Oasys and XPLA to Host Hackathon Promoting Blockchain Interoperability

e-CNY Payments Enabled for Hong Kong Visitors From Mainland ChinaBank of China’s Hong Kong arm recently launched a digital yuan shopping festival, aiming to spur local consumption and promote the adoption of central bank digital currencies (CBDCs). The festival, which commenced on July 18, allows visitors from mainland China to make purchases in Hong Kong using the digital yuan.Bank of China (Hong Kong) Limited (BOCHK), a subsidiary of China’s central bank, initiated trials of e-CNY cross-border payments in Hong Kong last year, paving the way for the current shopping festival.Photo by Eric Prouzet on UnsplashSubsidized useAccording to a press release published by BOCHK earlier this week, as of July 18, digital yuan wallet holders have been able to use China’s CBDC to make payments at over 200 participating merchants across Hong Kong. Furthermore, consumers have the opportunity to receive shopping subsidies in digital yuan by scanning QR codes at specific stores, as stated in the BOCHK press release.The range of merchants accepting e-CNY payments spans from electronics sellers and pharmacies to supermarkets. Among the participants is U Select, a Hong Kong-based supermarket chain with a wide presence of more than 90 stores throughout the city.BOCHK strategically chose the summer tourist season for the expansion of e-CNY payments in Hong Kong. Chen Guang, representing BOCHK, mentioned the influx of tourists to the special administrative region, presenting a prime opportunity to attract more users and bolster local consumption through this cross-border shopping festival.The move makes BOCHK the first institution to partake in the cross-border e-CNY trial in Hong Kong. In December 2022, the bank initiated the first phase of its “digital yuan exclusive experience,” which allowed a limited number of BOCHK consumers to shop in the city using the digital yuan.Adoption strategyThe digital yuan has witnessed robust adoption in recent times, with China leading the global development of CBDCs. The Bank of China has been actively striving to advance and popularize the use of digital yuan in the country. Various initiatives, including business loans, trial expansions, and partnerships with prominent technology firms, have been undertaken to propel the widespread adoption of the digital currency.The introduction of the digital yuan shopping festival in Hong Kong signifies yet another significant step in China’s efforts to promote its CBDC and drive its usage in both domestic and international transactions. With over 200 merchants already participating and a seamless payment experience for tourists, the festival has the potential to encourage further adoption and shape the future of digital payments in the region.As this initiative gains momentum, it will be crucial to observe its impact on local consumption and the broader implications for CBDC adoption in the global financial landscape.The rate of China’s CBDC development and beyond that, the intent with which it is striving to drive adoption through a seemingly never-ending series of initiatives has been unmatched by any other nation. With that, the first real results of the active and widespread use of a CBDC are going to come from the country that makes up one-fifth of the world economy.

