Korea’s Oldest Bank Is Building a Blockchain-Based Security System

According to a report published on Aug. 14 by local news outlet TheKoreaTimes, Shinhan Bank signed a memorandum of understanding with financial technology startup Ground X and blockchain developer Hexlant to develop a blockchain security system.

South Korea’s oldest bank, Shinhan Bank, partnered with two other companies to develop a blockchain-based security solution.

Per the report, the deal will see the institution’s partners jointly develop a Private Key Management System for its banking services.

Korea’s Shinhan bank to enhance security with blockchain

Ground X is the blockchain unit of South Korean messaging giant Kakao, and is reportedly expected to provide a blockchain-based platform. Hexlant develops the infrastructure to feature an anti-cracking program for the platform.

User-friendly UX will help blockchain adoption says Shinhan

The first tests of the new systems are expected to take place in October. One Shinhan Bank official commented on the development:

“Blockchain technology has gained attention from the financial sector for its advantages, but financial firms have experienced difficulties in applying the technology to their system. … Shinhan Bank will provide a convenient user-friendly interface under the deal with Ground X and Haxlant.”

As Cointelegraph reported earlier this month, Shinhan Bank is also developing a distributed ledger technology-enabled stock lending platform after signing an agreement with financial services company Directional.

Known Crypto-Hater Sherman to Chair Congressional Subcommittee on Investor Protection

The anti-crypto United States Congressman Brad Sherman (D-CA) has been elected to serve as Chairman of the Subcommittee on Investor Protection, Entrepreneurship and Capital Markets.

On Dec. 5, Chairwoman of the House Financial Services Committee Maxine Waters (D-CA) announced that Sherman was elected to take up the position of Chair at the subcommittee that oversees the Securities and Exchange Commission (SEC), the New York Stock Exchange and the Financial Industry Regulatory Authority.

Sherman vs crypto and maybe the internet

Sherman, who is an American politician serving as a Democratic member of the U.S. House of Representatives since 1997, is known to be a formidable opponent of Bitcoin and cryptocurrencies in general.

Largely pro-crypto congressman and Sherman’s colleague on the Financial Services committee Warren Davidson (R-OH) recently told Cointelegraph that Sherman really doesn’t like anything in the cryptocurrency space. Davidson went on to say:

“In my view, Sherman’s goal is essentially to try to ban the internet. He’s like ‘we’re going to ban crypto, we need to ban crypto, the only reason to have any crypto asset is to launder money and evade taxes. Go back, rewind the tape. Every hearing on crypto, that’s Brad Sherman. He doesn’t like the space.”

Sherman has expressed opposition to any money that challenges the U.S. dollar’s role as global reserve currency. He continues to argue for an outright ban on cryptocurrency. This outspoken negative stance towards crypto earned him some criticism from Bitcoin bull Max Keiser, who said that Sherman is going to a gunfight with a knife, adding:

“He has failed to take on board exactly what the dimension of this battle is going to be … He doesn’t understand he’s already lost.”

Crypto could ‘displace or interfere with dollar’

In October, Sherman appeared to give unlikely weight to the idea that a disruptive financial instrument, such as cryptocurrencies, can succeed in taking power away from the dollar. He said:

“Cryptocurrency either doesn’t work, in which case investors lose a lot of money, or it does achieve its objectives perhaps and displaces the U.S. dollar or interferes with the U.S. dollar being virtually the sole reserve currency in the world.”

Kik Shutting Down Popular Messaging App Due to ICO Legal Battle

The Canadian social media and messaging app company Kik is considering shutting down its popular Kik messaging app.

70 reported layoffs at Kin subsidiary

In a Sept. 23 article, Israeli tech publication CTech Calcalistit cites two anonymous sources at Kik, claiming that the Canada-based firm is considering closing down its messaging app.

A subsequent blog post by Kik CEO Ted Livingston confirmed the reports, stating that the firm will shut down the Kik app, reduce its staff to 19 people and focus on its Kin (KIN) token’s development.

70 employees have reportedly received layoff notices and have been given the option to transfer to a new company that operates in the same sector.

Legal troubles

In today’s blog post, Livingston said that Kik’s decisions to downsize and shut down its messenger were the result of the firm’s need to manage resources in a legal battle with the United States Securities and Exchange Commission (SEC).

Kik has been fighting its initial coin offering’s designation in court ever since the SEC sued the Canadian startup for an allegedly unregistered $100 million token offering.

Steven Peikin, Co-director of the SEC’s Division of Enforcement, said at the time that by conducting its Kin tokens sale, Kik “deprived investors of information to which they were legally entitled and prevented investors from making informed investment decisions.”

Kik says SEC does not have strong evidence

Kik’s lawyers stated that the SEC took quotes out of context, twisted facts in order to support their allegations, and misrepresented the facts because they have no strong evidence to support their claims.

In the meanwhile, Kik launched a $5 million crypto initiative to fund its lawsuit against the SEC, which was taken over by the Blockchain Association, a collective of advocates involved with the blockchain industry.

Kik believes that the Blockchain Association “will be in the best position to objectively allocate the resources to the highest impact initiatives.”

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