Beijing Municipal Government Unveils Web3 White Paper

Bybit Gets Outline Approval to Operate in KazakhstanBybit, the cryptocurrency spot and derivatives trading platform, is expanding its operations with a recent “in-principle” approval from the Astana Financial Services Authority (AFSA) in Kazakhstan. This approval allows Bybit to operate as a digital asset trading facility and custody services provider at the Astana International Financial Centre (AIFC).Photo by Engin Akyurt on PexelsExpanding area of operationsBen Zhou, the co-founder and CEO of Bybit, expressed his belief in the promising potential of the Commonwealth of Independent States (CIS) region for the growth of the crypto industry. He also emphasized Bybit’s commitment to complying with local regulations, following the recent scrutiny the company faced in Japan for operating without proper registration.To obtain permanent authorization to serve the local market, Bybit must fulfill certain pre-conditions specified in the in-principle approval and complete the application process. In April, it emerged that the company had established its global headquarters in Dubai, where it has already secured “in-principle” approval to operate a virtual assets business. Bybit has also been active in Hong Kong and is in the process of obtaining a license to trade in the Chinese autonomous territory.Debit card and lending servicesAs well as a geographical expansion, in recent months Bybit has also been expanding its service offering. On May 2, the exchange announced the introduction of crypto lending services for its users. This addition allows users to lend and borrow cryptocurrencies through the Bybit platform, providing them with more opportunities to maximize their holdings.Earlier this year, Bybit collaborated with Mastercard to launch a new debit card tailored for cryptocurrency payments. This partnership aimed to bridge the gap between traditional financial systems and the growing crypto ecosystem, allowing users to spend their cryptocurrencies seamlessly in everyday transactions.Kazakhstan’s crypto strategyKazakhstan got off to a difficult start with crypto. Once crypto miners were banished from China, many of them moved operations to Kazakhstan, putting pressure on the local power grid.The local administration has since gotten to grips with the industry, restricting crypto miners’ access to cheap electricity. Bybit’s decision to offer services in Kazakhstan aligns with the country’s current efforts to position itself as a regional hub for crypto, mining, and blockchain.In February, local officials implemented a mandate that requires 75% of revenue generated from crypto mining to be sold through a crypto exchange, with the aim of combating tax evasion.CBDC developmentFurthermore, Kazakhstan has been actively exploring the development of a central bank digital currency (CBDC) and is currently in the pilot phase of its implementation. The introduction of a CBDC can potentially revolutionize the country’s financial landscape, offering faster and more efficient digital transactions while maintaining regulatory oversight.Bybit’s pre-approval in Kazakhstan signifies the company’s strategic expansion into a region with a favorable regulatory environment for cryptocurrencies. As the crypto industry continues to evolve, partnerships between traditional financial institutions and crypto exchanges, like the collaboration between Bybit and Mastercard, demonstrate the increasing integration and acceptance of digital assets in mainstream financial systems.

Busan Hosts Blockchain Conference with Aim to Become Digital Financial HubBusan Metropolitan City hosted a blockchain conference on Monday as part of its aim to establish itself as a leading digital financial hub, according to Korean news agency News1.©Pexels/BERK OZDEMIRDot-com bubble comparisonDuring the conference, Kim Sang-min, chairman of the Busan Digital Asset Exchange Establishment Committee, highlighted the distortion in the blockchain landscape caused by unfair trading due to market monopolies and subsequent regulatory challenges. He compared the current situation to the dot-com bubble, stating that despite past issues, Korea has become a technological powerhouse. Kim suggested that while there may be challenges in the crypto exchange industry, excessive regulation should be avoided to promote growth.Kang Dae-goo, CEO of crypto exchange Borabit, agreed that many industries face initial growing pains, and the crypto industry is no exception. He urged Korea to join the race with financially-advanced countries promoting cryptocurrency in order to thrive in the digital age.Busan as digital financial centerExperts at the event identified Busan as the city with the greatest potential to become the nation’s premier digital financial center. Kim noted that Busan, which has been designated as a zone with lenient blockchain regulations, houses financial institutions with assets totaling 261 trillion won (~$195 billion) as of 2021. The city also hosts various international events for games and movies, providing ample content to develop virtual asset ecosystems.Kim proposed the establishment of a digital asset exchange that focuses on investor protection, emphasizing decentralization, fairness, and integration. He called for addressing current monopolistic governance practices and resolving unfair practices within crypto exchanges, such as cryptocurrency listing evaluations.More efforts urgedAttendees at the conference suggested that the Busan government and regional banks should take the lead in building infrastructure to attract companies. Kang noted that even though Busan has been designated as a blockchain special zone for four years, 48% of the industry remain unaware of this. He encouraged Busan to step up its efforts, citing examples of other municipalities, such as Incheon, which are actively engaging in various blockchain projects.Kang stressed the importance of public bodies providing infrastructure and support to attract businesses, adding that a business-friendly environment with a proper screening scheme will facilitate self-correction within the blockchain market as problematic companies are gradually filtered out.

South Korean brokerage firms are expanding into the security token offering (STO) space, a sector gaining attention ahead of the upcoming presidential election in June. Photo by Raymond Yeung on UnsplashDedicated STO divisionsAccording to local outlet Kukinews, major players like Mirae Asset Securities, Hana Securities and Shinhan Securities are either establishing dedicated STO divisions or partnering with tokenization platforms to stay ahead of the curve. Some are also exploring fractional investment opportunities tied to real-world assets (RWAs) such as real estate, art and music copyrights. Security tokens are blockchain-based digital assets that represent rights to real-world assets (RWAs) and, as the name suggests, are classified as securities. The financial industry is increasingly interested in this technology for its potential to accelerate digital transformation. However, trading such tokens requires a comprehensive legal framework—something that is currently lacking in Korea. Election renews STO interestSTOs have resurfaced as a key topic, with presidential candidates from both the left and right likely to include them in their campaign agendas. The renewed interest follows the ousting of President Yoon Suk-yeol earlier this month, after the Constitutional Court upheld his impeachment by the National Assembly over his declaration of martial law. Before the presidential election became imminent, legislative discussions around STOs had stalled in the National Assembly and received little attention. Among the standout moves made by presidential hopefuls, Lee Jae-myung, a primary candidate from the Democratic Party of Korea (DPK), recently added Kim Yong-jin, an STO expert and professor at Sogang University, to his policy advisory group. Meanwhile, lawmakers across party lines have introduced amendments to the Electronic Securities Act and the Capital Markets Act, aiming to establish a regulatory framework for STOs, according to the National Assembly’s National Policy Committee. This regulatory shift in political circles favoring STOs has been anticipated by the financial industry. An unnamed official from a brokerage firm predicted that presidential candidates will propose measures such as legalizing security tokens, advancing a regulatory framework for virtual asset service providers (VASPs), promoting investment in crypto-related businesses and permitting the use of stablecoins. Some observers even expect these bills to receive final approval within the year. Brokerage meets blockchainKorean securities firms' push into the STO space is further highlighted by a recent partnership between Shinhan Securities and the Solana Foundation.According to Yonhap, the two parties signed a memorandum of understanding (MOU) to collaborate on expanding the digital asset ecosystem. Their cooperation will focus on STOs, RWAs, crypto custody infrastructure, stablecoin payments for both online and offline use and responses to global policies and regulations.