Hong Kong’s Largest Bank in Lackluster Crypto Embrace

Busan to Merge Blockchain and Coffee through Smart Logistics PlatformThe Korean southern port city of Busan and its regional institution for industrial innovation, Busan Techno Park, announced that they will begin developing a collaborative platform that facilitates smart logistics in the local coffee industry through the use of blockchain technology. The project is aimed at enhancing transparency and trust in the industry by tracking the entire logistics process — from the importation of raw coffee beans through Busan Port to distribution to businesses, then purchase by consumers.Photo by Theo Crazzolara on UnsplashTracking production and flavor profilingThe platform will use artificial intelligence (AI) technology to track the distribution of coffee beans as well as objectively analyze various types of coffee to arrange flavor profiles based on factors such as weather, storage conditions, and the environment. This would eliminate any room for subjective opinions that are usually associated with taste evaluation.“This project aims to develop blockchain technology that can be used to trace the background of coffee beans starting from their country of origin,” said Kim Hyung-kyun, Director of Busan Techno Park. Blockchain technology’s strength lies in its ability to solve the problem of a lack of transparency between coffee producers and consumers.The platform was selected in April as a technology commercialization initiative under the Korean Ministry of Science and ICT’s 2023 Special R&D Zone Development Project. It is set to receive a total of KRW 11.8 billion (approximately $8.9 million) in governmental, private, and municipal funding until December 2025.Fostering transparency and securing a competitive edgeA ceremony was held at the Asti Hotel in Busan on Tuesday to kickstart the project and form the Busan R&D Innovation Valley Committee — consisting of two subcommittees dedicated to distribution and technology, respectively — to carry out the initiative.“It will be possible to manage data on changes in ingredients and quality due to storage conditions and duration. This will give sellers a competitive advantage and allow consumers to enjoy better-quality coffee at reasonable prices,” explained Oh Dong-joon, who is in charge of the distribution subcommittee.After the platform has been developed over the next three years, it will be available for coffee businesses and startup entrepreneurs in Busan. “In the case of specialty coffee, traceability and transparency are important. When the platform is established, it will be a significant help in verifying objective data related to problems that may occur during the import and storage of coffee beans,” remarked Jeon Joo-yeon, CEO of Busan-based specialty coffee brand Momos Coffee.Jung Yo-han, leader of the business mining division under the project’s technology subcommittee, added that consumers will be able to buy coffee that they can trust after it has been traced through the distribution process. The city will also be able to stimulate startups by leveraging blockchain technology and take advantage of the project’s scalability by applying it to all agricultural and marine products that are imported through Busan Port.

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.

The government of Bhutan, the Buddhist kingdom nestled in the Himalayas, has partnered with cryptocurrency payment service Binance Pay to launch the world’s first national-level crypto tourism payment system. In a recent blog post, Binance outlined details of the collaboration. Alongside the government and Binance, Bhutanese digital bank DK Bank will also play a role. The payment system enables international visitors to Bhutan who also happen to be Binance account holders to pay for a range of services within the kingdom.Photo by Mariia Shalabaieva on UnsplashFacilitating spending of over 100 cryptosUsing the Binance app, tourists visiting Bhutan can use dynamic or static QR codes in order to complete secure transactions via participating merchants in real time. The system supports users in spending over 100 cryptocurrencies to pay for goods or services, including hotel stays, tour guides and entrance fees to touristic sites. Payment using these digital assets will be settled instantly in Bhutan’s sovereign currency, the Ngultrum (BTN), with that settlement facilitated by DK Bank. Binance also asserted that the initiative facilitates inclusion and innovation by enabling small businesses in remote areas to accept crypto and in that way, to go digital. Bridging ‘cultures and economies’Binance CEO Richard Teng said that the initiative not only advances the use of crypto in the tourism sector, it also sets a precedent for “how technology can bridge cultures and economies.” Teng added:“This initiative exemplifies our commitment to innovation and our belief in a future where digital finance empowers global connectivity and enriches travel experiences.” Damcho Rinzin is also of the opinion that the initiative adds value beyond just being a tourism-related payment system. He stated:“This is more than a payment solution – it’s a commitment to innovation, inclusion, and convenience.” Binance described the new payment system as the first of its kind to offer end-to-end crypto-based payments at a national level, in a fully integrated manner. It added that previous systems established elsewhere had limitations and that by offering real-time confirmations, near-zero fees and a regulatory-compliant bank handling settlements, this system overcomes past limitations. Early adopterWhile Bhutan appears to have established a world-first with this system, it is no stranger to being innovative related to crypto. The kingdom has amassed a Bitcoin holding with a value in excess of $1 billion. It has collaborated with Bitcoin miner and Bitcoin mining equipment manufacturer Bitdeer on crypto-related ventures. In January it was announced that the Gelephu Mindfulness City (GMC), a special administrative region within Bhutan, is moving forward with plans to hold Bitcoin, Ethereum and BNB, a digital asset that was created by Binance back in 2017, within its strategic reserve. Bhutan’s early interest in crypto hadn’t gone unnoticed by Binance founder Changpeng Zhao (CZ). Last November, CZ commented on the X social media platform, in response to the news that Bhutan had accumulated in excess of $1 billion in Bitcoin, that many countries will use Bitcoin as a strategic asset going forward. The following month he visited the kingdom, meeting with the King of Bhutan.  During a panel discussion at Token2049 in Dubai in April, CZ commented that Bhutan is already advanced in its efforts to implement a national Bitcoin strategic reserve.