STO as the Key to a Financial Renaissance | Delio CEO James Jung About Security Tokens

In early February, South Korea’s major government agencies such as Financial Services Commission and the Financial Supervisory Service released the “Plan to Improve the Regulatory System for Issuing and Distributing Security Tokens”. The South Korean financial authorities said they plan to submit amendments to the Electronic Securities Act and the Capital Markets Act to the National Assembly in the first half of this year and implement both regulations as early as next year. The overhaul will allow the issuance of tokens in the form of securities, which has not been permitted until now. Moreover, assets that are recognized as securities, will be able to be issued and distributed as security tokens under the Capital Market Act.What are Security Tokens?Security tokens are digitalized forms of assets such as real assets (real estate, intellectual property rights, etc.) and financial assets (stocks, bonds, etc.) issued in the form of securities under the Capital Markets Act using blockchain technology. In other words, securities are issued in the form of digital assets or cryptocurrencies commonly referred to as Bitcoin and Ethereum. The only difference from existing digital assets is that they are recognized as legal securities under the Capital Market Act in South Korea.As an example of the use of security tokens, Blockstack, a U.S. blockchain startup, used STOs to raise funds for its business. In the real estate sector, the U.S. real estate fragment investment platform Realty is securitizing and distributing tokens as shares of real estate. German shipping company Vogemann raised funds with green ship tokens, and the Hong Kong government issued and sold $800 million in green bonds as STOs.Opening atypical microcap marketDue to the exclusion of yield securities and investment contract securities from the securities to be distributed, restrictions on the use of private placements and small public offerings, and restrictions on sales, securities are mainly distributed in the listed stock market. The South Korean government, however, intends to solve these problems with security tokens and revitalize the new ‘atypical small securities’ market.Since security tokens are easy to securitize, allow for a variety of small investments, and have ‘high circulation’ due to easy division and transfer of trading units, it makes them favorable for atypical small securities.How will tokenized securities impact investment markets?By allowing the issuance and distribution of security tokens, the local government aims to support the recent emergence of “securitization of various rights” and improve the issuance and trading of securities more efficiently and conveniently by utilizing distributed ledger (blockchain) technology. By utilizing security tokens, it will be easier to identify shareholders of unlisted stocks and convenient to issue and trade unlisted bonds in small units.Along with the security tokens, a new category of securities called “token securities” which only existed in the form of “physical securities” and “electronic securities will emerge. The biggest impact that token securities will have on the investment market is that it will open and activate the market for atypical securities, such as “yield securities” and “investment contract securities” that have recently emerged.Security tokens to revitalize the financial investment market?According to a report by Boston Consulting Group (BCG), the market for STOs is expected to reach $16 trillion by 2030. This is a huge market considering that the current digital asset market is around $76.8 billion. The local government stated that it will create two new licensing systems in the reform. Issuer account management organizations, which can directly register and manage security tokens, and OTC brokerage businesses, will allow the distribution of STO. These licenses will allow companies to legally enter the security token market.Currently, local companies are facing difficulties when issuing securities-like digital assets, however, with the STO emerging new investment streams are coming. Since security tokens are managed through relative securities laws, they are unlikely to deal with the same side effects as the existing digital asset market due to incomplete regulations. STO will be an opportunity to revive the financial investment market, so domestic securities companies are moving most actively to preempt the newly emerging market. In order to create an STO ecosystem, consortiums with related companies are being established, and Sandbox applications are increasing through affiliates.Becoming a global financial hubDespite the huge potential of the market, there are still many hurdles to overcome. The success of the STO industry will depend on how the detailed securities law is revised. If the focus is on institutionalization and activation rather than regulation, the market is bound to follow the same path as digital assets.Korea rapidly entered the digital asset market and was overtaken by foreign companies. Security tokens are the food of the future and a great opportunity, missing out on which can cost Korea a loss in becoming a global financial hub.Original (KR): https://n.news.naver.com/article/215/0001091379?sid=004

