Korea’s Chungcheongbuk-do to Foster Regional Blockchain Ecosystem

Uzbekistan Revamps Crypto Mining with New Regulatory FrameworkUzbekistan is ushering in a reset on its approach to cryptocurrency mining with the implementation of a new regulatory framework by the central Asian country’s National Agency of Perspective Projects (NAPP).Photo by Farhodjon Chinberdiev on UnsplashFocusing on solar powerThese freshly endorsed rules were announced earlier this week. They establish stringent guidelines for cryptocurrency mining operations within the country, reserving mining exclusively for registered legal entities and mandating the use of solar power.Under the sweeping regulations, individual miners are barred from participating in cryptocurrency mining activities, a move aimed at bringing structure and oversight to the expanding crypto mining sector within Uzbekistan’s borders.A key feature of the framework is the requirement for cryptocurrency miners to harness electricity generated by solar photovoltaic means. This environmentally conscious approach mirrors global endeavors to promote sustainability and clean energy sources in the crypto mining sector. Miners are also permitted to connect to the national electrical power grid, but only under specific conditions as outlined in the legislation.Safeguarding the power gridIn this respect, Uzbekistan is likely to be learning from the experiences of its northern neighbor, Kazakhstan. Following a ban on crypto mining in China in 2021, Kazakhstan suddenly became the second largest global center for Bitcoin mining. Unprepared for this eventuality, this mining activity caused major problems for the country’s power grid, resulting in blackouts and unrest.The NAPP underscores the necessity for mining operations and service providers to adhere to these newly established rules. To engage in cryptocurrency mining legally, entities must secure the requisite permits and licenses. These permits, valid for five years, come with strict reporting obligations, ensuring transparency and regulatory compliance.Moreover, cryptocurrency miners must prioritize the technical integrity of their electrical supply systems, emphasizing safety and reliability to prevent electrical accidents and maintain secure operating environments.In a bid to nurture a controlled and regulated cryptocurrency ecosystem, Uzbekistan’s crypto watchdog has already issued licenses to several entities, including a cryptocurrency exchange, a crypto depository, and ten other crypto trading platforms. Encouragingly, discussions have taken place with global exchanges like Binance, Huobi, and Bybit, signaling Uzbekistan’s ambitions to establish itself as a cryptocurrency hub.Ban on individual minersThe NAPP’s latest framework also outlaws the mining of anonymous cryptocurrencies designed to enhance transaction privacy, such as Monero (XMR). This measure aligns with international efforts to combat illicit activities linked to anonymous digital currencies.It’s worth noting that these new regulations represent the latest in a series of decrees by the Uzbek government, reiterating the ban on individual miners and the use of cryptocurrencies for domestic payments. Consequently, the full impact of these recent regulations on the nation’s cryptocurrency mining landscape remains to be seen.Uzbekistan’s decision to confine cryptocurrency mining to legal entities employing solar power reflects a growing understanding of the opportunity the activity provides to effectively exploit excess renewable power. In July, the President of eastern neighbor Kyrgyzstan put forward an ambitious project to use crypto mining to exploit the country’s hydro-electric power resources.

Mercari, one of Japan's leading e-commerce platforms, has declared its intention to accept bitcoin payments starting from June of this year. The decision, which was reported by Japanese financial media outlet Nikkei on Friday, outlines that the processing of bitcoin payments will be managed through Mercari's Tokyo-based crypto subsidiary, Melcoin.Photo by Dmytro Demidko on UnsplashSeamless BTC conversionIt's noteworthy that Melcoin will convert all BTC payments into yen, ensuring vendors receive fiat currency despite the buyer's choice of bitcoin for payment. While the company won't display prices in bitcoin, listing items for sale in fiat yen, customers will have the option to select BTC as a payment method during the purchase process on the platform. In recent months, Mercari has introduced various crypto-related products, including the Mercari bitcoin crypto trading service. This service allows users to buy and sell bitcoin using the proceeds from their sales on the platform. The integration of a loyalty points system further enhances the crypto trading experience, enabling Mercari users to exchange their points for bitcoin. Remarkably, Mercari announced that its bitcoin trading service surpassed the 1 million user milestone in October, just seven months after its launch. At the time of the launch of the trading service, the company outlined that it would “make bitcoin more accessible to people who have never tried crypto trading before.” Notably, around 80% of the crypto users on Mercari had no prior experience with crypto-asset trading in June of the previous year. Expanding its crypto-related offering to include bitcoin payments unleashes much more potential relative to crypto adoption. 22 million monthly usersEstablished in 2013, Mercari has evolved into Japan's largest community marketplace platform, boasting 22 million monthly users as of July 2023. It’s a flea market application, making it a consumer-to-consumer platform that could play a significant role in bringing about bitcoin adoption in Japan among ordinary people. The company has also expanded its footprint internationally, with a particular focus on Europe. Market observers have labeled Mercari's crypto service, along with a competitor operated by Rakuten, as a potential "gateway" for bitcoin and crypto investors and traders. Rakuten, another major Japanese e-commerce platform deeply involved in the crypto space for an extended period, operates the Rakuten Wallet crypto trading service. Like Mercari, Rakuten has integrated its loyalty points program with its crypto arm, allowing users to trade their points for crypto-assets. Rakuten had also emerged last year among a shortlist of Asian companies expressing an interest in purchasing failed crypto exchange FTX. A recent survey highlighted the growing influence of these e-commerce giants in the crypto space. Japanese individuals who entered the coin trading scene towards the end of 2022 overwhelmingly favored either Mercari's bitcoin trading app (24.7%) or Rakuten's Rakuten Wallet platform (24.2%). This revelation dealt a blow to traditional crypto exchanges, with bitFlyer, the long-standing market leader, securing the third position with a share of 11.3%. This move contributes towards a more progressive crypto environment in Japan, where lawmakers recently indicated a willingness to consider making tax rules more accommodative of the crypto sector.

South Korean Banks Adopt Blockchain for Streamlined Civil Servant LoansSouth Korea’s state-run financial organizations and banks are embracing blockchain technology to streamline the loan process for government employees and enhance loan management for banks.Photo by Shubham Dhage on UnsplashBlockchain-aided loan servicesIn a collaboration announced today at the Korea Federation of Banks (KFB) in Seoul, the Korea Financial Telecommunications and Clearings Institute (KFTC), the Government Employees Pension Service (GEPS), and four local banks are coming together to introduce blockchain technology in providing loan services specifically tailored for civil servants. The four participating banks are NongHyup Bank, Hana Bank, DGB Daegu Bank, and Gwangju Bank.Easier applicationAt present, civil servants are required to acquire a physical loan recommendation letter from the GEPS in order to apply for a bank loan. However, with the implementation of the new loan system, the GEPS will have the capability to issue blockchain-based letters, which can be obtained by civil servants either in-person or remotely at banks. This innovative approach will significantly simplify the verification process for these letters.Easier managementFurthermore, the manual exchange of loan-related information, such as repayment history and retirement details, between banks and the GEPS will be replaced by a more efficient system. The KFTC will take on the role of mediator, ensuring that any changes to this information are immediately reflected in real time. This streamlined approach will significantly enhance loan management for lenders.The launch of this service is scheduled for November this year, bringing about improved accessibility to loans for government employees. As the project progresses, other financial institutions are expected to join in, further enhancing the convenience of public servants. Additionally, these collaborating organizations will explore joint services aimed at providing the necessary support to stabilize the livelihoods of civil servants.