First Digital to Introduce USD-Backed USD Stablecoin

Hong Kong regulators consider opening up crypto ETFs to retailHong Kong regulators are now exploring the possibility of allowing retail investors to participate in spot crypto exchange-traded funds (ETFs).The CEO of Hong Kong’s Securities and Futures Commission (SFC), Julia Leung, was cited by Bloomberg on Sunday as having indicated that provided that the necessary regulatory approvals and checks are in place, the regulator may be open to the notion of retail participation where spot crypto ETFs are concerned. Leung emphasized the regulator’s openness to innovative technology that enhances efficiency as long as it addresses potential new risks.Photo by Markus Winkler on Pixabay‘Happy to give it a try’She stated: “We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”While both the United States and Hong Kong currently permit futures-based cryptocurrency exchange-traded funds (ETFs), the adoption of such instruments has been relatively modest in comparison to the broader fund industry.In Hong Kong, there are currently ETF listings for products like Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures, with a total combined asset value of approximately $65 million. In June, Hong Kong’s largest ETF manager, Hang Seng, suggested that it too was considering a crypto product offering.In accordance with the SFC’s digital asset regulations, individual investors already have the opportunity to trade prominent cryptocurrencies like Bitcoin and Ether on licensed cryptocurrency exchanges since June 1. Presently, BC Technology Group Ltd.’s OSL and HashKey Exchange are the only platforms in Hong Kong with permits for cryptocurrency trading. Additionally, there are expectations that mandatory regulations concerning stablecoins will be introduced over the course of the next year.Prioritizing investor protectionLeung expressed the regulator’s cautious approach, stating:“As the crypto ecosystem evolves step-by-step to the point where we’re comfortable, then we’re happy to open up more access to the wider investing public.”Notably, Hong Kong also recently unveiled its Web3 plans, highlighting its commitment to embracing blockchain and decentralized technologies.Hong Kong introduced a specialized regulatory framework for virtual assets in June which are designed to attract businesses while prioritizing investor protection. That need to protect consumers has been underscored recently by the alleged fraud that has subsequently been uncovered involving HK$1.6 billion ($204 million) at the unlicensed JPEX cryptocurrency exchange in the city.Market reactionThe significance of such a move isn’t lost on crypto market participants. Taking to X, one wrote: “Seismic shift. Hong Kong’s play could reshape the Asian crypto landscape. #Bitcoin ETFs? A strategic move to anchor HK as the digital nexus of Asia.” Another claimed that this “might redefine the crypto landscape and fuel the next bull market.”A report published by the Hong Kong Stock Exchange in April found that crypto ETFs have the potential to play a significant part in the next phase of digital asset innovation in Asia.Leung emphasized the importance of a strong and comprehensive regulatory structure, highlighting the SFC's efforts to enhance transparency in processing license applications for virtual asset exchanges.Moreover, the Hong Kong Monetary Authority (HKMA), the Chinese autonomous territory’s central bank, is actively exploring the possibility of offering guidance to banks regarding the provision of digital asset custodial services. These services are considered vital for nurturing the growth of a digital asset ecosystem and ensuring investor security.

