Wiziin Earmarks $500K Pre-Seed Funding for Blockchain Investment

Bahrani Bank Launches JPM Coin PaymentsBank ABC, headquartered in Bahrain, has become the first Middle Eastern bank to offer faster cross-border payment solutions for corporate and financial institutions using JP Morgan’s Onyx Coin Systems.Photo by Satheesh Cholakkal on PexelsCentral bank collaborationThis blockchain-based permissioned system, housed within JP Morgan’s Onyx platform, aims to enhance the efficiency and speed of international payments. The introduction of the blockchain-based payment service by Bank ABC follows a closely coordinated effort with the Central Bank of Bahrain (CBB), demonstrative of the interest of both institutions in embracing cutting-edge financial technology.Central Bank of Bahrain Governor Rasheed Al Maraj praised the collaboration, stating:“After working closely with JP Morgan and Bank ABC over the past two years to experiment with cross-border commercial transactions between Bahrain and the US, leveraging the JP Morgan Coin System, we are pleased to witness the soft launch of this innovative banking solution by a Bahraini-based bank.”Embracing innovation and digitalizationThe initiative aligns with the CBB’s strategic vision to embrace innovation and digitalize the kingdom’s financial services sector. By eliminating inefficiencies in traditional cross-border payment systems, this solution aims to facilitate trade between Bahrain and the US, with the ultimate aim of stimulating greater economic activity.Bahrain has been demonstrating more recently a desire to move away from its oil-based economy and embrace blockchain technology as part of that diversification. Bank ABC Group CEO Sael Al Waary stated that it was playing a role as a key enabler of Bahrain’s vision for a digital economy.He expressed gratitude to the Central Bank of Bahrain for its support and leadership and recognized JP Morgan for its pivotal role in advancing cross-border payments. The bank’s CEO outlined the organization’s commitment to introducing innovative products and highlighted the benefits of the JP Morgan Coin Systems service. He explained:“Offering high-value cross-border payments via the JP Morgan Coin Systems service allows us to reduce traditional settlement periods considerably and be more cost-effective for our clients.”Naveen Mallela, Global Head of Onyx Coin Systems at JP Morgan, underscored the significance of the launch, stating: “Bank ABC has been one of the earliest adopters of the JPM Coin offering, and we are delighted to launch the first-of-its-kind commercial payment offering between JP Morgan and Bank ABC using distributed ledger rails.”Enabling cross-border transactionsThe service enables cross-border commercial transactions to occur instantly and with certainty between Bahrain and US corridors. While initially launched with USD and specific locations, the roadmap includes plans for additional locations and currencies, with the euro notably on the horizon. Furthermore, the introduction of programmable payment offerings will empower mutual corporate clients to execute event-driven and automated payouts, enhancing dynamic and real-time treasury management.The launch of this service is a pivotal step in Bank ABC’s digital transformation program, aimed at future-proofing and diversifying the bank’s offerings with the latest banking innovations. The initiative reinforces the bank’s undertaking to provide cutting-edge financial services while contributing to the evolution of Bahrain’s digital economy.As financial institutions across the world continue to explore the potential of blockchain and distributed ledger technology, Bank ABC’s collaboration with JP Morgan sets an example for others in the Middle East to evaluate.

Indonesia witnessed a striking decline in cryptocurrency tax revenue for the year 2023, according to local media. 63% decreaseA report by Indonesian business and financial publication Kontan detailed a tax take drop to $31.7 million (Indonesian rupiah 467.27 billion). That tax collection is in sharp contrast to the partial collection period in 2022 when the crypto tax regime was initially introduced. It represents a drop of around 63%. The decline is part of a broader tax reform targeting the "digital economy" implemented in 2022, with the Indonesian government expressing the expectation that the reform would enhance tax collection, fostering a "healthy and fair taxation system."Photo by Nick Agus Arya on UnsplashDeclining transaction volumesDespite bitcoin's impressive surge of approximately 160% throughout 2023, the dip in crypto tax revenue was notable. The decrease is closely tied to a drop in transaction volumes over the same period compared to 2022. A report by CoinDesk Indonesia last week put that trading volume decrease at around 60%. Crypto transactions in Indonesia face dual taxation – a 0.1% income tax and a 0.11% value-added tax (VAT). Additionally, local crypto exchanges are subject to a special tax of approximately 0.04%, contributing to the national digital asset bourse. Disadvantaging local exchangesLocal exchanges in Indonesia, including prominent ones like Indodax, have voiced discontent with the high tax rates, contending that these levies are driving users towards unregulated offshore exchanges. Earlier this month Indodax CEO Oscar Darmawan called on the Indonesian government to review crypto tax rates. Darmawan highlighted that the cumulative taxes on crypto transactions often surpass the trading fees paid by users, posing a risk of users seeking more cost-effective alternatives. Local exchanges suggest that crypto transactions should only be subject to income tax, eliminating the VAT component. This proposal comes as Indonesia's Financial Services Authority (OJK) prepares to implement cryptocurrency regulations in early 2025. The aim is to align the taxation of cryptocurrencies with their market nature, possibly redefining them more as securities than commodities. Inadequate tax regulation can lead to a decline in local market activities, potentially resulting in capital flight to more favorable jurisdictions. Indonesia's situation serves as a reminder of the crucial need for policies that understand and adapt to the dynamic nature of the cryptocurrency sector. India is being similarly challenged. Local exchanges there have also complained of punitive taxation, which resulted in Indian users migrating to offshore exchanges. That scenario led indigenous exchanges to lobby the government to take action. The authorities have duly acted, flagging a number of global exchanges for operating illegally within India. It’s not all bad news for the development of digital assets within Indonesia. The country still ranks highly in terms of crypto adoption within the Asian region. Crypto was also floated as an election issue recently by Gibran Rakabuming Raka, a vice-presidential candidate in the upcoming election. The politician expressed his commitment to accelerating the country's position as a leader in the digital revolution. 

