North Gyeongsang Province launches metaverse platform to become digital hub

In a historic move, Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Chairman of the Board of the Central Bank of the United Arab Emirates (UAE), executed the first cross-border payment for the UAE’s central bank digital currency (CBDC), the "Digital Dirham." Utilizing mBridgeAccording to local news source Gulf News, the transaction, valued at 50 million dirhams ($13.6 million), was conducted directly with China through mBridge. mBridge is a multi-CBDC platform which has been developed to support peer-to-peer cross-border payments in real time. The blockchain-based system was established by the Bank of International Settlements (BIS), in conjunction with the central banks of Hong Kong, Thailand, China and the UAE. The project has an additional 23 central banks and the IMF involved as observers. It’s thought that mBridge can play a vital role for nations to circumvent the use of the U.S. dollar for international trade purposes. Within each participant country, the project has onboarded multiple commercial banks.Photo by Karthik B K on UnsplashMarking CBUAE’s 50th anniversarySheikh Mansour carried out this groundbreaking payment during a celebration commemorating the 50th anniversary of the Central Bank of the UAE (CBUAE). The event also witnessed the graduation of the inaugural batch of 1,056 citizens from the "Ethraa" program, a high-level training initiative at the Emirates Institute of Finance aimed at fostering Emirati representation in the financial sector. The ceremony, held at the Abu Dhabi National Exhibition Center, showcased the significant progress and development the CBUAE has undergone over its 50-year history. The apex bank has played a pivotal role in strengthening financial and monetary stability, contributing to economic growth, and implementing innovative projects as part of the Financial Infrastructure Transformation Programme (FIT program) to accelerate digital transformation in the financial services sector. Sheikh Mansour emphasized the leadership's commitment to solidifying the UAE's position as a global financial center, praising the CBUAE's role in enhancing financial and monetary stability, ensuring efficiency in the financial system and supporting economic growth and development. He underscored the leadership's dedication to empowering UAE nationals to become fintech specialists, providing them with skills and knowledge to contribute to the nation's progress. The Vice-President also commended the efforts of all CBUAE employees, the Emirates Institute of Finance and the graduates of the Ethraa program, expressing his best wishes for their success in serving the nation. During the event, Sheikh Mansour was briefed on the services offered by the "Aani" instant payment platform, designed to facilitate fast, secure and convenient fund transfers. He also witnessed the launch of "Open Finance," allowing consumers to connect and share data across the entire financial ecosystem, and the visual identity of the Ombudsman Unit called "Sanadak," the first independent unit for settling banking and insurance disputes in the Middle East and North Africa (MENA) region. According to data from the Atlantic Council, 130 nations, accounting for 98% of global GDP, have made some efforts towards exploring the adoption of a CBDC. 11 countries have actually launched a CBDC and 19 of the G20 economies are at the advanced development stage. Meanwhile, a survey report published by the BIS last summer revealed an expectation among central banks that by 2030, we could see the launch of nine wholesale CBDCs and 15 retail CBDCs.  