Japanese Bank Set to Launch Stablecoin This Year

Japanese commercial banks will reportedly begin issuing stablecoins from this year, following the passage of legislation regulating stablecoins in June 2022.The revised Payment Services Act, which came into effect on the same day, allows banks, trust companies, and money transfer operators in Japan to issue stablecoins, with registration required by the government. Stablecoins, such as Tether(USDT) and USD Coin(USDC), are designed as cryptocurrencies pegged to fiat currencies or other underlying assets to mitigate price volatility. The introduction of stablecoins is expected to bring innovation to cross-border remittances and payments, simplifying trade transactions.Major banks like Mitsubishi UFJ Financial Group (MUFG) and regional banks like Tokyo Kiraboshi Financial Group and The Shikoku Bank are preparing to issue their own stablecoins, utilizing a platform developed by G.U. Technologies on the Japan OpenChain, a public blockchain compliant with Japanese law.Source: CRYPTONEWS

South Korea Postpones Crypto Tax System Implementation Until 2025

- Parliament schedules a plenary session to defer digital asset taxation on December 23, KST- 20% tax on coin income delayed by two yearsThe South Korean ruling and opposition parties have agreed to delay the implementation of digital asset taxation until 2025. The coin exchange industry and investors, who were worried about the performance of taxes next year, can breathe a sigh of relief.An official from the National Assembly's Budget Office of Korea said, "As the ruling and opposition parties reached an agreement on the budget bill to delay the implementation of the financial investment income tax and the taxation of digital assets to be delayed for two years."The taxation rule sparked much controversy in South Korea when the government initially unveiled a 20% crypto earnings tax on those with cryptocurrency gains exceeding KRW 2.5 million ($1,946) that would come into effect in January of 2023 amidst the FTX meltdown. It was initially scheduled to come into effect at the beginning of 2023. However, as the one-year postponement bill passed the National Assembly last year, the implementation date was postponed to January next year.The recent delay determined that regulations to protect investors should be put first. Furthermore, taxes in cases where the fundamental law (the Industrial Rights Act) addressing fundamental issues such as investor protection was not passed might pose issues concerning tax payment compliance. The Luna collapse enhanced market volatility, resulting in a new crypto regulation legislation approach.Bang Ki-seon, 1st Vice Minister of Economy and Finance, explained at the tax subcommittee held on the 22nd of last month that "an institutional and legal preparedness is needed in a circumstance where the number of exchanges has reached from 36 entities in October (compared to 6 in November 2021)." However, as some members of the Democratic Justice Party stated, "A delay of another two years does not fit the tax principle."The coin sector then asked for a deferral, claiming that taxes might depress investor enthusiasm in a context where criteria for listing and investor protection have not yet been defined. Concepts such as purchase price calculation are required for taxation."Digital Asset Exchange Joint Consultative Body (DAXA)," a group of cryptocurrency exchanges that includes South Korea's most prominent companies, including Upbit, Bithumb, Coinone, Korbit, and Gopax, stated on December 22, agreeing upon the 'where there is income, there is tax' idea. However, due to a lack of time and tax research infrastructure, a two-further-years delay is needed.

Wall Street Experts Predict BTC Could Rise Up to $60,000 in the Second Half of the Year

As Bitcoin's price has surged by 70% this year, experts on Wall Street are expressing positive outlooks for the cryptocurrency in the second half of the year.Shamin Ho, the chief strategist at cryptocurrency exchange Bybit, emphasizes that Bitcoin's price in the upcoming months will depend on macroeconomic conditions. Improved market pressure resulting from factors like inflation and economic slowdown is expected to enhance investor sentiment in Bitcoin.Ho further highlights the significance of the upcoming halving scheduled for April next year, a process that reduces Bitcoin mining rewards by half approximately every four years. This halving is anticipated to contribute to a price rally. Echoing similar sentiments, Jagdeep Sidhu, chairman of blockchain network Syscoin, and Tim Shando, the CCO of cryptocurrency exchange Dexalot, also predict that Bitcoin could reach $60,000 in the third quarter under specific conditions. These conditions include a slowdown in US inflation and the implementation of clearer regulatory measures around digital assets.Source(KR): SEOUL ECONOMIC TV

