The South Korean government announced today that crypto exchanges will face punishment if they have not voluntarily registered with the country’s authorities by September 24. This new set of regulations will reportedly affect both exchanges based in South Korea and foreign exchanges that operate in Korean markets. According to the release, that includes any exchange where the Korean language is supported, marketing is geared toward Koreans, or payments can be made using the Korean won. Under the Specific Financial Information Act, the punishment for exchanges that continue to operate without registration is up to five years in prison or a …

The central bank of South Korea has chosen a blockchain subsidiary of local internet giant Kakao as a technology provider for its digital currency pilots. Kakao’s Ground X won the Bank of Korea’s central bank digital currency (CBDC) tender, becoming the principal technology supplier for blockchain-based digital won simulations, local news agency Korea JoongAng Daily reported Tuesday. The central bank announced that Ground X will participate in the South Korean CBDC project in cooperation with United States-based blockchain company ConsenSys as well as other Kakao affiliates like KakaoBank and Kakao Pay. Focused on infrastructure and decentralized applications for the Ethereum …

Eun Sung-soo, chairman of South Korea’s Financial Services Commission (FSC), said that foreign crypto exchanges that deal in the Korean won must comply with the country’s Anti-Money Laundering (AML) standards. According to The Korea Herald on Tuesday, Eun made these comments while fielding questions from lawmakers about the FSC’s plans to regulate crypto exchange giant Binance. Eun reiterated the need for overseas exchanges offering won-denominated crypto trading pairs to comply with the same Anti-Money Laundering standards as platforms based in the country. As part of this compliance, these foreign exchanges will have to register with the Korea Financial Intelligence Unit …

Samsung SDS, the information and communication technology (ICT) arm of Samsung, launched a new service named Paperless to provide reliability and transparency of documents in a cloud environment. Launched as a cloud-based blockchain-as-a-service (BaaS) solution for enterprises, Paperless manages sensitive documents such as contracts, consent forms and certificates on blockchain to prevent forgery and falsification. According to the official announcement, the new service can be used in various fields such as voting or tasks that require various proof documents. Paperless also enables the management of documents that need to be disposed of after a certain period by encrypting and storing …

Affiliates of South Korean internet giants Naver and Kakao are among the top contenders to work on the country’s first central bank digital currency (CBDC) pilots. On Monday, the Bank of Korea (BoK) announced the preliminary bid results for participating digital won pilots, local news agency Yonhap reported. Kakao’s blockchain subsidiary Ground X, Naver-affiliated Line Plus and conglomerate SK Group were the top three companies that submitted applications for a 10-month CBDC pilot contract. The BoK now plans to select an operator to run a blockchain-based simulation project for the digital won. The bank expects to reach a decision next …

According to a July 11 report from The Korean Economic Daily, the group’s banking unit, Woori Woori Financial Group has become the latest major South Korean financial institution to announce it will launch digital asset custody services. Bank, is partnering with Bitcoin-based fintech solution firm, Coinplug, to establish a digital asset custody joint venture, dubbed D-Custody. Coinplug will be D-Custody’s largest shareholder, followed by Woori Bank. The joint venture is expected to be incorporated in the coming weeks. Existing Korean legislation maintains that domestic entities are not able to access the services of cryptocurrency exchanges, meaning the country’s banks can …

“Shitcoin” may no longer be solely a term used to describe altcoin projects with questionable value propositions, as one South Korean university professor has taken the term to a more literal dimension. Cho Jae-weon of the National Institute of Science and Technology in Ulsan, South Korea, has created an eco-friendly toilet system that produces fertilizer and energy from human excrement. Jae-weon, a professor of urban and environmental engineering, said the toilet system incorporates a vacuum pump that redirects human waste into an underground tank to produce biogas (methane). The professor’s experiment is reportedly utilizing the biogas to power a university …

An interagency investigation into suspected crypto fraud and money laundering in South Korea has led to the discovery of 1.69 trillion won (about $1.48 billion) in illegal overseas cryptocurrency transactions. According to The Korea Times, 33 people have been implicated by the Seoul Central Customs for contravening the country’s ban on overseas crypto trading. Detailing the alleged crimes committed, Lee Dong-hyun of the Seoul Central Customs’ investigation unit revealed that the criminal acts fell into three categories. The first group involved people who engaged in foreign crypto exchange trading which is banned in South Korea. These persons allegedly contracted third-party …

Household debt for younger Koreans — those born from the 1980s onward — has surged to $22.7 billion, up from $3.9 billion from last year. Data from South Korea's Financial Supervisory Service (FSS), released today by Representative Kim Han-jeong of the Democratic Party of Korea, reportedly indicates that the high levels of lending are attributable to an increase in investments in cryptocurrencies, stocks and real estate. While millennials and Gen Z accounted for roughly 34% of total household debt in Korea in 2019, that figure grew to 45.5% by 2020 and is now at 50.7%. Rep. Kim has called for …

Bithumb’s Hong Kong affiliates are reportedly facing a civil suit for breach of contract. According to a Tuesday report by the Korea Times, the suit is being initiated by a former Bithumb partner in Thailand, which is accusing the South Korean-headquartered exchange of unilaterally halting its business in Thailand and causing major losses. The Thai firm — which remains unnamed — is reportedly preparing to file a lawsuit against Bithumb’s Hong Kong subsidiaries, including Bithumb Global Holdings and GBEX, as well as top company executives in July. According to the plaintiff firm, Bithumb’s Hong Kong-based entities were allegedly involved in …

Shinhan Bank, one of the largest banking institutions in South Korea, has entered into a partnership with Klaytn, a global blockchain platform developed by Kakao's subsidiary Ground X. According to the Monday announcement, Shinhan Bank has joined Klaytn’s blockchain governance council and become a member of the co-governance of the Klaytn blockchain. As part of the new partnership, Shinhan will be also involved in the development of Klaytn-based digital services to support fintech innovation. Launched in June 2019, Klaytn is a blockchain service provider focusing on integrating blockchain solutions into enterprise-grade infrastructures. The Klaytn blockchain is a hybrid blockchain network, …

Bithumb, a major South Korean cryptocurrency exchange, is moving forward with trading restrictions for its employees by banning its staff from trading on its platform. According to an official Friday announcement, Bithumb will completely ban its employees from buying or selling crypto using a Bithumb account starting this month. The restriction intends to strengthen internal regulations and improve transaction transparency on Bithumb exchange, the company said. As part of the measure, staff members already sent written statements regarding account withdrawals last month. Additionally, the exchange will implement a permanent monitoring system including self-audits and an internal reporting system, the announcement …