Blockchain Experts Gather at KBW 2023 Side Event to Discuss Future Prospects of South Korea

Emerging as one of the world’s major crypto hubs, the United Arab Emirates (UAE) is set to host Abu Dhabi Finance Week, described as the region’s largest financial and investment event, in the capital next month. Scheduled to take place from Dec. 8 to 11, the conference will feature leading figures from both traditional finance and the crypto industry. Notable speakers from traditional finance include Bridgewater founder Ray Dalio, Morgan Stanley International CEO Clare Woodman, and Franklin Templeton CEO Jennifer Johnson. Representing the crypto sector will be Binance CEO Richard Teng, Solana Labs CEO Anatoly Yakovenko, Circle CEO Jeremy Allaire, among others.Photo by Saj Shafique on UnsplashHashed, ADGM host Web3 policy talksAmong the partners for the four-day event is Seoul-based venture capital firm Hashed, which opened its Abu Dhabi office last year. The expansion followed its partnership with Hub71, the city’s global tech ecosystem, which aims to help more Korean startups expand into the Emirates. According to South Korean news outlet News1, Hashed, jointly with Abu Dhabi Global Market (ADGM) Emerging Tech, will host the Web3 Leaders Roundtable. The event will feature two sessions: one exploring next-generation digital infrastructure, where artificial intelligence and blockchain converge with the real economy, and another focusing on digital asset regulations, particularly how policies can be designed to balance innovation with oversight. Bybit courts UAE talentAbu Dhabi’s growing appeal as a hub for digital asset businesses is also underscored by crypto exchange Bybit’s recent participation in the annual NYU Abu Dhabi Career Fair. Concluding on Oct. 30, the event marked the trading platform’s first talent outreach initiative in the UAE. The participation comes after Bybit obtained a full virtual asset platform operator license from the Securities and Commodities Authority (SCA) last month. The occasion gave Bybit an opportunity to engage with students and recent graduates. The growing adoption of cryptocurrency in the country is reflected in Du’s launch of a crypto mining service aimed at individual users. As one of the UAE’s two major telecom operators, Du is leveraging its nationwide data centers to allow residents to rent the necessary computing power on a subscription basis to mine digital assets, according to a report by the Emirates-based newspaper The National. Du’s cloud platform powers user miningJasim Al Awadi, Du’s chief information and communications technology officer, said the new service is powered by Cloud Miner, a platform introduced last year under the company’s sub-brand Du Tech. He explained that as the service evolves, users will gain access to a calculator that estimates their potential monthly Bitcoin earnings. Du also intends to continue enhancing and expanding its mining-as-a-service offering. The launch coincides with a period of volatility in the crypto market. On Nov. 5, Bitcoin fell below the $100,000 mark for the first time since June 23, dropping to $99,992.01 against USDT on Binance before recovering to above $103,000. 

