South Korean cartel enters Bitcoin remittance market

Major South Korean conglomerate Dongbu Group to enter Bitcoin remittance market
28 August 2017   778

Dongbu Group, a large South Korean conglomerate, producing industry, chemical, shipping, insurance and financial products, has announced a partnership with Bitcoin remittance service provider Sentbe in order to enter the Bitcoin remittance market. The move follows the legalization of “micro” Bitcoin remittances by the Korean government.

Dongbu Group announces partnership with Sentbe Image Credit:

As reported, Dongbu Group is collaborating with Sentbe through its savings bank subsidiary, the Dongbu Savings Bank. On top of that, according to an official of the savings bank, a Memorandum of Understanding (MOU) was already signed by the partners to prepare for the fourth industrial revolution era.

We have been working on this business alliance to prepare for the fourth industrial revolution era under the traditional savings bank business.

An official from the Dongbu Savings Bank

“This MOU is aimed at securing joint business opportunities by exploring new business models based on new technology and expertise of the WSBI overseas affiliate network,” the announcement details.

Thus, the new law legalizes Bitcoin foreign exchange transfers for small sums. 

Sentbe is in the process of being approved as a “micro-foreign remittance business,” the bank reveals, adding that it is preparing to expand the market of micro-foreign remittances.

SEC May Signal Some Flexibility on ICOs

Looks like senior advisor for digital assets and innovation at SEC is not 100% against ICOs
14 December 2018   41

Some blockchain projects may be able to circumvent the requirements of US securities laws by contacting the Securities and Exchange Commission (SEC) for a so-called non-action letter. As SEC consultant on digital assets and innovations Valerie A. Szczepanik explained, such letters will not be issued often, but this does not mean that they cannot be received at all.

I think that’s a way forward for a lot of people who want to implement some of these things that may not exactly fit in the format of the rules that we want. 

Valerie A. Szczepanik

Senior advisor for digital assets and innovation, SEC

According to advisor, issuers of tokens have three ways to comply with the requirements of the laws: register an offer of securities, declare an exceptional case, or "make sure they're not a security."

In certain cases, the SEC may decide that “maybe this doesn’t fit the letter of our law or regulation but it fits the spirit and we can accomplish all the goals of investor protection”. In this scenario, the SEC may indeed issue such a letter, which will indicate that its employees do not recommend taking legal measures against a particular issuer.

The letters set forth exactly what the person plans to do or the entity plans to do and if it’s something that the SEC feels comfortable with we can release a no-action letter for exemptive relief saying ‘we can recommend no enforcement action.

Valerie A. Szczepanik

Senior advisor for digital assets and innovation, SEC

As reported, her remarks signaling a modicum of flexibility are notable in light of SEC Chairman Jay Clayton’s advice last month to anyone raising money by selling a token that they should “start with the assumption that it is a security.”

Speaking about the principles of recognition of tokens as securities, Valerie recommended to take into account the structure of sales. According to her, only in rare cases the token will not be recognized as a security. Most often, investors expect to profit from investments in such proposals, which is enough to recognize them as the spread of securities.