RaonSecure to Develop Digital Identity Strategy for the Indonesian Government

SBI Digital Asset Holdings (SBI DAH) has unveiled a new joint venture with Chiliz, geared towards introducing soccer club fan tokens to Japan.  Bringing a fan engagement token offering to JapanThese tokens, operating under the Socios fan engagement brand, encompass soccer clubs such as Arsenal, AC Milan, Manchester City, FC Barcelona, Inter Milan and Paris Saint-Germain. Both companies outlined to The Block in a joint statement that the purpose of the joint venture is to provide local sports fans in Japan with access to tokens associated with these high profile soccer clubs.Photo by Konstantin Evdokimov on UnsplashAlongside this collaboration, SBI DAH intends to establish a node on the Chiliz Chain. Notably, over 2 million users have already engaged with the Socios fan tokens, signifying a burgeoning interest in this space. Rather than depend upon non-fungible tokens Chiliz relies upon fan tokens, representing a distinct category. They're fungible, akin to tracking stocks, facilitating fan engagement through voting, competitions, VIP experiences, merchandise and exclusive offers.  In Japan, private investors traditionally exhibit more active engagement with companies, often receiving incentives such as discount coupons, gift cards, points and memberships. While fan tokens don't confer ownership rights in the clubs, they offer similar avenues for engagement.  Fernando Luis Vázquez Cao, CEO of SBI DAH, highlighted the importance of technology in enhancing community experiences, expressing enthusiasm for collaborating with industry leaders like Chiliz to introduce novel experiences to the Japanese audience. Vázquez Cao stated:”The partnership between SBI DAH and Chiliz will bring together the best-in-class capabilities of both traditional finance and Web3, leveraging fintech innovations to transform the sports and entertainment experiences for communities.” The recent transition of the Chiliz blockchain from a Proof of Authority (PoA) to a Proof of Staked Authority (PoSA) version marks a significant step forward, attracting node operators like Paris Saint Germain and enhancing the network's capabilities. PoSA is a hybrid consensus algorithm that enables faster block times and reduced transaction costs. Additional partnershipsIn addition to its collaboration with Chiliz, SBI DAH boasts a diverse portfolio of blockchain interests, spanning initiatives such as AsiaNext, SBI Digital Markets and crypto custodian Zodia Custody. Many crypto projects have partnered with the company as a means to gain access to the Japanese market. One of the most recent examples is its partnership with USDC stablecoin issuer Circle.  The objective of that partnership has been to expand the circulation of stablecoins in Japan, but particularly USDC. Moreover, SBI DAH has made strategic investments in prominent players like Swiss digital asset bank Sygnum, Blockdaemon and the Tangem wallet. SBI Holdings, the parent company of SBI DAH, similarly maintains an extensive involvement in blockchain investments and activities.  In tackling the Japanese market, Chiliz will have to contend with a local competitor in the form of FiNANCiE. It has emerged to fill a similar role, fostering relationships with domestic sports teams, including J-League soccer clubs. By contrast,  Chiliz has provided broader international exposure. International competitors include Sorare and Dapper Labs, which concentrate on NFTs.

