Cartesi Launches Inaugural dApp on Ethereum Mainnet

The Abu Dhabi Agriculture and Food Safety Authority has announced a ban on cryptocurrency mining on farms, addressing concerns over the misuse of agricultural land.Photo by Kamil Rogalinski on UnsplashClaims of farm misuseAccording to the Khaleej Times, the Authority has informed UAE farmers that their lands are not to be used for Bitcoin and crypto mining. This activity is deemed a “misuse of the farm for purposes other than its intended use.” The new regulation aims to preserve the primary agricultural function of these lands and imposes penalties of up to 10,000 United Arab Emirates Dirhams (approximately $2,722) for violations. Cryptocurrency mining requires significant computational power and electricity, which conflicts with the farms’ intended agricultural use.  Broader support for miningDespite this specific restriction, the United Arab Emirates (UAE) maintains a supportive stance towards cryptocurrency and cryptocurrency mining beyond a farm setting. In 2023, the country emerged as a notable player in the global Bitcoin mining industry, with a combined mining capacity of around 400 megawatts, contributing approximately 4% of the global Bitcoin hash rate. It’s proven to be a popular place in which to locate a mining facility as the country has a robust infrastructure. Stable power is essential in order for miners to be able to run their machines in a sustainable manner. Additionally, the government has generally been supportive of the activity, fostering a conducive environment for both crypto and Bitcoin mining and blockchain technology more generally. Furthermore, the country occupies a strategic location at the crossroads of major trade routes. Regulatory clarity has also been provided by the authorities in the UAE with regard to how crypto mining activity is to be carried out. While this latest move against mining within a farm setting is a restriction, it still feeds into that overall framework of regulatory clarity and certainty. Attracting mining firmsGiven the aforementioned reasons in support of mining in the UAE, the Middle Eastern country continues to attract cryptocurrency mining firms.  In December of last year, a Dubai-headquartered Bitcoin mining company, Phoenix Group, struck a $380 million deal with Chinese mining equipment manufacturer MicroBT. That same month, the company was listed on the Abu Dhabi Securities Exchange (ADX). In May 2023, Abu Dhabi-based digital assets development company Zero Two entered into a partnership with North American crypto miner Marathon Digital with a view towards developing the region’s first large-scale crypto mining facility. Beyond mining, the location is also proving popular for crypto firms more generally. In May 2023, Chainalysis, a leading blockchain analytics company, established its regional headquarters in Dubai. Similarly, Blockdaemon, a provider of institutional infrastructure, expanded its operations in Abu Dhabi, facilitated by the Abu Dhabi Global Market (ADGM), a key financial regulator. Speaking at the Dubai FinTech Summit recently, Reece Merrick, Managing Director of enterprise blockchain company Ripple for the Middle East and North Africa (MENA) region, said that “the UAE has done a remarkable job in really putting itself in a position to be the global crypto hub.”

Ant Group, a Chinese financial services conglomerate and affiliate of the Alibaba Group, has plans to acquire stablecoin licenses across Asian markets and further afield. Its Singapore-headquartered global digital payments and financial technology subsidiary, Ant International, plans to file an application for a stablecoin license in Singapore and in Hong Kong once the Chinese autonomous territory implements its stablecoin regulation later this summer.  That’s according to a report published by Bloomberg on June 12, citing unnamed sources familiar with the matter. Beyond the Asia-Pacific (APAC) region, Ant International also plans to seek a stablecoin license in Luxembourg.Photo by Ban Daisy on Unsplash2 Hong Kong stablecoin license applicationsIn a statement, Ant International stated: “We plan to apply for the fiat-referenced stablecoins (FRS) issuer's license once the process is open after the [Hong Kong] Stablecoins Ordinance takes effect on August 1.”Additionally, Bian Zhuoqun, president of Ant Digital Technologies, another Ant Group subsidiary focused on applying digital technologies, confirmed that it too will be applying for stablecoin licensing in Hong Kong.  Zhuoqun told reporters that the company has already opened dialogue with the regulator in Hong Kong, while also participating in a regulatory sandbox. While the company wasn’t a named participant within Hong Kong’s stablecoin sandbox, it had previously participated in Project Ensemble, an initiative run by the Hong Kong Monetary Authority (HKMA) aimed at establishing a tokenization ecosystem in the city. Exploring stablecoin applicationsOn June 10, Ant International and German multinational investment bank Deutsche Bank announced a strategic partnership geared towards establishing integrated cross-border payment solutions to global merchants.  The two firms stated that they would explore tokenized bank deposits while also looking into stablecoin applications for global payments. It highlighted the potential use of stablecoins within Ant companies, facilitating real-time cross-border treasury management, reserve management and on-ramp and off-ramp services. Back in November, Singapore-headquartered StraitsX, a stablecoin-based payments startup, launched a cross-border payments product in association with AliPay+, Ali International’s offshore digital payments platform. A key component of the product offering is the use of the XSGD stablecoin. Hong Kong passed its stablecoin bill last month. Last week, the city’s government outlined that the effective date for the resultant Stablecoin Ordinance has been set for Aug. 1. Under the Ordinance, only licensed institutions are authorized to offer fiat-referenced stablecoins in Hong Kong, while the issuer of such a stablecoin must be licensed in order for it to be offered to a retail investor. Last month, multinational banking and financial services group HSBC launched Hong Kong’s first blockchain-based settlement service, utilizing tokenized deposits for swift transactions. The company collaborated with Ant International, which became the first client of the service. Entering the financial mainstreamA Financial Times report published on June 12 asserted that stablecoins are entering the financial mainstream, a development that “could have profound implications for the global financial system.” Earlier this week, the South China Morning Post (SCMP) reported that Hong Kong’s stablecoin law could lead to a boom in digital assets.Daniel Tse, managing director of Hong Kong brokerage firm Futu Securities, told the SCMP: “We’re seeing a significant trend in investments related to stablecoins on our platform, which highlights the growing importance of this sector.” 

