Shinhan Bank and SCB TechX Succeed in Stablecoin Remittance Pilot

Shanghai Embraces Blockchain, AI, and Digital Yuan with New GuidelinesIn a bid to stay at the forefront of technological advancements, the government of China’s largest and most populous city, Shanghai, has issued a set of guidelines aimed at promoting the widespread adoption of blockchain, the metaverse, and the digital yuan.Photo by Edward He on UnsplashIntegrating blockchain technologyThe objective of the measure is to further the use of these technologies across various industries within the city. Leading enterprises across a range of industry sectors, such as automotive, commodity trading, and e-commerce, are now required to look to incorporate these technologies into their operations.The guidelines, which were published last Tuesday, outline the government’s commitment to providing support for platforms that seek to enhance digitalization in production, operations, and management processes. Additionally, they emphasize the development of information technology services centered around big data, blockchain, the Internet of Things, artificial intelligence, and the mobile Internet.Bolstering commodity tradingA key focus for the government is the establishment of a robust internet system to bolster its local commodity trading service. This move is driven by a reliance on “the national financial factor market,” which aims to upgrade the over-the-counter derivatives platform for bulk commodities and strengthen the linkages between futures and cash.Furthermore, the guidelines pave the way for expanding e-commerce service platforms for industrial products, setting up a digital transformation service platform, and fostering the development and application of data resources.Shanghai’s status as China’s financial hub makes it an ideal testing ground for innovative technologies like blockchain and AI. However, China’s approach to cryptocurrency is more complex. It involves support for blockchain technology while at the same time applying strict measures against crypto trading and mining.Aligning with central government policyThe Chinese government’s support for blockchain technology stems from its recognition of blockchain as the underlying foundation of cryptocurrencies. Judging by the blockchain initiatives forwarded by the central government and regional Chinese administrations in recent months, it’s clear that China is keen to develop leadership in the use of blockchain across various sectors. It takes a different view, however, when it comes to projects related to decentralized cryptocurrencies and crypto trading.In recent years, China has cracked down on cryptocurrency activities. In 2013, the government banned initial coin offerings (ICOs), a fundraising method used for cryptocurrency projects. Subsequently, cryptocurrency exchanges were banned in 2017, followed by a prohibition on cryptocurrency mining in 2021.Several factors contribute to the Chinese government’s cautious approach to cryptocurrency. One major concern is financial stability, as crypto can be exploited for illicit activities like money laundering. According to a recent report, Chinese authorities are redoubling their efforts in pushing back against the use of crypto as they’re finding that it is being used to exploit capital control loopholes.These recent guidelines from Shanghai’s administrators aim to capitalize on the transformative potential of emerging technologies while ensuring prudent regulation and control over cryptocurrency-related activities in line with current central government policy emanating from Beijing.

Japan’s Aozora Bank Plans Digital Currency LaunchGMO Aozora Net Bank, a Japanese commercial bank and a member of a Japanese corporate consortium comprising over 100 members, has unveiled plans to introduce a blockchain-based digital currency known as DCJPY.Photo by David Edelstein on UnsplashDCJPYAccording to Reuters, the blockchain-based digital currency is scheduled for launch in July of the upcoming year. DCJPY will be a Japanese yen-based stablecoin, underpinned by deposits and harnessing blockchain technology to enable instantaneous and seamless transactions. Unlike conventional transfer methods that rely on a bank’s data system, DCJPY circumvents this process via a blockchain network, leading to a reduction in associated costs.Efficient inter-company paymentsThe primary objective of Aozora Bank’s venture is to streamline payments between businesses. The incorporation of blockchain technology offers a secure, transparent, and efficient transaction framework. By adopting this digital currency, companies can experience the advantages of swift settlements while concurrently mitigating the financial outlays tied to traditional banking systems.This consortium recognizes the vast potential of blockchain technology and is seeking to harness its inherent benefits to enhance diverse business operations. With the upcoming launch of DCJPY, the consortium will effectively be promoting the use of blockchain-based digital currencies within Japan and catalyzing innovation within the financial sector. The project has the potential to bring about heightened efficiency, cost reductions, and an overall enhancement in the realm of financial transactions.Banking heavyweightsThis move by Aozora aligns with the global surge in interest and adoption of blockchain technology. The bank operates as a prominent member of a broader consortium, which encompasses a multitude of Japanese corporations. The consortium includes major players in Japanese banking, including Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group, and Sumitomo Mitsui Financial Group. It has been meeting frequently to assess ways in which it can build a common settlement infrastructure for digital payments.MUFG is already deeply involved in blockchain-based innovation. The banking group has established its very own Progmat blockchain tokenization platform, which includes the Progmat Coin stablecoin platform.Last month, the bank announced a partnership with Binance which will endeavor to investigate the issuance of public blockchain stablecoins based on the Japanese yen. MUFG’s Progmat includes Mizuho as one of its clients on the blockchain platform.Stablecoin regulationThese recent announcements and Aozora Bank’s stablecoin plans follow the passage of a bill by Japan’s parliament earlier this year that restricts stablecoin issuance by non-banking institutions. The bill stipulates that only licensed banks, trust companies, and registered money transfer agents are permitted to issue stablecoins. Furthermore, it establishes a registration system for financial institutions planning to launch such digital assets, accompanied by anti-money laundering measures.A report published by Nikkei Asia earlier this year suggested that three Japanese banks, namely Shikoku Bank, Tokyo Kiraboshi, and Minna Bank, had all expressed the intention to issue stablecoins. In June, Japanese global information technology solutions company Fujitsu announced that it intended to launch a blockchain-based platform in conjunction with the Asian Development Bank.