Hong Kong Lawmaker Explores Digital Asset Links With MainlandIn a move aimed at bolstering its position as a rising global Web3 hub, Hong Kong Legislative Council member Johnny Ng has expressed his aspiration to foster greater collaboration between digital asset platforms in Hong Kong and a Shanghai-based exchange.Photo by Simon Zhu on UnsplashDigital asset exchange interconnectivityAs Hong Kong continues to position itself as a key player in the emerging Web3 landscape, Ng envisions a future where licensed virtual asset exchanges in Hong Kong could be interconnected with their counterparts in Shanghai.Ng’s remarks came during an interview with Chinese media outlet The Paper. Drawing a parallel with the established Shanghai-Hong Kong Stock Connect program that seamlessly connects the stock markets of both cities, Ng raised the question of whether a similar connection could be established for licensed digital asset exchanges. Ng’s idea hinges on the potential to bridge appropriate platforms in Shanghai with those licensed in Hong Kong for virtual asset trading.Interconnected talent poolThe lawmaker’s enthusiasm for interconnectivity also extends to the talent pool. He expressed his desire for more Web3 talent exchanges between Hong Kong and the mainland, recognizing Shanghai’s status as a financial hub boasting numerous exceptional financial enterprises.Hong Kong’s approach to the Web3 landscape stands in contrast to mainland China’s stringent cryptocurrency regulations. While China banned cryptocurrency transactions in 2021, Hong Kong has embraced crypto firms, even encouraging partnerships between these firms and local banks.This year, Hong Kong authorities unveiled a series of cryptocurrency-related policy statements, aimed at fortifying its stature as a global financial center. A significant step followed in December, when the Hong Kong Legislative Council passed an amendment introducing a comprehensive licensing framework for virtual asset service providers (VASPs).In a recent development underscoring Hong Kong’s pro-crypto stance, HashKey and OSL have become the pioneering recipients of licenses for retail trading under the new regulatory regime, which commenced on June 1.Differing policy approachesPeople following developments in crypto and Web3 in China and East Asia have been speculating if the strategic positive shift in Hong Kong towards developing as a regional hub relative to the sector is indicative of a softening in the approach of mainland China towards the industry. It appears that Hong Kong’s pursuit of crypto business has been sanctioned by Beijing.Commentators have been monitoring the emergence of further encouraging signals. In May, Chinese state television featured a segment that covered cryptocurrency and in particular Bitcoin. Binance CEO Changpeng Zhao (CZ) was sufficiently encouraged by the development to suggest that it was “a big deal,” although the clip was later removed from the broadcaster’s website.Ng’s proposal aligns with the broader narrative of Hong Kong’s ambitious push into the Web3 landscape, capitalizing on its favorable regulatory environment to attract crypto-related ventures. As discussions evolve around the potential interconnectivity between Hong Kong and Shanghai’s digital asset exchanges, the global cryptocurrency community watches with interest to see if there are any emerging signs that Beijing will reciprocate positively.

Gyeonggi Officials with Cryptocurrencies Clear of Professional Conflicts in Virtual AssetsGyeonggi Province, South Korea’s most populated province surrounding the national capital of Seoul, announced on October 26 (local time) that the duties of all crypto-holding officials ranked 4 or higher in the provincial government are not associated with virtual assets. In Korea, public officials are ranked from nine to one, with one being the highest position.In anticipation of the amended Public Service Ethics Act coming into effect on December 14, the Gyeonggi provincial government introduced a revised employee code of conduct in August. This required officials of rank 4 or higher to report their crypto holdings within 10 days starting from August 21.Photo by Nattu Adnan on UnsplashReported crypto ownershipThe result indicated that out of 228 officials, 23 reported owning virtual assets. Among these, 15 officials held cryptocurrencies valued at less than KRW 1 million ($738), while the remaining 8 had holdings exceeding that amount.To determine any potential involvement with cryptocurrencies in their official duties, the Gyeonggi government examined the roles and responsibilities of these officials within their respective departments. Following this review, the matter was forwarded to the Gyeonggi Public Service Ethics Committee for further scrutiny.Ethics committee reviewOn October 20, the committee convened to assess the relationship between the officials’ duties and their crypto holdings. They unanimously concluded that none of the 23 officials had any ties to crypto in their official roles.The newly revised code of conduct elaborates on the conditions under which a public official’s responsibilities are associated with virtual assets. Specifically, an official’s duties are considered linked to virtual assets if they are involved in formulating or implementing crypto-related policies or laws; conducting related investigations, inquiries, or inspections; engaging in the registration and oversight of cryptocurrency exchanges; or if they are involved in supporting or overseeing the development of crypto technologies.In light of these definitions, officials who engage in any of the above roles are strictly prohibited from capitalizing on any crypto-related information they encounter during their professional duties for personal trading or investment. Furthermore, officials who either currently shoulder or have previously carried out such responsibilities are required to disclose any crypto holdings they acquire.In the future, once the revised Ethics Act is implemented, the Gyeonggi government will remain fully committed to preventing conflicts of interest among public officials. To bolster these efforts, Gyeonggi will introduce additional measures, including a thorough verification process for the accuracy of their cryptocurrency holdings reports.In situations where a public official with cryptocurrency holdings is assigned a position related to virtual assets, Gyeonggi will issue individualized instructions. These directives may entail either the liquidation of their cryptocurrency holdings or their removal from the specific role in question.Meanwhile, Gyeonggi will enhance its endeavors to furnish educational resources pertaining to virtual asset reporting. Moreover, the local government will restrict officials from holding virtual assets if they fall under financial disclosure obligations and are deemed to possess information about or exert influence on virtual assets.