Putin approves inclusion of digital ruble within Russian tax code

Hong Kong Setting High Bar on Crypto RulesLucy Gazmararian, a Fintech Advisory Group member of Hong Kong’s Securities and Futures Commission (SFC) and founder of crypto venture firm Token Bay Capital has said that the standards for Virtual Asset Service Providers (VASPs) in Hong Kong are incredibly high.©Pexels/Brayden LawThe Securities and Futures Commission (SFC) has established these strict guidelines as they want the crypto industry to adhere to the same compliance standards as traditional financial firms.Gazmararian made the comments in discussion with Cointelegraph on the fringes of the Hong Kong WOW Summit. Although the bar is set high, Gazmararian maintains that it is not without good reason. The SFC’s approach is to ask VASPs to apply the same standards that existing financial institutions such as huge banks and asset managers must comply with.Short term challengesAccording to a consultation paper released by the SFC on February 20th, licensed VASPs may serve retail investors, but the standard of investor protection measures imposed needs to be considered. Additionally, Anti-Money Laundering (AML) and Know Your Customer (KYC) policies were also discussed.While these high standards may benefit the industry in the long run, Gazmararian believes they may pose challenges for the crypto industry in Hong Kong over the short term. She explained that many crypto businesses are in the startup phase and have funding but not huge amounts. Therefore, complying with the framework may incur significant costs. Gazmararian mentioned the need for local VASPs to have insurance, independent assessment reports, and store crypto in cold storage. It is important to note that these costs may prevent some startups from entering the market, which may have consequences on the industry’s growth in Hong Kong.The Token Bay Capital founder believes that with a solid regulatory framework in place, more well-capitalized financial firms will be willing to help promising startups get off the ground. In her opinion, the companies that receive a license will be upholding the most stringent standards.Ambitions to be global crypto hubThe SFC has encouraged individuals, corporations, and crypto firms to review the 361-page consultation paper and provide feedback. The securities regulator wants these entities to share their views and point to things that may have been missed. According to Gazmararian, the SFC is “absolutely focused” on getting everything right, so they are seeking input from a wide range of sources.Submissions for feedback on the consultation paper closed on March 31. Hong Kong has made significant strides in recent months to establish itself as the world’s next crypto hub. According to a March 20 statement by the Secretary for Financial Services and the Treasury, Christian Hui, more than 80 digital asset firms have expressed interest in establishing a presence in Hong Kong over the last few months. This interest is a testament to the growing importance of the crypto industry and the favorable environment that Hong Kong is creating for its growth.

Report: Vietnamese Crypto Investors Rely Heavily on ReferralsWhile Vietnam has been leading the way in terms of cryptocurrency adoption among ordinary people, the decision-making process of Vietnamese crypto holders also sets them apart, according to a new report.The report, a collaboration between Vietnamese venture capital firms Kyros Ventures and Coin68, in association with Hong Kong-based Web3 firm Animoca Brands, reveals a striking trend. 76% of Vietnamese crypto holders base their investment choices on recommendations from friends and acquaintances.Photo by Silver Ringvee on UnsplashThe importance of referralsReleased on Wednesday, the report relied upon a survey involving 3,300 participants. A staggering 75.5% of respondents admitted that their crypto investment decisions were significantly “influenced by recommendations or referrals.” This figure stands at 2.5 times the equivalent percentage reported in the United States.Aside from word of mouth, Vietnamese crypto investors rely heavily on self-study, community groups, and media news as primary sources of information relative to crypto. Nearly 50% of survey participants indicated their reliance on these methods for staying informed about the crypto market.Market sentimentThe “Vietnam Cryptocurrency Market Report” for the first half of 2023 also sheds light on the sentiments of the crypto community. It indicates that 70% of survey participants believed that the bear market has already concluded or is approaching its end.Notwithstanding that, another data point could be interpreted such that market participants are still exercising an abundance of caution. Around 60% of respondents confirmed that they hold stablecoins as a significant constituent of their portfolios. Stablecoins are widely used by traders when exercising risk-off positioning.Interestingly, another finding of the report is the fact that an overwhelming 75% of respondents expressed a desire for increased regulatory intervention within the crypto sector. It’s unlikely that this is coincidental, given the number of high-profile crypto platform failures that took place in 2022.Vietnam leading adoptionChainalysis data confirms Vietnam’s dominant position globally in terms of crypto adoption and its impressive second-place ranking in decentralized finance (DeFi) adoption. Remarkably, more than 19% of adults in Vietnam own digital assets while Vietnam ranks among the top five countries when it comes to trading volume on global crypto platform Binance.However, this level of adoption stands in contrast with the limited educational infrastructure supporting it. Only nine educational institutions in the country offer blockchain courses.The survey also probed into user behavior within various crypto domains. The findings show a significant engagement in DeFi activities, with nearly 90% of respondents participating. By the end of 2022, there were in excess of 200 active blockchain projects in operation within Vietnam.GameFi, non-fungible tokens (NFTs), centralized finance (CeFi), and SocialFi are also popular among the Vietnamese crypto community, with engagement rates of between 55% and 91%. The research also found that users maintain a balanced preference between centralized and decentralized exchanges.The report concludes by highlighting the rapidly evolving local tech landscape and its synchronization with global trends. Largely, the report points to a positive sentiment in Vietnam relative to the future of cryptocurrency and Web3 innovation in the country.

Rotonda launches crypto wallet service Burrito Wallet in Latin AmericaRotonda, a subsidiary of South Korean crypto exchange Bithumb and the operator of the digital wallet Burrito Wallet, announced on Tuesday (local time) that it has launched its services in the Latin American region, marking its entry into global markets.Photo by Leon Overweel on UnsplashLaunched in February, Burrito Wallet’s primary functions include convenient chat-based cryptocurrency transfers and crypto swapping. It is the largest multi-chain wallet in Korea that supports 11 mainnets, including Bitcoin and Ethereum, as well as over 1,000 token currencies.Expanding region-specific servicesIn addition to these basic services, the Burrito Wallet’s available services in Latin America will include both on- and off-ramp functions for buying and selling crypto, which will be added by the end of this year. An on-ramp function facilitates users in acquiring crypto assets, whereas an off-ramp facilitates users in disposing of their crypto assets. Considering that many countries in the region recognize cryptocurrencies as fiat currencies, the company plans to expand its services to meet the market demand. Furthermore, the company aims to secure users by providing transfer services and various airdrop events.“The greatest advantage of Bithumb Burrito Wallet is the ability to use various functions such as cryptocurrency storage, management, transfers and swapping all in one platform,” explained Burrito Wallet’s Chief Financial Officer Chung Jae-kwon. Jeong recently visited Colombia last month to introduce the wallet service. “We believe that we can respond to the specific demands of the financial environment in Latin America through our user-friendly wallet service,” he added.Addressing economic challengesThe blockchain market in Latin America has been growing rapidly with rising demand for convenient and secure crypto services, driven by low accessibility to traditional finance and unstable economic conditions such as inflation.“As the global financial crisis worsens due to a lack of liquidity in banks, the need for financial instruments that can safely protect assets is increasing,” Chung said. “We anticipate a growing demand for our non-custodial wallet, which allows users to hold their own private wallet keys.”Earlier this month, Burrito Wallet signed a business agreement with the blockchain gaming platform Yooldo to expand their respective blockchain ecosystems and secure a global user base.