The HIBS Team’s AMA Recap: Ep.1
What’s the recent update about HIBS Team?
As announced in our roadmap on Xangle, we are currently doing a closed beta test of Challenge Run, an AR-based Move to Earn (M2E) project. The project applies the concept of location-based service, which some of you may associate with Stepn. However, some points that set us apart are the ‘gamefi’ element and other supporting technologies like AR. In addition, we are conducting a closed beta of the ‘PFS’ Media Platform Budget Management system. You can read more about it on our official Medium.
Question 1: What are you planning for the ‘Challenge Run?’
When starting the project planning, one of the HIBS Team’s priorities is to set the business model. It’s safe to say that the concept of Challenge Run is closer to Pokemon Go, rather than the Move to Earn (M2E) projects like STEPN and SNKRZ. In the first half of 2022, M2E led the virtual asset industry, and many M2E projects apply the mechanisms where users who personally exercise and mine tokens based on their average speed. However, it is not easy for an individual to exercise, and have an economic effect. The pedometer app, for instance, does not give a significant reward either.
The HIBS Team concluded the first beta test last month in several significant locations such as Dosan Park and Apgujeong Rodeo. We can increase the retail store foot traffic by creating mining events, contributing to the economic effect. We also plan to propose more business models, including incorporating Google Ad. We will share the progress in more detail through upcoming upgrades and tests.
Question 2: What are the long-term and short-term goals of the HIBS Team?
Our short-term goal is to conduct projects under the institutional framework transparently. We understand that some people have been affected by the ups and downs in the industry since last year, primarily due to the regulations in South Korean exchanges. Nonetheless, we would like to think of the changing regulations as the Korean government’s effort to adapt to the global standard of the virtual asset policy, which should help minimize the impact on investors generally.
Decentralization is the core of blockchain, which is also the essence of DeFi, DAO, M2E, NFT, and other assets that gives reward while trading. While it could be challenging to establish that can satisfy everyone at once, projects should be able to respond flexibly to the changing regulations, and investors need to invest carefully considering these variables.
To comply with the changing global and domestic regulations and rules for different exchange platforms, the HIBS Team has three certified Anti-Money Laundering experts and two disclosure experts. Further, we have established guidelines related to the internal control of virtual assets, including the information security and control guideline. We are continuously working to ensure stable operation while complying with the regulations.
Creating a sustainable model has always been an ongoing issue in the blockchain and virtual asset industry. Our long-term goal is to be a well-established project with a stellar business model. We recommend you read the article ‘Sustainable business model for the price and value of coins,’ written by Xangle, a platform specializing in industry disclosure. Naturally, this is, after all, still an opinion, and it could be controversial. No model has a proven sustainable business model in the virtual asset industry, but there are several models with potential. The HIBS Team aims to be one of the projects with a sustainable business model and has constantly upgraded various in-app features on HABL, such as NFT marketplace, Challenge Run, and e-commerce.
Question 3: Virtual Asset Service Provider license
Finally, the virtual asset service provider is our community’s most frequently asked question. HABL, one of our main projects currently, is a global application used by users in more than 95 countries. That includes providing our native in-app wallet services to Korean users, requiring us to acquire a virtual asset service provider license. By evaluating the variables, we are considering using a decentralized wallet like Metamask, Kaikas, Descent, and others, as our next best solution. Regardless, we still plan to adjust accordingly to the market situation.
Article 2 of the Special Act on the Reporting and Use of Specific Financial Transaction Information defines a virtual asset business as a party that conducts business such as selling, buying, exchanging, transferring, storing, managing, brokering, and mediating virtual assets. The Korea Financial Information Analysis Institute and the Financial Supervisory Service govern the virtual asset business reports. The agency supervises and determines suspicious transaction information reported to financial companies and provides relevant information to law enforcement agencies. The institution mainly works closely with the FATF, an international financial organization that supervises anti-money laundering and anti-terrorism financing issues.
Crypto traders should be familiar with the customer verification process called KYC, one of the rules under the International Anti-Money Laundering Organization and applied in the financial sector, including the banks. The same rule has been applied to virtual asset exchanges in recent years. In short, a virtual asset business must establish rules and procedures for anti-money laundering and anti-terrorism financing.
It is challenging for most virtual asset operators, including startups, to prepare for the new regulations. For example, the first special payment law could be complicated because it was created focusing on exchanges rather than projects like DApps. However, HIBS Team is prepared accordingly to the everchanging market and regulations. As a reference, there may be differences between the virtual asset operators in Korea and Singapore. However, it is generally in the same context because the laws follow the FATF recommendations. In other words, getting the virtual asset provider license is akin to a step closer to the global standards, which can be a huge stepping stone for the HIBS Team.
We are also preparing for the ISMS certification by the Korea Internet & Security Agency as a requirement for virtual asset business applications.
With this, we conclude the first AMA session and will see you on the next one soon.