRA #Dokwon #Korean #crypto2023 #azcoinnews

This article was republished from azcoinnews.com