Japan’s Kumamoto City Bolsters Innovative Blockchain Startups

Regional Chinese City Enables e-CNY Bus Fare PaymentsIt appears with every passing week, there’s a new initiative in China to bring about greater everyday use of the digital yuan. Recent days have not disappointed with the news that Jinan, the capital of China’s Shandong Province, is introducing digital yuan payments throughout its entire bus network.The city initially conducted a pilot phase by testing central bank digital currency (CBDC) payments on two bus lines. After a successful trial period, Jinan has now implemented the new payment method across all its bus routes. According to a recent report by local media outlet Shunwang-Jinan Daily, the city has updated its card readers and bus route software to facilitate digital yuan transactions for passengers.Photo by CHUTTERSNAP on UnsplashDiscounted faresTo encourage the use of the digital yuan, Jinan is offering fare discounts to passengers who opt for CBDC payments. The announcement stated that individuals could enjoy up to two discounted rides per day and a maximum of six discounted rides per month if they choose to pay with the digital yuan.The fare discounts offered for digital yuan payments serve as an incentive for passengers to adopt the new payment method. By enjoying discounted rides, individuals are encouraged to explore the benefits and convenience of using the digital yuan, further driving its adoption in everyday transactions.The acceptance of CBDC payments for bus rides in Jinan represents a significant step towards the integration of digital currencies into everyday transactions. As China continues to expand the use cases for the digital yuan, it is likely to pave the way for further adoption and exploration of CBDCs globally.Broader adoption strategyThis move aligns with the broader initiative in China to promote the adoption of the digital yuan. In April, the city of Changshu announced that it would begin paying civil servant salaries with the CBDC, including personnel at all levels of public service, public institutions, and state-owned units, starting from May.Furthermore, China has implemented its CBDC for various purposes, such as the Belt and Road initiative and cross-border trades. In Xuzhou, a city serving as a departure point for trains transporting goods to Europe, a plan was issued in April to promote the use of the CBDC in cross-border trade.Last month, e-CNY ATMs were introduced in the resort city of Sanya to enable foreign visitors to purchase the CBDC. In May, regional authorities in Jiangsu Province set about establishing use of the digital yuan within the region’s education system.On an international level, French bank BNP Paribas has partnered with the Bank of China (BOC) to facilitate the adoption of the digital yuan. This collaboration enables BNP Paribas’ corporate clients to connect with BOC’s system, allowing for real-time transactions using the digital yuan. The partnership advances China’s desire to bring the cross-border trade capabilities of the e-CNY into play on an international basis.As China continues to lead the way in CBDC implementation and explores new use cases, the digital yuan’s influence is expected to extend globally, transforming how we transact and interact with currencies in the digital age.

Chinese authorities have apprehended an individual suspected of identity forgery in connection with the StarkNet (STRK) airdrop. The suspect, identified as Lan Mou, allegedly assumed the identities of others to submit false Early Community Member Program (ECMP) airdrop forms. Through this scheme, the suspect claimed over 40,000 STRK tokens that originally belonged to the victims. After successfully claiming the tokens, the suspect transferred them to an OKX wallet. Subsequently, the tokens were converted into over $91,000 worth of Tether, as reported by local media on April 30. Lan Mou was apprehended by police in Guangdong Province on April 25. Authorities seized a computer and two mobile phones during the arrest.Photo by Tamara Gak on UnsplashUnprecedented scale of identity theftWhile cryptocurrency scams and phishing attacks are prevalent, the scale of identity theft observed in this case is unprecedented. The suspect's method involved claiming airdrops using stolen identities, marking a novel approach to fraudulent activity in the cryptocurrency space. A crypto airdrop is a method used to distribute new cryptocurrency tokens, typically targeting early users who engage with a specific protocol. In the case of the StarkNet Foundation's airdrop, which launched on Feb. 20, a total of 700 million STRK tokens were distributed to various participants, including Ethereum solo and liquid stakers, Starknet developers, users, external projects and developers within the Web3 ecosystem. Concerns raised by developerFollowing the StarkNet airdrop, concerns were raised by pseudonymous Yearn.finance developer Banteg regarding the eligibility criteria. Banteg warned that the eligibility list mainly consisted of airdrop squatters, individuals who exploit airdrop opportunities for financial gain. These individuals often control multiple addresses to maximize their rewards. This incident is not the first instance of airdrop exploitation. In March 2023, it was revealed that airdrop hunters consolidated $3.3 million worth of tokens from the Arbitrum (ARB) airdrop into just two wallets, highlighting the prevalence of such fraudulent activities within the cryptocurrency community. 

Indian Supreme Court Scolds Government over Crypto Regulation DelayThe Indian Supreme Court did not mince words recently as it criticized the Union government for its failure to establish clear cryptocurrency regulations in the country.Photo by Studio Art Smile on PexelsLack of crypto clarityThat’s according to a report published by local media outlet, the Hindustan Times, on Friday. It’s understood that the Supreme Court is frustrated with regard to the lack of guidelines surrounding cryptocurrencies. That frustration has arisen as crypto is increasingly coming to the attention of the courts due to it being associated with a rising number of criminal activities.The court directed the government to provide information about any plans to set up a dedicated federal agency to investigate crypto-related crimes. During the proceedings, Justices Surya Kant and Dipankar Datta expressed their disappointment, pointing out the absence of any concrete laws pertaining to cryptocurrencies.Crypto bill failingsThe context for the court’s remarks was the ongoing hearing of petitions related to cryptocurrency fraud cases across different states in India. In light of the gravity of these cases, the court demanded a response from the government regarding its capability to establish an effective mechanism to investigate crypto-related crimes.The struggle for clear and comprehensive crypto regulations in India has been long-standing. As far back as 2018, the government was instructed by the Supreme Court to draft a crypto bill, but progress has been slow. The government has continually promised to provide legislative clarity over the past few years. Despite this, the final draft of the crypto bill has not been produced.Crypto taxesGovernments may drag their feet when it comes to regulatory clarity relative to unfolding innovations but they’re far more responsive when it comes to taxes. The Indian government acted swiftly to impose crypto taxation laws, which took effect in April 2022.During that bull market period, India emerged as one of the leading crypto markets, witnessing the rise of several crypto unicorns and significant trading volumes amounting to billions of dollars. However, the introduction of tax laws had an adverse impact on the thriving crypto industry. Added to that, the lack of regulatory clarity caused many established firms to relocate from India, seeking more favorable environments for their operations.Market potentialDespite the government’s lethargic legislative response and heavy-handed tax policy, there are still reasons for optimism with regard to the development of crypto in India. India’s fintech sector is the third largest in the world, driven more recently by rapid digital adoption, together with efforts to bring about financial inclusion.Last month, Xapo Bank, a Gibraltar-based crypto bank, was sufficiently encouraged by the potential offered in India to enter the Indian market. Earlier this week, the world’s largest asset manager, BlackRock, announced that it was partnering with Jio Financial and re-entering the Indian market after a six-year hiatus.The move could have implications for crypto in India given that BlackRock has changed its tack on crypto, having recently filed an application to launch a bitcoin exchange-traded fund (ETF) in the United States.Notwithstanding these developments, concrete regulatory guidelines will not only protect against criminal activities but also foster a conducive environment for legitimate innovation and growth in the cryptocurrency space.