HKEX Launches Blockchain-Based Settlement Platform

Japan’s Financial Services Agency (FSA) has moved recently to address concerns related to peer-to-peer (P2P) transactions while in a separate development, the country’s GameFi community is calling for regulatory change to enable greater liquidity. The two distinct developments both relate to getting the balance right in terms of crypto regulation from the perspectives of regulators and lawmakers and crypto sector entrepreneurs and participants.Photo by Manuel Cosentino on UnsplashAddressing concernsIt emerged last week that the FSA had proposed a number of measures to safeguard users against “unlawful transactions,” causing alarm that any such moves would inhibit the P2P transactions market. Responding to a query from Cointelegraph, the FSA elaborated that its recommendation does not encompass "transactions from one individual to another." Instead, it aims to bolster measures against illicit money transfers, particularly instances where an individual deposits cash from their bank account into an account belonging to a crypto asset exchange service provider. The regulator clarified that under the new recommendations, banks would intercept suspicious transactions where the sender seeks to alter their name for the purpose of depositing funds into the crypto platform. The FSA outlined that this situation arises where a fraudster convinces an innocent exchange user to effect the name change, so that exchange rules can be circumvented and the fraudster can receive funds from the scam victim. According to the FSA, numerous financial institutions have already implemented these measures, although the agency has not received any reports of specific cases raising concerns regarding crypto asset markets. Notably, the FSA emphasizes that its recommendations are not universally mandated for all financial institutions, with banks expected to devise and implement measures tailored to their specific circumstances. Solving crypto market liquidity issuesWith that clarification, it appears that the measures won’t have the negative impact on P2P crypto markets as many market participants originally feared. Meanwhile, in a distinct development, Japan's blockchain gaming community has approached the Liberal Democratic Party (LDP) to seek assistance in bolstering liquidity within Japan's crypto asset market. Taking to the X social media platform on Wednesday, Ryo Matsubara, director of Oasys, a GameFi blockchain, outlined that he had visited the LDP's digital society promotion headquarters on behalf of Japanese blockchain gaming projects to raise concerns about stringent regulations impeding liquidity in Japan, which directly impedes the growth of the GameFi ecosystem. Matsubara advocates for regulations that incentivize safe cryptocurrency investment, positing that increased liquidity, marked by a surge in buyers and sellers, could result from such measures. Oasys intends to continue collaborating with the government to enhance Japan's global competitiveness in the Web3 market, with Matsubara expressing confidence in Japan's potential to reclaim its illustrious gaming legacy on Web3. While Japan initially harbored skepticism toward crypto adoption, its stance has softened in recent times. Matsubara acknowledged the positive impact of a recent crypto-related tax reform which was enacted in December. In September 2023, the Japanese government commenced planning to permit startups to raise public funds through crypto asset issuance. That bill was approved last week and now goes forward to the Japanese parliament for further deliberation. These recent developments demonstrate that Japan is navigating regulatory complexities as it seeks to balance innovation with consumer protection in the burgeoning crypto space.

As part of the celebration of Holi, the Hindu festival of colors, the Indian Railway Catering and Tourism Corporation (IRCTC) is unveiling a series of colorful NFT tickets for the Lucknow to Delhi train service. Governed by the Ministry of Railways, IRCTC is a central public sector enterprise in India. Taking to the X social media platform on March 13, the railway company offered a sneak peek into these NFTs, showcasing sketches of iconic landmarks from both Delhi and Lucknow against vividly shaded backgrounds.Photo by Johannes Plenio on UnsplashLimited-time ticketing offeringCommencing March 20, passengers booking tickets for Tejas trains numbered 82501 and 82502 will have the opportunity to access these exclusive NFTs, with the initiative set to conclude on April 2. In its social media post, the IRCTC outlined the additional perks accompanying these NFT tickets, stating:"These tickets are not merely digital souvenirs. ... They symbolize our dedication to enriching your journey experiences, allowing you to personalize your travel memories with your own photographs and enjoy exclusive offers from handpicked brands." As of now, the IRCTC has not officially confirmed whether these NFT tickets will be complimentary with ticket purchases or if passengers will need to make additional payments to acquire these digital collectibles. Polygon and HyperledgerNFTs, or non-fungible tokens, are digital assets built on blockchain networks. Earlier this year, the IRCTC collaborated with NFTtrace, a service offered by Bangalore-based blockchain development firm ChainCode Consulting, to offer NFT tickets for journeys to the Hindu sacred city of Ayodhya. The tickets were presented as more than mere travel documents but as cherished mementos of divine experiences. The NFTtrace website stated:"More than just a ticket to Ayodhya Dham - a souvenir of the divine Shree Ramotsav. Treasure the pious memories of Lord Shree Rama's arrival forever, with Blockchain NFT.”On that occasion, the NFT certificates were minted on the Polygon blockchain. Indian Railways has been exploring blockchain technology for some time now. Last March, the National Academy of Indian Railways partnered with Polygon to conduct a workshop aimed at raising awareness about the benefits of blockchain in railway industries. Polygon outlined that the integration of blockchain within the Indian railway system was the beginning of a new era that moves the technology towards mass adoption.In this latest instance, the NFTtrace platform is involved once again. However, this time around, the NFTs will be minted on the Hyperledger blockchain. Ava Labs, the developer of the Avalanche layer one blockchain, has expressed its interest in developing ticketing-related blockchain applications in India. Last October the firm highlighted blockchain-based ticketing as one of a number of areas it wanted to concentrate on in an expansion within India. Conventional firms in the travel industry have been experimenting with the technology on an ongoing basis in recent times. In 2023 Japan’s largest airline All Nipon Airways (ANA) launched its own NFT marketplace. Argentinian budget airline Flybondi took the decision to offer NFT-based tickets in 2023 in a partnership with NFT ticketing firm TravelX.

In the first quarter of this year, South Korea witnessed a significant surge in cryptocurrency trading volume, with transactions worth $456 billion conducted in South Korean won on centralized crypto exchanges, according to data from Kaiko. This surge has propelled the South Korean won to the forefront as the most-used currency for crypto trading, surpassing the U.S. dollar during the same period. Photo by Sesinando on PexelsCrypto over stock marketThe country, amidst this soaring demand for cryptocurrencies, is preparing to implement regulations aimed at safeguarding investors. South Korea's cryptocurrency market, renowned for its activity, briefly outpaced the country's stock market during the recent crypto bull run in March.  The local market is predominantly dominated by five fully licensed exchanges, with Upbit leading the pack, accounting for over 80% of the market share on most days, as highlighted by Kaiko. Other major global exchanges like Crypto.com and Binance are also eyeing entry into the South Korean market, with Crypto.com launching its retail trading platform in the country on April 29 and Binance acquiring a significant stake in Gopax in 2023. Growing regulatory frameworkDespite regulatory efforts to fortify investor protection, including the enactment of the Virtual Asset User Protection Act in July 2023, South Korea continues to work on further regulatory frameworks. The legislation aims to curb illicit activities in the crypto market and mandates safeguards for user funds, including storing over 80% of deposits in cold storage and enrollment in insurance programs to mitigate potential security breaches. Additionally, efforts are underway to standardize crypto token issuance and enhance information disclosure for investors through the development of a second part of the User Protection Act.