At Hong Kong FinTech Week 2025, Securities and Futures Commission (SFC) Chief Executive Julia Leung outlined plans to link Hong Kong’s crypto market with global liquidity. She announced that licensed virtual asset trading platforms (VATPs) will be allowed to share a global order book with their overseas counterparts. According to a statement published on the SFC’s website, this step will enable local investors to access international markets more efficiently, improving price discovery and competitiveness. Leung added that more initiatives are on the way to connect local brokers directly to global liquidity networks. This latest connectivity push comes as Hong Kong considers new guardrails for crypto holding companies such as digital asset treasuries (DATs), which hold cryptocurrencies as strategic assets.Photo by Manson Yim on UnsplashSFC points to regulatory gaps for digital asset treasuriesThe state-owned newspaper Wen Wei Po reported that Securities and Futures Commission (SFC) Chairman Kelvin Wong noted the current lack of regulations governing listed companies operating as DATs and the limited understanding of such entities. Chairman Wong added that firms seeking to list in Hong Kong as DATs would need to persuade both the SFC and the Hong Kong Stock Exchange (HKEX) of their suitability. For companies already listed, he urged investors to remain alert to the potential risks involved. This regulatory concern over crypto investing companies emerges as Hong Kong simultaneously presses ahead with its ambition to become a leading hub for digital finance. City advances on e-HKD and tokenizationIn line with that ambition, the Hong Kong Monetary Authority (HKMA) unveiled its e-HKD Pilot Programme Phase 2 Report in an Oct. 28 press release. The report outlines the potential benefits of its central bank digital currency (CBDC), the e-HKD, and tokenized deposits, noting that public feedback on both concepts has been broadly positive. The program's second phase involved 11 pilot projects led by various consortiums. These projects explored retail use cases, emphasizing the e-HKD’s commercial viability and scalability. Key focus areas included the settlement of tokenized assets, programmability, and offline payments. Participants in the program included Aptos Labs, the Boston Consulting Group (BCG), Hang Seng Bank, Standard Chartered, and BlackRock. Based on the report's findings, the HKMA stated it would initially prioritize the e-HKD’s application in wholesale or large-value payments, leveraging its credit risk–free nature as a central bank liability. Concurrently, the authority plans to continue studying potential retail and corporate applications, aiming to lay the groundwork for broader implementation by the first half of 2026. Survey shows strong investor appetiteAmong the program’s participants, Aptos Labs, Boston Consulting Group (BCG), and Hang Seng Bank reported accelerating interest in tokenized funds. A survey they conducted found that 61% of retail investors in Hong Kong and mainland China planned to double their exposure. Held between May and June 2025 among more than 500 retail fund investors, the survey tracked sentiment and appetite for tokenized products. Mainland participants showed particularly strong demand for cross-border access. The findings also detailed differing motivations among Hong Kong investors. Active traders expect to lift tokenized fund allocations from 10% to 26%, attracted by round-the-clock trading and greater flexibility. Wealth transfer planners indicated an expected expansion from 5% to 16%, highlighting programmable fund structures for tailored trusts and transparent oversight. Long-term investors aim to raise exposure from 8% to 25%, citing instant liquidity and the ability to use tokenized assets as loan collateral. Mainland investors projected their allocations would climb from 11% to 24%, reportedly viewing tokenized funds as a practical route around capital restrictions. The survey noted that programmable features could support dynamic allocation across Hong Kong products, the onshore use of profits, and smoother cross-border transfers. BCG commented that the survey outcomes align with Hong Kong's measured advance in crypto oversight, pointing to the city’s stablecoin regime that came into force in August. The Hong Kong Monetary Authority (HKMA) has signaled, however, that licensing under that regime will not begin until early next year. The ongoing development of the e-HKD and the prospective regulation of digital-asset treasuries point to Hong Kong’s broader strategy of integrating digital finance into its mainstream economy. Together, these initiatives underscore a cautious yet steady effort to position the city as a global center for digital finance.