Hong Kong and the UAE Collaborate on Crypto Regulation

Incheon City to Host Blockchain Conference Showcasing its VisionIncheon City will host a blockchain conference, Incheon Metanomics 2023, to showcase its vision at the Songdo Convensia Convention Center on May 9.The event will present the city’s goal of building a blockchain ecosystem and fostering digital economy growth. About 150 blockchain experts from around the world are expected to attend, according to Block Media.Insightful talksProminent industry figures, including Leon Sing Foong, the head of Asia-Pacific operations at cryptocurrency exchange Binance; Steve Park, Asia-Pacific head of public policy at online game platform Roblox; and Justin Kim, a solutions architect at semiconductor company AMD, will speak at the event. Foong will talk about the collaboration between crypto exchanges and governments, Park will provide insights into the future of the metaverse, and Kim will address upcoming trends in decentralized storage systems.Registration for the conference is free and open until May 4 through Event Us, with a live stream of the event available on YouTube.Incheon and DubaiIncheon has been working towards establishing a special digital economy zone within the city by utilizing blockchain technology. In March, Incheon Mayor Yoo Jeong-bok met with Ahmed Bin Sulayem, the executive chairman of the UAE’s Dubai Multi Commodities Centre (DMCC), to discuss cooperation in the blockchain industry and digital economy.The DMCC, a free trade zone in Dubai, hosts over 65,000 workers from more than 21,000 companies across 180 countries. Notably, the DMCC crypto center is home to a community of over 500 crypto firms, fostering the Web3 and blockchain economy.Similarly, Incheon operates a free trade zone that connects 147 cities with populations exceeding 1 million within a three-hour flight radius. The Incheon Free Economic Zone is appealing to global blockchain companies as it offers flexible business operations for foreign entrepreneurs.© Pexels/joon young, Park

dtcpay forges strategic partnership in launch of crypto payments systemSingapore-based dtcpay has announced a collaboration with Singaporean data-sharing platform PlatON and Chinese payments firm Allinpay International, marking the imminent launch of a digital currency payments system.Photo by Jonathan Borba on PexelsPOS terminal crypto paymentsThe trio is set to unveil a cutting-edge digital currency payment system, leveraging smart point of sale (POS) terminals supporting a range of currencies, including USDT, ETH and BTC. The primary goal of this partnership is to broaden the reach of digital payments, providing global users with faster, more cost-efficient and secure payment experiences.The overarching objective of the collaboration is to empower partners and merchants to seamlessly accept payments in both fiat and digital currencies. By doing so, dtcpay, PlatON and Allinpay International aim to enhance operational efficiency, broaden business outreach and capture the attention of a younger customer base.Officials emphasize that this venture aligns with dtcpay’s commitment to delivering secure and efficient digital payment solutions while diversifying its service offering. A spokesperson for Tonghua International, Allinpay International’s parent company, stated:“We are very pleased to cooperate with industry leaders, PlatON and dtcpay. This cooperation will not only promote the development of digital currency payments but also help merchants better adapt to the modern payment trend and meet the needs of young consumers.”A collaboration that relies on core competenciesThe collaborative effort capitalizes on the strengths of each entity. dtcpay facilitates swift and secure digital and fiat currency exchange. PlatON contributes advanced privacy computing technology for robust technical infrastructure, while Allinpay International provides smart terminals and online aggregate payment interfaces, eliminating entry barriers relative to Web3 payments.In addition to driving advancements in digital currency payments, Allinpay International seeks to support merchants in adapting to modern payment trends and meeting the preferences of younger customers. dtcpay’s comprehensive suite of services includes multi-currency swaps, online checkouts and in-store POS solutions, positioning the company as a one-stop solution for merchants embracing the future of payments.Founded in 2019 in Singapore, dtcpay operates as a regulated payment service provider licensed by the Major Payment Institution (MPI) under the Monetary Authority of Singapore (MAS).The company struck up a similar partnership in September, bringing crypto payments to the POS system of Jeripay, which has a network of 8,000 terminals in Singapore. In an interview earlier this year, the firm’s CEO Kanny Lee outlined that dtcpay had targeted Hong Kong and Dubai as markets in which the company plans to expand.Sumsub partnershipThe collaboration’s momentum was further solidified at the end of September 2023 when dtcpay partnered with Sumsub, a global full-cycle verification platform. This partnership aimed to enhance the security and reliability of digital currency payments in target markets such as Singapore, Hong Kong, Dubai, the UK and Europe. Sumsub integrated its electronic Know Your Customer (e-KYC) service into dtcpay’s wallet platform, streamlining the onboarding process for customers engaging in transactions through the platform.PlatON is an open financial infrastructure that features verifiable and privacy-preserving computation. It will endeavor to bring financial-level system stability and compliant digital asset management to the collaboration. Allinpay is a global financial payment company focused on providing diverse payment solutions while enhancing digital financial technology services globally.

Hong Kong and Kazakhstan Pilot SWIFT’s CBDC SolutionCentral bank digital currency (CBDC) development globally is unrelenting, with the latest iteration of that involving global financial messaging network SWIFT.The global member-owned cooperative recently disclosed that three central banks are currently participating in beta-testing of this revolutionary solution, including the Hong Kong Monetary Authority (HKMA) and the National Bank of Kazakhstan.Photo by NASA on UnsplashBuilding upon initial successThe company provided details on the initiative via a press release published to its website on Wednesday. Simultaneously, an extended consortium of over 30 financial institutions is embarking on sandbox experiments to explore a multitude of potential use cases.The impetus behind SWIFT’s commitment to CBDC interoperability grew stronger after a successful round of sandbox testing. Participants in the initial phase quickly recognized the potential and intrinsic value of SWIFT’s solution.Building on this success, the beta version of SWIFT’s CBDC connector solution is now being integrated into the infrastructure of three central banks and monetary authorities.Second phase testingIn tandem with the beta testing, SWIFT has inaugurated a second phase of sandbox experiments, drawing in a consortium of commercial banks, central banks, and financial market infrastructure providers. This phase is dedicated to exploring an array of use cases, ranging from trigger-based payments for digital trade platforms to foreign exchange models, delivery vs. payment mechanisms, and liquidity-saving techniques.Eighteen central and commercial banks had taken part in the first phase of those sandbox experiments. Equally, the second phase has attracted a long list of entities, including the Reserve Bank of Australia, Deutsche Bundesbank, HKMA, Bank of Thailand, CLS, and others. With thirty leading global financial institutions participating in this latest testing round, that makes for a 66% increase in participation by comparison with the first phase. Their collective input and collaboration will contribute towards shaping the future landscape where CBDCs are concerned.Tom Zschach, Chief Innovation Officer at SWIFT, commented on the use of the technology in bridging from existing systems, stating:“The financial community has already recognized the strong potential of our CBDC innovations for preventing digital islands while securely bridging the payment systems of today and the future.”Global hotbed of innovationThe American think tank, the Atlantic Council, has been tracking CDBC projects on a global basis. Its endeavors in that respect demonstrate the expansive efforts that are being made to develop this technology.19 of the G20 countries are in advanced stages of CBDC development, with nine already in pilot phases. While this proliferation signifies the growing importance of CBDCs on the global stage, it also raises concerns about potential fragmentation as countries predominantly focus on domestic usage.SWIFT has taken a proactive stance in addressing the potential challenges of a fragmented CBDC landscape. The company embarked on its CBDC journey over 18 months ago, with the initial sandbox phase simulating nearly 5,000 transactions between different blockchain networks and existing fiat-based payment systems.