Paxos gets green light from Singapore regulator for USD stablecoin

Rather than restrict or ban crypto, the Iranian government appears to have taken on a more positive approach, moving towards embracing the new asset class and regulating it.Photo by Lara Jameson on PexelsRegulatory frameworkOn Dec. 7, Iran’s Nour News Agency reported Minister of Economic Affairs and Finance Abdolnaser Hemmati as saying that Iran is moving towards managing and eliminating the adverse effects of digital currency on the economy and instead harnessing its positive effects, with a regulatory framework being brought in to ensure that positive outcome. Hemmati went on to confirm that digital money falls under the oversight of Iran’s central bank. The minister stated that he hopes that cryptocurrencies would be developed with the objective of boosting youth employment levels and boosting economic assets held within the Islamic Republic of Iran, while helping to nullify sanctions and aligning Iran’s activities in this respect with the global economy. Circumventing sanctionsThe United States first imposed sanctions against Iran in 1979. The Islamic Republic had been the most sanctioned country in the world up until February 2022 when Russia surpassed Iran due to Western opposition to Russia’s special military operation in Ukraine. Sanctions were lifted in 2016 as part of a deal on the limiting of Iran’s nuclear program. That deal was scrapped during U.S. President-elect Donald Trump’s first term in office, with the latest sanctions imposed on entities involved in the transportation of Iranian oil last week. At a BRICS summit held in Kazan, Russia in October, Russia added cryptocurrency to the agenda with a view towards discussing with Iranian and other BRICS country representatives its potential use to bypass sanctions. In July the Bank of Russia set out a recommendation to Russian businesses to use crypto in order to reduce the impact of Western sanctions. Up to $50B in crypto held by IraniansA subsequent report from Nour News Agency on Dec. 8 had good news for Hemmati relative to his aspiration to boost economic assets held within Iran. The report cited Iranian economist Sadegh Alhosseini, who claims that crypto assets to the value of between $30 billion to $50 billion are controlled by Iranians.  The economist provided the estimate after Iranian finance ministry and Central Bank of Iran (CBI) officials outlined that they are looking to make the crypto market in Iran more transparent. If Alhosseini’s estimate is accurate, it would mean that Iranians hold crypto assets to the equivalent value of one-third of the entire gold market in Iran. Alhosseini outlined these findings within a report published by the CBI which provided a summary of proposed upcoming policies relative to cryptocurrencies. The main objective of these proposed policies is to aid crypto traders to remain compliant with anti-money laundering (AML) regulations and local taxation requirements. The CBI has also been working towards launching the digital rial, a central bank digital currency (CBDC). The CBDC project has been running since 2018 and relies upon Hyperledger Fabric, an enterprise blockchain framework that was originally developed by the Linux Foundation. Having been locked out of the SWIFT financial messaging network, Iran has launched ACUMER as an alternative which it hopes to use for trade purposes with Asian partners. Direct payments between Russian and Iranian banking systems have also been enabled. 