The Financial Supervisory Commission (FSC) of Taiwan has disclosed its intention to introduce a fresh draft of digital asset regulations for the nation come September 2024. The forthcoming draft bill seeks to establish more robust regulations for digital asset markets, prioritizing investor safety, as announced by Huang Tien-mu, the chairman of FSC. That’s according to a March 4 report by local media outlet, United Daily News (UDN).Photo by Kelly Sikkema on UnsplashAddressing customer protectionIn October, Taiwanese legislators introduced the Virtual Asset Management Bill to parliament, a move aimed at fortifying customer protection and ensuring effective industry supervision. The bill encompasses provisions that could impose fines ranging from two million Taiwanese dollars ($63,000) to 20 million Taiwanese dollars on unlicensed virtual asset service providers (VASPs). Around that time, the authorities had a particular concern with regard to the operation of foreign and offshore VASPs within the Taiwanese market. Like Hong Kong, Taiwan also had seen some negative impact due to the fraudulent activity of the Dubai-based JPEX crypto platform.The FSC has already barred foreign VASPs from operating in Taiwan without requisite approvals from the regulator. These measures were instituted following the establishment of a self-regulatory association by major cryptocurrency exchanges in the country, aiming to foster collaboration with regulators. Stricter regulationsPer the latest report, Chairman Huang Tien-mu outlined the FSC's plan to propose a draft bill targeting virtual currencies in September of the current year. This initiative seeks to bolster investor safeguarding and enhance regulatory oversight over the virtual currency sector. Concern has also been raised relative to native exchanges, in addition to offshore VASPs. In November, an investigation was opened into the Bitgin exchange, amid alleged money laundering activity. Shortly afterwards, another probe was launched into the ACE Exchange, amid allegations of money laundering and fraud. Highlighting the imperative for stricter regulations, Huang underscored the potential fraud risks tied to digital currencies. He issued a stern warning, signaling severe administrative penalties for merchants engaged in fraudulent activities aimed at investors. Moreover, the regulator expressed concerns about the growing interconnection between digital assets and the conventional financial system. He emphasized the need for laws to shield the stability of traditional financial systems from the inherent risks posed by digital assets. Addressing apprehensions regarding the misuse of virtual currencies for fraudulent endeavors, Huang cautioned of stringent administrative penalties awaiting both domestic and foreign currency traders found guilty. ETF considerationsTaiwan's Chamber of Commerce is poised to unveil a study on Bitcoin exchange-traded funds (ETFs) in April. Gao Jingping, Deputy Director of the Securities and Futures Bureau at the Financial Supervisory Commission, indicated Taiwan's contemplation of endorsing spot Bitcoin ETFs under regulatory oversight. However, he advised against investing in foreign crypto-based exchange-traded products. Reports from local media in December suggested that the FSC will closely monitor Bitcoin ETFs to assess their potential and gauge public demand. The FSC intends to release research findings in April, which will influence the fate of Bitcoin ETFs in Taiwan. Positive findings may pave the way for Taiwanese investors to resume acquiring overseas Bitcoin ETFs. This initiative unfolds amid heightened global demand for Bitcoin ETFs, which recently contributed to Bitcoin's surge to almost $69,000.