Korean regulator monitors non-listed token amidst peer-to-peer trading surgeThe South Korean financial regulator is closely monitoring BTCMobick, a non-listed token issued by crypto influencer Oh Tae-min, who is known for authoring books like “The Great Bitcoin” and “Bitcoin and the Geopolitics of the Dollar.” The Financial Services Commission (FSC) is cautioning local crypto exchanges regarding the potential for price manipulation should the token be listed.Photo by Daniel Bernard on UnsplashBTCMobick TokenThe BTCMobick token is reportedly being traded peer-to-peer at around KRW 300,000, which is approximately equivalent to $230, in chat rooms of messaging apps like KakaoTalk outside of cryptocurrency exchanges. The token has gained enough traction to spur the emergence of dedicated apps that facilitate these peer-to-peer trades, charging fees for their services. Based on the size of the chat rooms and apps involved, it is estimated that approximately 3,000 participants are trading the token, according to a report by local news website Etoday.As per another coverage by the same outlet, the Virtual Asset Inspection Division of the Financial Intelligence Unit (FIU), which operates under the FSC, has inquired with local crypto exchanges on two occasions — once in September and again this week — about whether they have listed or are planning to list the BTCMobick token. It’s rare for the financial authority to specifically target a particular token when making inquiries with crypto trading platforms.Potential price manipulationAn FIU official explained the rationale behind the agency’s inquiry into crypto exchanges. The official stated that the probe aimed to caution the exchanges about potential price manipulation of the BTCMobick token. The concern is that many crypto users might suffer losses if such a token, which has been experiencing a continual rise in price outside of trading platforms, were to be listed. Currently, legal penalties for cryptocurrency price manipulation fall under the Virtual Asset User Protection Act, which will not be enforced until July 2024. This indicates a regulatory gap in the immediate term.Hwang Suk-jin, a professor at Dongguk University’s Graduate School of International Affairs and Information Security, pointed out that while giving out privately generated tokens to friends or acquaintances doesn’t raise any legal issues, the situation changes once these tokens are listed for trading on exchanges and distributed more broadly in the market. In such scenarios, these tokens can become a source of legal disputes, he explained.Amidst these developments, there are circulating rumors suggesting that BTCMobick is on the verge of being listed on exchanges. An industry insider has mentioned that there are brokers actively spreading these rumors, indicating that the token might soon become publicly tradable.Oh Tae-min’s denial of rumorsMeanwhile, Oh Tae-min, the creator of BTCMobick who has been distributing his token for free, states that the token is part of an experiment intended to mimic the early stages of Bitcoin. However, critics are concerned that the personally issued token has no practical utility. Addressing the circulating rumors about the token’s potential listing on exchanges, Oh asserts that these rumors are baseless and false. He further warns that any brokers spreading such rumors are likely engaging in fraudulent activities.

Hong Kong Adapts Crypto Regulations to Broaden Market AccessHong Kong’s financial regulator has taken a further regulatory step in its evolving stance on cryptocurrency trading, widening the scope of retail access to digital assets through intermediaries.Photo by Chapman Chow on UnsplashResponding to growing demandThe move follows a surge in interest in spot Bitcoin exchange-traded funds (ETFs) and recent investigations into the unlicensed operations of the JPEX exchange. In a circular published by the Securities and Futures Commission (SFC) on Friday, the regulator explained that the policy shift was prompted by changing market dynamics and growing inquiries from the industry.The new guidelines aim to extend access to a broader clientele and facilitate the direct deposit and withdrawal of virtual assets through intermediaries, all while maintaining stringent safeguards. The circular states:”The policy is updated in light of the latest market developments and enquiries from the industry seeking to further expand retail access through intermediaries and to allow investors to directly deposit and withdraw virtual assets to/from intermediaries with appropriate safeguards.”Cautionary notesDespite this welcome expansion, there are a couple of cautionary notes included within the circular. Hong Kong remains circumspect about overseas virtual asset (VA) products, deeming them “complex” and, as a result, riskier. The circular emphasizes that “VA-related products considered complex should only be offered to professional investors.” For instance, an overseas VA non-derivative ETF is likely to fall into this category.The other condition pertains to potential clients, who will be required to undergo a one-off test to assess their knowledge of investing and ensure they possess the financial wherewithal to manage the risks associated with virtual asset trading. Furthermore, intermediaries must furnish clients with comprehensive risk disclosure statements.The regulator also places an onus on the intermediary to set a limit for each retail client, to ensure that a retail client’s exposure to virtual assets is reasonable. The circular outlines that deposit and withdrawal of client funds should only happen through the use of segregated funding accounts on an SFC-licensed platform.Crypto sector aspirationsThis shift in regulation underscores Hong Kong’s ongoing aspirations to solidify its position as a hub for virtual assets. The territory embarked on a new regulatory regime in June, enabling applications for crypto trading platform licenses. By August, the first batch of licenses was granted, allowing exchanges to cater to retail customers. This marked a notable turnaround from Hong Kong’s prior 18 months of skepticism and hostility toward the cryptocurrency sector.The timing of these regulatory changes coincides with surging interest in spot Bitcoin ETFs, with JPMorgan even suggesting that approval in the US could materialize within months. This shift in regulatory perspective in Hong Kong also follows the investigation and accusations made against the JPEX exchange for conducting unlicensed operations, leading to arrests and the promise to disclose details of licensed applicants. The JPEX scandal has also dampened public confidence in crypto in Hong Kong more recently.Hong Kong is adapting its crypto regulations to be more inclusive while maintaining a cautious approach toward complex overseas virtual asset products. This regulatory shift underscores the region’s determination to foster its status as a leading hub for virtual assets, following a change of heart from its previous stance of skepticism and reluctance towards the crypto industry.