India’s digital currency transactions have surged, surpassing 1 million daily transactions in December, meeting the Reserve Bank of India’s (RBI) ambitious target set for the end of 2023.Photo by Julian Yu on UnsplashCBDC-based employee paymentsReuters cited three sources familiar with the matter who have revealed that Indian banks played a crucial role in achieving this milestone by disbursing certain employee benefits through the central bank’s digital currency (CBDC), known as the e-rupee. As Indian crypto influencer and YouTuber Sumit Kapoor put it, the transaction level increase “happened because people working in regular banks were encouraged to use digital rupees instead of the normal money for their deposits and benefits.” RPI letter confirms increaseA letter seen by CoinDesk sent by the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, to RBI staff on Dec. 29 confirmed the increased CBDC use, stating that it “exceeded the milestone of 1 million transactions in a day on Dec. 27, 2023.” The e-rupee, developed as a digital counterpart to physical cash, utilizes distributed ledger technology. The RBI initiated the e-rupee pilot in December 2022, initially recording an average of 25,000 daily transactions by the end of October. Despite its integration with the Unified Payments Interface (UPI), a popular framework for mobile app-based peer-to-peer money transfers, the transaction volume saw a substantial increase last month. Union Bank paymentsAccording to India’s Economic Times, the Union Bank of India is working towards transferring claims related to a number of employee benefits to CBDC wallets rather than the accounts of those salaried employees. Union Bank stated: “With an aim to promote CBDC wallet transactions, banks have been advised to encourage all staff members to transact using the digital currency and ensure 100% staff registration on digital rupee app.” Other banks have been playing their part in the current transaction level surge. This has included major private and state-run lenders such as HDFC Bank, Kotak Mahindra Bank, Axis Bank, Canara Bank and IDFC First Bank. These institutions disbursed employee benefits directly into CBDC wallets rather than traditional salary accounts, demonstrating a significant shift in adoption patterns. The RBI anticipates that non-financial firms will follow suit, contributing to a further boost in transaction volumes. The user base for the e-rupee has also witnessed steady growth, reaching approximately 4 million users, up from 3 million in December, according to an executive familiar with the pilot. Globally, several countries, including China, France and Ghana, are in the pilot stages of their central bank digital currency (CBDC) projects. Nigeria has rolled out its digital currency, although success has been limited despite offering incentives such as discounts on auto-rickshaw rides. To incentivize e-rupee transactions, Indian banks are offering rewards, aligning with the RBI’s push to enhance transaction volumes. Sharat Chandra, co-founder of the India Blockchain Forum, commended the move to compensate employees using CBDC and suggested expanding adoption incentives to other areas, such as toll tax collections, to further encourage widespread usage. The positive momentum in India’s digital currency landscape reflects a growing trend toward embracing innovative financial technologies. 

China’s GAPP proposes ban on gaming crypto token conversionChina’s gaming industry hit a significant speed bump on Friday as the General Administration of Press and Publication (GAPP) unveiled a draft proposing substantial changes to the regulation of in-game tokens, signaling a strategic shift in the country’s stance on digital currencies in gaming.Photo by blurrystock on UnsplashImplementing more stringent controlsThe proposed regulations by GAPP bring about a ban on the conversion of game tokens into physical goods or legal tender. These guidelines, spanning 64 articles, impose stringent requirements on gaming companies. These include mandatory licensing in China, a two-year data retention policy, adherence to national and socialist values in content and the eradication of anonymous user registrations.One significant aspect of the guidelines is Article 23, which specifically addresses the use of game tokens. It proposes restrictions on exchanging them for physical goods, services or legal tender.The regulatory landscape becomes more complex due to the ambiguity surrounding cryptocurrencies, which are not recognized as legal tender in China. Although a warning was issued about the risks inherent in non-fungible tokens (NFTs), they remain legal in China. NFTs feature prominently within blockchain-based gaming.Game providers are also confronted with new limitations on inducements, such as bonuses for registration or daily logins, and are mandated to implement measures against irrational consumer spending.Gaming sector falloutIn the wake of these developments, several Chinese tech giants experienced a significant market downturn in Hong Kong. Tencent, a global gaming powerhouse and one of China’s most valuable companies, saw a 12.4% drop on Friday, marking its worst day since October 2008. This decline erased a massive 367 billion Hong Kong dollars ($47 billion) from Tencent’s market value.NetEase, another gaming giant, witnessed a 25% dive in Hong Kong afternoon trade, recording its most substantial daily loss since its listing in June 2020. Additionally, Bilibili and Kuaishou, prominent players in video-sharing and short-video platforms, experienced declines of 9.7% and 7.2%, respectively, given their involvement in online gaming.Market uncertaintyWith this latest development, the future of gaming crypto tokens remains uncertain in China, with investor confidence having been hit hard. Putting the matter in context on Friday, Stansberry Research Analyst Brian Tycangco took to the X social media platform, stating:”Govt regulation will effectively render prevailing business models irrelevant due to uncertainty regarding monetization. Games are inherently reward-based and if you clamp down on the use of rewards/incentives, you turn an entire industry on its head.”The guidelines, open for public consultation until Jan. 22, 2024, have not yet been legally enacted. This time frame allows for feedback and potential adjustments before enforcement.Notably, the Web3 gaming sector has witnessed substantial activity, with approximately a million unique active wallets engaged daily over the past three months, according to DappRadar. Industry experts, including Yat Siu of Animoca Brands, anticipate a potential surge in user engagement, emphasizing the potential impact of these regulations on the gaming industry’s trajectory.