Delio Launches Staking Service for Ethereum 2.0 and Five Other Digital Assets

​□Delio introduces staking service for five crypto assets​□Providing one of the lowest fees in the crypto market and an annual reward rate of up to 16.17%​□Staking for more than 60 digital assets to be launched soon, reaching Korea’s largest staking serviceOn November 24th, South Korea’s leading crypto bank Delio (CEO James Jung) announced a staking service launch for five digital assets such as Solana (SOL), Polkadot (DOT), Tezos (XTZ), Cardano (ADA), and Kusama (KSM).Staking offers crypto holders a way of putting their digital assets to work and earning passive income. Users can participate in the platform’s operation and earn rewards on cryptocurrency they own by depositing them and exchanging staked coins for interest rewards.However, not all coins can be staked. Among the consensus algorithms, staking is only available to cryptocurrencies that use the Proof of Stake (PoS) and Delegated Proof of Stake models to validate transactions. Proof-of-stake refers to a method of ensuring the stability of the network by validators generating and verifying blocks of the blockchain-based on stake, meaning that the more validators stake, the more rewards they will earn. In other words, a stake is required to participate in a proof-of-stake (PoS) network. Moreover, speakers receive rewards if they deposit coins in the blockchain either directly or through a validator. These include Tezos (XTZ), Cosmos(ATOM), and Ethereum 2.0.Aiming to provide the opportunity to earn more on the crypto, Delio launches a staking service with the lowest fees possible. Most current staking service providers have voiced safety concerns over foreign services, while domestic companies such as Upbit and Coinone impose a fee of up to 10% of the staking operations. On the other hand, Delio charges a staking service fee of between 3% and 6% for each digital asset to maximize client earnings and offer safe services.Furthermore, Delio offers an annual reward of up to 16.17% for each digital asset. It plans to add more than 60 crypto assets, reaching Korea’s largest staking service.According to a Delio representative, “We have introduced a competitive staking service exclusive to crypto enthusiasts providing safe ways to earn on digital asset services. In the future, we aim to provide our customers with the staking service for over 60 cryptocurrencies, including Ethereum 2.0.”Delio is Korea’s largest one-stop cryptocurrency financial service provider that obtains a Virtual Asset Service Provider (VASP) certificate. Delio provides safe crypto-back services such as savings, lending, and Vault. Using the Delio staking service is secure as it is carried out through the Crypto bank service. Moreover, customers can get consultations on service use by running the Delio Lounge in Gangnam district, South Korea.

14th Round of Staking is Live

Dear Delio Globla Users,We are pleased to announce that the 14th round of staking is now open with the lowest fees in the crypto market.Spend less on the fees and earn more with the most secure staking platform.- Details -□ Application Period: May 26 - June 1, 2023□ Eligible Staking Assets: Near(NEAR), Solana(SOL)，Polkadot(DOT), Tezos(XTZ)，Cardano(ADA), Kusama(KSM)* The staking period and reward rate for each supported asset can be found on their respective pages.□ Go to Delio Staking: https://delio.global/staking

Crypto Bank Delio to Support 5 New Digital Assets, Including Polkadot, Solana, and Tezos

• Delio Bank supports Solana, Polkadot, Tezos, Cardano, and Kusama• Five new digital assets staking services to be launchedSouth Korea’s leading crypto bank Delio is on the verge of listing five new digital assets and launching a staking service.Delio plans to release the staking service for a total of five cryptocurrencies such as Solana (SOL), Polkadot (DOT), Tezos (XTZ), Cardano (ADA), and Kusama (KSM), following the listing of those coins. Solana, Polkadot, and Tezos are currently open for deposits and withdrawals. Cardano and Kusama will go live on Delio Bank on November 4th and 8th (KST), respectively.“Delio reflects its customers’ needs in the global market by offering services for five new digital assets,“ the company’s representative said. “We hope the launch of staking will draw global attention.”Notably, Delio is the first and only crypto bank in South Korea to provide a Money Market Deposit Account-backed service and a Web 3.0 entity in crypto financial and blockchain services with government-level licenses such as MSB, VASP, and ISMS.The services apply various digital asset financial services, including savings, lending, trading, and withdrawals of funds from commercial banks, converting them to digital assets. Moreover, Delio offers a 3% annual compound interest rate for Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), which are being recognized as a new investment strategy in the era of high-interest rates.

