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South Korean Crypto Lending Firm Delio Is Under Investigation By Regulators

The company reportedly denied any exposure to troublesome sister loan company Haru Invest before suspending the transfers earlier this month.

According to a report by local news outlet Digital Asset, South Korean crypto lending firm Delio is currently under investigation by the country’s Financial Services Commission (FSC) as of June 30. decision to suspend user deposits and withdrawals on June 14.

During an extraordinary investor meeting on June 17, Jung Sang-ho explained that the company would resume withdrawals, albeit without a fixed schedule at the time. On June 27, the company began opening withdrawals for a portion of its staking services.

“[Delio] will get as much capital as possible to make up,” Sang-ho said. Delio is currently one of the largest cryptocurrency lenders in South Korea, with around $1 billion in Bitcoin (BTC), $200 million in Ether (ETH), and $8.1 billion in various altcoins. Its chief executive and management team have been barred from leaving the country pending an investigation by prosecutors.

On June 13, Delio’s sister company, Haru Invest, suspended withdrawals and deposits, citing an issue with a “consignment operator.” The move prompted Delio to do the same the next day, presumably due to the counterparty’s exposure. Since the announcement, Haru Invest has cut most of its staff. The company says that it is currently taking legal action against its service partner.

As a Registered Virtual Asset Provider (VASP), Delio is regulated by the country’s Financial Intelligence Unit. However, Haru Invest is not a VASP and therefore not under the jurisdiction of regulators. It was alleged that Delio’s management denied exposure to Haru Invest shortly before its decision to suspend withdrawals.

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Binance will help the South Korean city of Busan increase

cryptocurrency adoption and develop a blockchain ecosystem
Binance is helping the South Korean city of Busan “increase cryptocurrency adoption in and out of the city”. The global cryptocurrency exchange will also support the development of the city’s blockchain ecosystem and the Busan Digital Asset Exchange.

Binance Signs Memorandum of Understanding with the City of Busan

Cryptocurrency exchange Binance announced on Friday that it has signed a Memorandum of Understanding (MOU) with the metropolitan city of Busan. Busan, located at the southeastern tip of the Korean Peninsula, is the second largest city in South Korea, with approximately 3.4 million inhabitants.

“As part of the agreement, the City of Busan will receive technological and infrastructure support from Binance for the development of the city’s blockchain ecosystem and the promotion of the Busan Digital Asset Exchange,” Binance explained.

“Another form of cooperation between the two parties will be the sharing of the order book”, added the company, adding that it will establish a presence in Busan by the end of the year.

Binance CEO Changpeng Zhao (CZ) said, “We are happy to work with the City of Busan to bring about tangible blockchain-related developments that benefit and support the city’s innovation efforts.” The executive opined:

Through our industry-leading position and technology expertise, combined with the City of Busan's strong support of the blockchain industry, we hope to help increase cryptocurrency adoption in the city and beyond.

“We look forward to our close cooperation with the city to support the establishment of digital asset exchanges and various blockchain industries,” added Zhao.

Busan Mayor Heong-Joon Park commented:

With this agreement, we are one step closer to establishing the Busan Digital Asset Exchange as an integrated global platform for digital assets.

“By making Busan a specialist blockchain city that attracts global attention, we will fuel a new growth engine for the local economy and make it a global digital financial hub,” he added.