Jeff “Jihoz” Zirlin, one of the co-founders of Sky Mavis, the Singapore-headquartered development firm behind both Axie Infinity and the Ronin Network, has faced a significant setback as some of his personal crypto wallets have fallen victim to a hack.Photo by GuerrillaBuzz on UnsplashFunds drained through Tornado CashThe hack has resulted in the loss of approximately $9.7 million worth of ether (ETH). The breach, which occurred on Feb. 23, saw two crypto wallet addresses associated with Zirlin compromised. The perpetrator managed to abscond with 3,248 ETH, funneling the stolen funds through Tornado Cash, a privacy-focused Ethereum mixer. The alarm was raised by PeckShield, a blockchain investigation firm, which identified the compromise of a "whale wallet" through the Ronin Bridge. PeckShield attributed the breach to a "wallet compromise," which facilitated unauthorized outbound transfers of funds. PeckShield's investigation revealed that the pilfered 3,248 ETH was initially dispersed across three different wallets before being funneled into Tornado Cash. This service, notorious for its use by hackers seeking to obfuscate the origin and traceability of illicit funds, served as a conduit for the stolen assets. Confirming the attack and remarking on having had a “tough morning,” Zirkin outlined on social media that “the attack is limited to my personal accounts, and has nothing to do with validation or operations of the Ronin chain.” He emphasized the implementation of stringent security protocols across all chain-related activities, seeking to reassure stakeholders of the company’s commitment to safeguarding user assets. Although specific details regarding the breach remain undisclosed, Zirlin's statement suggests a leakage of the private keys associated with his personal wallets, granting unauthorized access to the hacker. Ronin Network securePeckShield’s revelation prompted Aleksander Larsen, co-founder of Ronin Network, to swiftly respond, affirming the robust security measures of the Ronin Bridge. The social media post that Larsen had responded to, which he claimed to have an “extremely misleading title,” was later deleted. Larsen suspected that the breach stemmed from a wallet hack rather than a flaw within the bridge itself. Notably, Ronin had been targeted in a high-profile attack in March 2022, orchestrated by the North Korea-backed Lazarus Group, resulting in a $625 million loss.In response to this previous breach Sky Mavis initiated a comprehensive overhaul of Ronin's core systems to bolster decentralization and mitigate future vulnerabilities. $112M Ripple co-founder hackIn a separate incident, Binance intercepted $4.2 million worth of stolen XRP, part of the $112 million hack targeting Ripple co-founder Chris Larsen's personal wallet on Jan. 31. Unlike the Axie Infinity breach, the perpetrator behind Larsen's hack refrained from leveraging crypto mixer services or decentralized exchanges, enabling Binance to track and immobilize a portion of the illicitly obtained funds. Axie Infinity, heralded as a pioneering "play-to-earn" Web3 game, has emerged as a lucrative platform, enabling players to earn cryptocurrency and trade in-game assets via blockchain technology. Since its inception in 2018, the game has amassed $1.3 billion in revenue, underscoring its prominence within the burgeoning blockchain gaming ecosystem.