Delio Launches DSP Savings Product With 3% APR

Dear Delio Global Users,We are pleased to inform you about the official launch of DSP Savings.Please kindly refer to the details provided below.□ DSP 3-Month Savings Program- APR : 3%- Minimum Quantity : 100 DSP- Maximum Quantity : 10,000,000 DSP- Application Period : Any timeGo to the DSP Saving Page: https://delio.global/savings/savingsDetail?id=254We respectfully request for your continued support.Sincerely,Delio.

01etc and Seoul Design Foundation Open NFT Gallery

The NFT marketplace 01etc, operated by Delio, Korea’s first crypto bank, opens an NFT exhibition in the Seoul Design Plaza (DDP) through collaboration with the Seoul Design Foundation. The NFT Gallery is organized under the themes of ‘Introduction to NFT’ where exhibition visitors discover the basic principles and concepts of NFT, the ‘NFT Exhibition’ section showing NFT artworks by established artists, and ‘NFT Designer Contest’ which is dedicated to the 01etc’s NFT Contest. 01etc has been teaming up with the Seoul Design Foundation to host the "DDP-NFT Collection Vol.1: NFT Designer Contest" since September 1st. The 01etc NFT content is based on the theme of dots, lines, and dimensions representing Dongdaemun Digital Plaza (DDP), a complex cultural area in Seoul created by famous architect Zaha Hadid. Any digital art representation, including paintings, drawings, photographs, and 3D submitted by participants, will go live on the exhibitions' displays.The second round dedicated to the NFT contest, which coincided with the gallery's opening, will continue to collect the NFT artworks by November 3, with the following second round exhibition on November 8. Alongside the various promotions for up-and-coming artists, a special winning artworks-focused exhibition will be conducted after the contest ends. More information about the NFT contest can be found on the 01etc webpage. To enhance the awareness of the NFT industry, 01etc conducted an educational seminar last month. Over 200 artists unfamiliar with NFTs had a chance to participate in the academic session and learn through the detailed explanation of every contest section, from the introduction to the fundamental ideas behind NFT issuance and how to utilize the platform.In congratulatory remarks, James Jung, CEO of Delio, stated that NFTs had built a creator economy where artists are the core of economic activity. "I hope that together with 01etc, many people will reach their financial goals and fulfill their dreams," he added. Kyung Don Lee, CEO of the Seoul Design Foundation, continued, "Amidst the global digital transformation across the countries, I hope that Korea will be actively supporting the global movement, as well as NFTs, which has emerged as a new entry point for modern artists."<span lang="EN-CA" style="font-family:&quot;Times New Roman&quot;,serif; mso-bidi-theme-font:minor-bidi;mso-ansi-language:EN-CA">

Bitcoin and Gold Move in Sync: Aligning with Safe Haven Gold Prices

The price movements of gold and Bitcoin(BTC) are currently exhibiting a notable synchronization, challenging the widely-held perception that gold is a secure asset while Bitcoin carries more risk. The extended period of high Bitcoin prices has engendered growing confidence among investors, leading to an increasingly parallel price trend with gold, defying conventional expectations. While Bitcoin(BTC) has displayed greater volatility, the overall trajectory has closely mirrored that of gold. Experts attribute this phenomenon to the enduring high prices of Bitcoin, which have cultivated a strong belief in its intrinsic value among market participants, resulting in a convergence with gold's price trend. In recent times, a growing number of experts have begun evaluating Bitcoin's value on par with gold. At the time of writing, Bitcoin(BTC) and gold are traded at roughly $26,400 per coin and $1,940.45 per ounce, respectively.Source(KR): SEOUL ECOONOMIC DAILY