On Wednesday, the Office of the Privacy Commissioner for Personal Data (PCPD) in Hong Kong launched investigations at six premises controlled by Worldcoin, the biometric cryptocurrency project established by Sam Altman, the CEO of OpenAI. Potential personal data privacy risksIn a statement, the Privacy Commissioner expressed serious concerns about potential risks to personal data privacy. The PCPD executed warrants as part of the inquiry into Worldcoin's identity verification project, particularly focusing on the use of iris-scanning orbs for identity verification. The PCPD urged Hong Kong residents to consider the implications of Worldcoin's biometric data collection and emphasized the importance of evaluating the legitimacy of such data collection. The Commission also advised individuals to inquire about the purpose of data collection, the intended use of the data, the classes of entities with access to the data, the retention period of biometric data and the safety measures implemented to protect sensitive information. "The PCPD is concerned that the operation of Worldcoin in Hong Kong involves serious risks to personal data privacy, and believes that the collection and processing of sensitive personal data by the relevant organization may be in contravention of the requirements of the Personal Data (Privacy) Ordinance," stated the privacy watchdog. The Commission highlighted that any personal data controlled by Worldcoin must be collected for a lawful purpose related to the project's function or activity, with the information collected from users' irises deemed sensitive according to regulatory guidelines.Photo by Harpreet Singh on UnsplashGlobal scrutinyWorldcoin, which commenced operations in 2021 and officially launched in July 2023, has faced regulatory scrutiny in various countries due to privacy concerns. As of December 2023, Worldcoin reported that over 5 million people had created accounts using their identities. However, the project's approach to identity verification through iris scanning has triggered investigations and actions by regulators. Notably, the project suspended services in Kenya and halted iris scans in India in response to regulatory challenges.  The company’s activities in the French and Brazilian markets have been suspended. Last year the UK’s Information Commissioner’s Office said that it would make further enquiries into the company’s activities. Meanwhile, the German data watchdog has been investigating Worldcoin since 2022. In an effort to clarify the efforts the company is making to achieve compliance across international jurisdictions where data privacy is concerned, Worldcoin recently published a blog post on the subject. Within it, the company states that it “is designed to be fully compliant with all laws and regulations governing data collection and data transfer." Despite its ongoing regulatory challenges, Worldcoin CEO Alex Blania remains steadfast in advancing the project's mission, stating recently:"We race toward billions of users as fast as we possibly can."  The project closed out 2023 by expanding into Singapore. The privacy concerns surrounding Worldcoin underscore the growing importance of balancing technological innovation with robust data privacy regulations to ensure the protection of individuals' sensitive information.

StraitsX, a Singapore-headquartered digital asset infrastructure provider, has partnered with global payments firm Visa and Hong Kong-based RedotPay to enable the Hong Kong firm in launching a crypto credit card product offering. The partnership combines Visa’s global payments network with StraitsX’s facilitation as a means of accessing that network. Meanwhile, RedotPay’s proprietary real-time conversion technology enables users to spend crypto using the card on goods and services priced in fiat currency.Photo by Markus Winkler on UnsplashVisa BIN sponsorshipStraitsX published details of the development on its blog on Feb. 11. The company is authorized by Visa to act as a Visa BIN (Bank Identification Number) sponsor. Essentially, it acts as the conduit through which RedotPay is enabled to issue its crypto credit card. By leveraging StraitsX’s BIN sponsorship, RedotPay has cut through the complexity and cost that would be involved in trying to gain principal membership of the Visa network. Furthermore, as a BIN sponsor, StraitsX will handle compliance and security. The card offering allows holders to make purchases using crypto through the global network of merchants that accept Visa payments. Jason Tay, head of commercial at StraitsX, described the partnership as “a game changer for everyday retail use cases,” on the basis that the new card issuance will enable users to leverage their digital assets with ease in respect of daily transactions. Both companies emphasized that the partnership has led to a product offering that bridges the gap between digital assets and conventional commerce. Tay said that it “will transform how consumers interact with cryptocurrencies in the retail space." He added: "By combining our technology with Visa's vast network, we are making it easier than ever for users to seamlessly integrate digital assets into their everyday spending.” Targeting the unbanked & crypto usersRedotPay CEO and co-founder Michael Gao said that the collaboration marked a significant step forward in the company’s mission to make crypto payments accessible and user-friendly, while contributing towards the mass adoption of cryptocurrencies within payment systems. “Our users will enjoy the flexibility of spending their digital assets just like traditional currency,” he added. It’s understood that the product offering targets crypto users primarily in Singapore. Adeline Kim, Visa’s country manager for Singapore and Brunei, highlighted the potential of the card offering, given that over 35% of digital asset owners in Singapore use them for retail purchases. That data emerged via a Visa study which was completed in 2023. The same study found that close to six in 10 consumers in Singapore are aware of digital assets.  While this marks the official launch of the product, RedotPay soft-launched the card in late 2024. StraitsX has been influential in enabling other crypto-related payments systems in Asia. Last December it assisted Thailand’s Kasikornbank (KBank) in rolling out a Thai baht to Singaporean dollar cross-border payments solution implicating the use of stablecoins. The company received Major Payments Institution (MPI) licenses from the Monetary Authority of Singapore in July 2024.