Indonesia to Launch Blockchain Trials to Enhance Public ServicesIn the wake of its recent government-backed cryptocurrency exchange launch, Indonesia is moving further forward to launch trials that employ blockchain technology within its public services sector.Photo by Bisma Mahendra on UnsplashBlockchain-based land ownership recordsAt the recent Blockchain Economy Summit held in Dubai, Tuhu Nugraha, the Principal of the Indonesia Applied Digital Economy and Regulatory Network (IADERN), told Cointelegraph that these trials will encompass the utilization of blockchain-based digital certificates for land ownership and certificates of competence within the education sector.The executive believes that blockchain’s inherent attributes, which include characteristics such as immutability and transparency, can be harnessed to combat certificate fraud. By anchoring these certificates in blockchain’s secure ledger, the government can efficiently verify the authenticity of various digital certificates, which is a significant leap forward in ensuring the integrity of critical documents.Nugraha is an advisor to the Indonesian government on blockchain and metaverse technologies. He emphasized the government’s collaborative approach to Web3 technology. Additionally, Nugraha revealed that the Indonesian government is working in close partnership with various blockchain-focused associations to conduct experiments and gather insights into the multifaceted implications of blockchain across diverse sectors. Instead of imposing rigid regulations, Nugraha maintains that the Indonesian government is committed to crafting regulations that spur innovation.Cointelegraph also spoke with Grace Sabandar, Co-Founder of the Indonesia Blockchain and Metaverse Center (IBMC). Sabandar, an advocate of blockchain’s potential, emphasized the pivotal role of Indonesia’s youthful demographic on the basis that this dynamic demographic is inherently adaptable to new technology.Youthful demographic to capitalize on Web3Sabandar made the point that this younger Indonesian demographic has already demonstrated itself to be one of the world’s largest user bases for Web2 social media platforms such as Facebook and Instagram. On that basis, she believes Indonesia is poised to lead in the adoption of Web3 technology. She remarked:“We want to be the leader, not only the user of technology, because now, because of decentralization, anybody can do something, anybody can create something.”Furthermore, Sabandar highlighted the crucial educational role played by the IBMC in collaboration with the government, private sector stakeholders, media, and academia. Their mission revolves around enlightening the nation about the manifold benefits of blockchain, emphasizing transparency, the utility of smart contracts in business operations, the essence of decentralization, and other fundamental aspects.Realizing blockchain and Web3 potentialEarlier this week, a report published by South Korean crypto data platform Xangle in conjunction with Web3 consulting firm Tiger Research concluded that Indonesia has significant potential to grow its Web3 sector.Reports in recent days have also demonstrated further instances of the use of blockchain technology in the country, with state-owned ID Food collaborating with Singapore’s D3 Labs to establish a blockchain-based fish trading process. In July, South Korean tech company Milk Partners launched its blockchain-based reward points service in Indonesia.Indonesia’s blockchain development and adoption are being spurred on by the enthusiasm of its tech-savvy youth, collaborative partnerships, and a government dedicated to innovation and transparency. As it paves the way in the Web3 era, Indonesia seeks to leverage blockchain technology to benefit public services, foster trust, and lead by example in the global digital revolution.

BOCI Partners with UBS in Hong Kong on First Tokenized NotesIn a groundbreaking move, the investment arm of the Bank of China (BOCI), has partnered with Switzerland-headquartered global financial services company UBS, to issue tokenized notes in Hong Kong.Photo by Eric Prouzet on UnsplashHong Kong’s first tokenized notesThis marks the first instance of a Chinese financial institution issuing a tokenized note in the region. Leveraging the power of blockchain technology, the notes were tokenized on the Ethereum blockchain. UBS announced the milestone development via a press release published to its website on Friday.The Swiss banking giant has some expertise in this area, having first issued a tokenized fixed rate note in December 2022, recorded on a permissioned blockchain and established under English and Swiss law. On this occasion, the Hong Kong-issued tokenized notes will be compliant in terms of both Swiss and Hong Kong law.The issuance of these tokenized notes involved a significant amount, with BOCI issuing 200 million Chinese yuan worth of notes, equivalent to approximately $28 million. The collaboration with UBS aims to simplify digital asset markets and products for customers in the Asia Pacific region, specifically by developing blockchain-based digital structured products tailored to their needs.Ying Wang, Deputy CEO at BOCI, expressed enthusiasm for the digital transformation and innovative development of Hong Kong’s financial industry, recognizing the evolving digital economy in the region. Wang expressed the view that the development puts BOCI “at the forefront of innovation in technology finance and digital finance.”She sees the UBS collaboration as a means of driving “the simplification of digital asset markets and products, for customers in Asia Pacific through the development of blockchain-based digital structured products, designed specifically for customers in Asia Pacific.”Embracing digital assetsHong Kong has been actively working towards establishing itself as a hub for cryptocurrencies. Paul Chan Mo-po, the Chinese autonomous territory’s Financial Secretary, has emphasized the region’s intention to embrace regulation in this domain. Despite recent fluctuations in the virtual asset market and the closure of certain virtual asset exchanges, Chan remains optimistic about the prospects of Web3 and believes it is the opportune moment to drive its advancement.This month, Hong Kong lifted its ban on crypto retail trading and encouraged crypto exchanges to seek licenses within the region. The Securities and Futures Commission (SFC) has introduced exchange guidelines, leading firms such as Huobi, OKX, and BitMEX to express their intentions to apply for licenses in Hong Kong. Furthermore, in light of the recent lawsuit filed by the SEC against Coinbase, Hong Kong legislator Johnny Ng extended an invitation to the exchange to establish a hub in Hong Kong.The collaboration between BOCI and UBS is significant as unlike UBS’ previous tokenized note project which was established on a permissioned blockchain, this Hong Kong-based project is making use of Ethereum. By issuing tokenized notes on the Ethereum blockchain, these institutions are exploring the decentralized potential of digital assets and paving the way for further innovation in the Asia Pacific region.