Asian Countries Dominate Chainalysis’ 2023 Global Crypto Adoption IndexBlockchain analytics firm Chainalysis has just unveiled an excerpt of its “2023 Global Crypto Adoption Index,” revealing that Asian nations are top of the class in terms of the pace of crypto adoption.The report extract published to the Chainalysis website brings into focus the remarkable strides made by a number of Asian countries, emerging as the front-runners in driving grassroots cryptocurrency adoption.The index showcases the dominance of regions like Central and South Asia, along with the broader Oceania regions. Astonishingly, six of the top 10 countries on the index hail from this part of the world.Photo by Louis Hansel on UnsplashIndia takes top spotIndia, in particular, shines as the torchbearer of cryptocurrency adoption in the region, securing its position as the largest cryptocurrency market. It not only leads the way in grassroots adoption but has also ascended to become the second-largest crypto market globally in terms of raw estimated transaction volume, eclipsing even some major global economies.It’s interesting that India should find itself in this position when you consider that a number of measures have been taken that could have been expected to dampen adoption. The Indian authorities introduced a 30% tax on capital gains earned through the sale of digital assets, as well as a 1% tax on Tax Deducted at Source (TDS) for all crypto transactions.Last month, Indian crypto exchange CoinDCX specifically cited these tax burdens, combined with the recent bear market, as being contributing factors in its decision to cut its workforce by 12%. Another excerpt of the Chainalysis report explicitly refers to these measures and their potential to retard cryptocurrency use.Adoption despite bear marketDespite a temporary downturn in worldwide grassroots cryptocurrency adoption, Chainalysis’ research finds that these developing Asian nations, have not only weathered the storm brought about by the recent bear market but have thrived, with their total grassroots adoption surpassing the levels of Q3 2020, just before the most recent bull market.Other countries featuring in the top ten include Vietnam (third), the Philippines (sixth), Indonesia (seventh), Pakistan (eighth), and Thailand (tenth). China, Turkey, Bangladesh, and Japan then feature within the top twenty.This data holds promise for the cryptocurrency landscape in the Asian region. Many of these nations are lower middle-income (LMI) countries that typically exhibit burgeoning industries and populations, collectively representing more than 40% of the global population. Chainalysis suggests that if these countries shape the future, cryptocurrencies are poised to play an indispensable role in shaping the global financial ecosystem.Institutional adoptionThe excerpt from the report also hints at the burgeoning trend of institutional adoption in high-income countries, even in the face of a lingering bear market. This suggests a potential dual-directional adoption scenario, where cryptocurrencies cater to the needs of users from both affluent and developing nations, bringing together a diverse spectrum of economic backgrounds.The report takes an optimistic outlook, stating:“Grassroots crypto adoption isn’t about which countries have the highest raw transaction volumes. . . . Instead, we want to highlight the countries where average, everyday people are embracing crypto the most.”“If LMI countries are the future, then the data indicates that crypto is going to be a big part of that future.”

One Store’s App Market to Support Polygon-Based dAppsSouth Korean native app market One Store said Friday that it has signed a memorandum of understanding (MOU) with Polygon Labs, the operator of the Polygon blockchain network, to provide robust support for Web3 games and decentralized applications (dApps) as part of its upcoming global service expansion.The signing ceremony for the MOU took place on Thursday at One Store’s headquarters in Seongnam, Gyeonggi Province. Peter Chun, CEO of One Store, and Marc Boiron, CEO of Polygon Labs, were in attendance.Polygon is a layer 2 scaling solution for Ethereum, with numerous domestic and international gaming companies already partaking in the Polygon ecosystem for a variety of purposes, such as Web3 game development and technological collaborations.Elevating user experienceThis new partnership is part of One Store’s efforts to offer enhanced choices for mobile users worldwide, setting its sights on overseas expansion and the creation of a global platform. With a focus on supporting Web3 games, the platform aims to cater to the blockchain gaming and app user base on an international scale, thus contributing to the expansion of the Web3 gaming ecosystem.Photo by Jonas Leupe on UnsplashAccording to the agreement, One Store will support marketing for Web3 games that have onboarded the Polygon platform, while Polygon Labs will encourage game developers that use its platform to enter One Store’s global market.“Through the upcoming global One Store platform, we will connect with users worldwide who are eagerly anticipating Web3 games and apps,” CEO Chun said.This marks a significant step towards the realization of a vibrant Web3 gaming and dApp landscape on a global scale. The collaboration is expected to bring about new opportunities and experiences for users seeking innovative and engaging digital content.Polygon’s collaboration with Korean industry leadersPolygon Labs has been teaming up with other Korean companies as well, including the telecommunications giant SK Telecom, in efforts to further nurture the ever-growing Web3 ecosystem.