Japan’s ODX to commence digital securities trading in December

CME Group Expands Crypto Reference Rates to Asian MarketsUS derivatives marketplace CME Group is making strides in its efforts to cater to the Asian cryptocurrency market. In collaboration with crypto indices provider CF Benchmarks, the company is set to launch new reference rates for Bitcoin (BTC) and Ether (ETH) aimed specifically at the Asia Pacific (APAC) region.Photo by Pierre Borthiry — Peiobty on UnsplashGoing live next monthThat’s according to a press release published by the company on Wednesday. These new rates, the CME CF Bitcoin Reference Rate APAC and CME CF Ether-Dollar Reference Rate APAC, are scheduled to become available on September 11, according to a joint announcement.This move comes in response to the growing demand from Asian investors and institutions for accurate pricing data during their local trading hours. Currently, a substantial portion of CME Group’s crypto volume, about 37%, occurs outside of US trading hours, with approximately 11% of trades originating from the APAC region. The new reference rates will be published daily at 4 p.m. Hong Kong time, allowing APAC-based participants to align their crypto price risk management more closely with their portfolio strategies.Building upon past effortsCME Group’s efforts to provide accurate and timely reference rates have been ongoing. The company initially introduced its Bitcoin Reference Rate (BRR) in 2016, followed by the Ether Reference Rate in 2018. The BRR calculates the US dollar price of one Bitcoin as of 4 p.m. London time. It leverages the trade flow data from major Bitcoin spot exchanges within a one-hour window to provide an average of volume-weighted medians across 12 five-minute intervals during that period.Notably, the newly announced Asia-focused reference rates will provide a variant to the existing rates tailored for London and New York. Giovanni Vicioso, CME Group’s Global Head of Cryptocurrency Products, emphasized that these APAC reference rates will facilitate more precise risk management for institutional clients utilizing Bitcoin and Ether futures products in their active portfolios or structured products like ETFs.Focusing on AsiaCME Group’s expansion into the APAC region aligns with a broader trend of institutional interest in cryptocurrencies in Asia. The region has seen regulatory developments aimed at providing clarity to crypto businesses over the course of the past twelve months while a lack of regulatory clarity currently prevails in the United States. This move also coincides with the company’s push to further engage with the global crypto derivatives market, which accounts for around 75% of the overall crypto trading volume.CME’s decision to launch Asia-focused reference rates is a strategic move to tap into the growing interest in cryptocurrencies from the Asia Pacific region. By offering accurate pricing information during APAC trading hours, the company aims to provide institutions and investors with better tools to manage their cryptocurrency price risks effectively. From the perspective of crypto market participants more broadly, the move is encouraging given that it comes from the world leader in derivatives markets.

Korea's Democratic Party of Korea (DPK) plans to re-request the Financial Services Commission (FSC) for an authoritative interpretation of spot Bitcoin ETFs in June, seeking the legal interpretation of such products, according to The Korea Economic Daily.  The FSC currently does not classify virtual assets as financial investment products, as they do not function as underlying assets for ETFs as stipulated by the Capital Market Act. Thus, the issuance and listing of spot cryptocurrency ETFs have not been permitted in the country, limiting trading opportunities for Korean investors. Photo by Pixabay on PexelsDespite the situation, interest around the spot Bitcoin ETFs has surged in South Korea following the approval of such ETFs in the United States and recently in Hong Kong. This heightened expectation of spot Bitcoin ETF approval has coincided with the 22nd general election held on April 10.  DPK’s attempts to keep its promise The DPK’s decision to seek clarification on spot Bitcoin ETFs from the financial regulator comes after the party’s landslide win at the general election, securing a total of 175 seats out of 300 in the National Assembly. Among the party’s key pledges were to allow the trade of spot BTC ETFs and ease regulations on crypto products.  In the run-up to the election, the DPK and the ruling People Power Party (PPP) vied for introducing pro-crypto pledges to win votes from young Koreans in their 20s and 30s, who make up a significant portion of crypto investors within the country.  Bold move to amend Capital Market ActThe spokesperson of the DPK said the party will first seek an authoritative interpretation regarding spot Bitcoin ETFs from the FSC and continue to closely monitor how the situation unfolds. The prevailing view from experts, however, is that the agency is likely to remain sturdy in its view.  If the FSC insists on its current stance on spot BTC ETFs, the party would go as far as to amend the Capital Market Act, the spokesperson said, which would take at least a number of months to follow all due processes. 

Laos to Prioritize Blockchain for Digital TransformationThe Laotian government, under the leadership of Prime Minister Sonexay Siphandone, recently hosted the inaugural Ministerial Conference on Blockchain 4.0 Digital Transformation in Vientiane, the country’s capital. The conference, held on Friday, brought together blockchain experts and leaders from various economic departments in the country, indicating the government’s prioritization of blockchain technology for its digital transformation efforts.Photo by Molydar SOUAMA on UnsplashMetaBank cooperation agreementIn an effort to promote digital transformation within Laos, the Laotian government has signed a cooperation agreement with Singapore’s MetaBank. Software company MetaBank describes itself as a “digital civilization accelerator empowered by blockchain.”A report from MetaBank sheds light on the main focus of the conference. The key objective was to expedite Laos’ digital transformation by harnessing the potential of digital technology. The concept of Blockchain 4.0 was introduced, highlighting the importance of open collaboration and positioning Laos as both a catalyst and a beneficiary of the emerging global digital landscape.In a press release published on Monday, MetaBank Founder and Chairman Frank Sui said that blockchain technology can help developing countries like Laos to “overtake on a bend.” Laotian Minister of Technology, Boveingkham Vongdara, suggested that blockchain technology is needed to transform production and service methods.In line with this vision, MetaBank and the Laotian Ministry of Technology plan to establish a blockchain research and development center that will support the Blockchain 4.0 initiative in Laos. This center will serve as a hub for innovative blockchain projects and contribute to the country’s technological advancements.Leveraging digital technologyThe conference outlined several goals for the development of Laos’ digital economy. These goals include leveraging digital technology to generate new fiscal revenue, strengthen foreign exchange reserves, control inflation, foster sustainable economic growth, improve living standards, and enhance international competitiveness in the short term.Furthermore, the event proposed the establishment of a Blockchain Technology Transformation Committee, which would be responsible for ensuring legal compliance and drafting legislation relevant to the digital economy.During the conference, Prime Minister Siphandone stressed the importance of integrating blockchain technology into various government processes and utilizing it extensively for administrative management and public services. He emphasized that embracing blockchain technology is vital for the successful implementation of Laos’ ninth five-year plan, which aims to drive national, economic, and social development.Laos, situated in Southeast Asia, has recently taken significant strides in adopting blockchain and digital technology. In February, the country’s central bank signed a memorandum of understanding with Japanese financial software firm Soramitsu to launch a proof-of-concept project for a central bank digital currency (CBDC).The project involves the creation of a digital currency called DLak, which will be exchanged with commercial banks for fiat currency and used for real-time transactions through a QR code and an accompanying app. This initiative aims to address the delays previously experienced in digital transactions within Laos, which could take up to a month to clear.With the establishment of this Blockchain 4.0 initiative and the planned research and development center, Laos is positioning itself to make further progress in its digital transformation journey.