In the Web 3.0 Era, Blockchain Experts' Perspectives on the Future of Capital Markets

Upbit Operator Dunamu Hosts 'Upbit The Conference (UDC) 2023'
"Innovating Approximately $900 Trillion in Assets with Blockchain and Providing More Liquidity"
"Bitcoin Prices Could Rebound Significantly When Tightening Policies Ease, Attracting Asset Managers' Interest"

"In the Web 3.0 era, various blockchain tokens can be interconnected. Assets worth $900 trillion (approximately 119 quadrillion 3,400 trillion KRW) can be revolutionized through blockchain, providing greater liquidity," said Wally Yu, Solutions Architect at Chainlink Labs.

As the 'Web 3.0' era approaches, where data ownership belongs to individuals, blockchain experts from home and abroad gathered in one place to envision the future capital market. At the 'Upbit The Conference (UDC) 2023' held by Dunamu, the operator of the domestic virtual asset exchange Upbit, on the 13th at the Grand Walkerhill Seoul in Gwangjin-gu, Seoul, 39 blockchain experts from 29 countries participated as speakers.

Wally Yu, Solutions Architect at Chainlink Labs, is giving a presentation at the 'Upbit The Conference (UDC) 2023' held on the 13th at Grand Walkerhill Seoul in Gwangjin-gu, Seoul.
[Photo by Dunamu]

Wally Yu, Solutions Architect, stated, "The Cross-Chain Interoperability Protocol (CCIP) solution launched by Chainlink Labs connects different blockchains, and its collaboration with traditional financial markets and potential are just beginning to emerge." He added, "All banks are coming to discuss how to tokenize traditional assets and put them on the blockchain, which will reduce cumbersome tasks, increase liquidity, and greatly help in finding other investment opportunities." He also noted, "Compared to traditional stock, real estate, and derivatives markets, DeFi (decentralized finance) is currently a small market," but "the problem with traditional markets is the lack of transparency," he pointed out. He continued, "Blockchain is transparent because everything that happens is open to everyone," adding, "If traditional financial companies utilize this, they can solve problems that have not been smoothly resolved until now."

Oh Se-hyun, Vice President of SK Telecom, said, "Web 3.0 builds a trust infrastructure through transparency, openness, and censorship resistance, enabling the digital economy," and "Regarding Bitcoin prices, once market uncertainties such as the easing of the U.S. Federal Reserve's (Fed) interest rate hikes are removed, a full-fledged rebound is expected, which will attract the attention of asset management firms," he emphasized.

Expectations for the institutionalization of virtual assets also followed. Recently, news emerged that BlackRock, a global asset management firm, registered its Bitcoin spot Exchange-Traded Fund (ETF) with the U.S. Depository Trust & Clearing Corporation (DTCC), raising market expectations for the U.S. Securities and Exchange Commission's (SEC) approval of spot ETFs. Emily Parker, Executive Director of CoinDesk, predicted, "A Bitcoin spot ETF will soon appear in the U.S.," and "as a result, prices of crypto assets such as virtual assets and non-fungible tokens (NFTs) will rise." Vice President Oh Se-hyun forecasted, "If the Bitcoin spot ETF is included, a capital market worth about $30 trillion could be unlocked."

Alex Zhebrik, Manager of Chainalysis Asia-Pacific (APAC) Research Division, is giving a presentation at the 'Upbit The Conference (UDC) 2023' held on the 13th at Grand Walkerhill Seoul in Gwangjin-gu, Seoul. Photo by Dunamu

There was also an outpouring of analysis on the regulatory status. Alec Zubrick, Manager of Chainalysis Asia-Pacific (APAC) Research Division, said, "South Korea is an 'early mover' in virtual asset regulation," noting that "Anti-Money Laundering (AML) and virtual asset regulations have been established and implemented since 2021." However, "illegal funds amounting to $934 million have flowed into South Korea, indicating a high level of virtual asset threats," he said, adding, "Chainalysis's 'KYT' tracks illegal transactions by adding various data weekly from listed exchanges and the dark web." He advised, "Continuous and smart transaction monitoring is necessary for cybercriminals."

Vice President Oh Se-hyun said, "It may not be easy for authorities to lift all regulations at once, but progress is being made step by step," adding, "Regarding securities issues, the lawsuit result of Ripple in the U.S. concluded that it is a security when investing as an institutional investor but a commodity for individual investors," and "the European Union's (EU) digital asset regulatory bill, MiCA, is also (about to be implemented)," he said. He explained that the issuance of guidelines ultimately means resolving uncertainties, which can be reassuring for companies.

Kim Gap-rae, Research Fellow at the Korea Capital Market Institute, said, "Clarity is more important than regulating more or less," and urged, "When the government tries to build new infrastructure, it must understand new regulatory or legislative trends." He added, "For example, if the U.S. allows Bitcoin spot ETFs, South Korea will also consider approving these ETFs, but there is currently no system in South Korea to regulate Bitcoin custody," predicting that "competition among virtual asset companies is inevitable." He continued, "The more we understand the regulation of custodians, the better we can adapt to new types of ETFs and expand related operations in South Korea."

Meanwhile, UDC, the country's representative blockchain conference, has attracted over 19,100 participants from more than 1,190 companies over the past five years, with more than 150 cumulative sessions held. Until now, the event focused on 'technology,' but starting from the 6th edition this year, it has expanded to cover all social sectors such as 'policy, finance, technology, culture, and trends.' Song Chi-hyung, Chairman of Dunamu, stated in his keynote speech at UDC 2023, "As blockchain gradually expands its influence across the economy, culture, and society, UDC has been reborn as a comprehensive conference that encompasses everything about blockchain."