South Korea’s Shinhan Financial Investments brokerage will now offer peer-to-peer stock lending via the blockchain as we can read today in some of the best cryptocurrency news sites.
The new service was introduced this year and now the individuals will be able to borrow and lend securities with other individuals face to face rather than using an intermediary. Some of the local Korean media reported the news earlier today. The securities lending and borrowing transactions are very expensive and inefficient for everyone. The commissions can also be very high and accurate information could be difficult to obtain. By using a peer-to-peer service based on the blockchain, the individual owners of stock can be able to lend their shares cheaply and directly to others earning a few in the process. The individual short sellers will also be able to borrow some stock from the counterparties without having to pay huge fees.
South Korea’s Shinhan brokerage is related to the country’s second-largest banking group by assets and is now expanding its capability by cooperating with a Korean company that has been permitted by the Financial Services Commission in order to provide stock lending and borrowing. The Sandboxes are being aggressively pushed by the current administration which lifts some of the regulatory pressure for testing the technologies and services. The company received its exception back in May under the Financial market sandbox program that was announced by the FSC.
Shinhan Bank was very aggressive in the blockchain pursuit. Just two years ago, it started using the technology for verification of gold bars and it later utilized it for interest rate swaps and cross border remittances. Also, the bank will use the technology for loan verification and will allow the customers to submit documents that need to be on paper in the past and authorized in person and signed manually.
As we can read in the altcoin news today, most of the banks in Korea are enthusiastic just as Shinhan is about blockchain rather than crypto. They are following the official government stance but they are running counter to the customers’ appetite for altcoins. The bank was positive on crypto and is now even accepting deposits from crypto exchanges.
E-Commerce Giant Rakuten Launched Its Own Crypto Exchange
“The app also features many useful functions that allow customers to effectively manage their crypto assets, such as confirmation of assets deposited in Rakuten Wallet, the purchase and sale of crypto assets, and real-time chart rate confirmation.”According to the company, all of the wallets will be separating the crypto assets from the investors and from the company itself via trust accounts provided by the Rakuten Trust. With the crypto industry hack overload in Japan, this represents a good move to satisfy the financial services agency of the country. Rakuten Wallet is expected to make a boom on the market and according to the analyst Joseph Young, the company has a customer base of more than 1.2 billion individuals making it among the most important companies. The Rakuten Wallet is only expected to operate in Japan with a population of more than 130 million. The Japanese Yen accounts for more than 10% of all global bitcoin trading volume so as according to Young, the actual share that the Yen has of the crypto market is much larger because the Japanese exchanges are known for not inflating their volumes. As noted in the latest cryptocurrency news, the country’s companies have long been known as adopters of new technologies and Rakuten wallet will only boost the adoption of cryptocurrency in the country.
Silvergate Bank Will Expand Services Including Cryptocurrency Lending
Telegram Open Network Will Finally Launch On October 31st
“Telegram was the first big project that legally prohibited investors from selling their allocation. Investors usually just share their allocations with friends, without signing documents.’’The purchase agreement which was written for Telegram by the US legal powerhouse Skadden, Slate, Meagher, and Glom LLP according to one investor stipulates that the buyers of grams may not offer pledge, swap, sell and encumber or dispose of their tokens directly and indirectly. The investors may sell any securities convertible into or exercisable or exchangeable for the investment contract between an investor and the company. The issuance of the tokens is conditional upon the investors’ compliance with the rule. One investor stated for the latest cryptocurrency news:
The future issuance of tokens is conditional upon the investor’s compliance with this rule. If Telegram learns the investor broke the agreement, it can cancel the allocation.
Blockchain CEOs Tired Of The South Korean Regulation: Report
‘’Experts point out that domestic blockchain projects are flocking to foreign exchanges largely due to tougher domestic cryptocurrency exchange market conditions. Investors cannot make or withdraw deposits in the Korean currency at Korean exchanges’’If we don’t include the nation’s four largest exchanges, some of the 200 smaller exchanges cannot even open real-name virtual accounts and this is one of the reasons why crypto investors cannot benefit from the protection systems. The international players such as China’s BW.com, Bitholic and Binance Labs sense the demand from South Korea hence they are either opening Korean won markets or in this case, Binance Labs is only sponsoring the blockchain efforts. Only this week, Japan as one of the governments that openly claim to foster crypto exchange innovation while still has a strict licensing scheme added another platform to its domestic economy in the form of Rakuten Wallet. These moves are also impacting other exchanges and market players' share of the market. As a result the South Korean exchanges are less appealing in 2019 because of the low volume and out of the top one hundred in the world, there are only a few exchanges that are located under the jurisdiction in Seoul. Other issues faced by the local include added responsibility for loss or theft of the customers’ funds. Earlier this month, the commentators warned that the existing restrictions on cryptocurrency by the regulators will throttle attempts to foster blockchain innovation as read in the latest cryptocurrency news:
“It is no exaggeration to say that 97 percent of domestic exchanges are in danger of going bankrupt due to their low volume of transactions’’
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