IEEE to deploy skill certificates on blockchain for Indian members

While Pakistan’s Minister of State for Finance and Revenue stated back in 2023 that cryptocurrencies “will never be legalized in Pakistan,” recent events suggest that policy change is now likely.Photo by Hamid Roshaan on UnsplashAttracting foreign direct investmentIn an interview with Bloomberg TV on March 20, Bilal bin Saqib, CEO of the Pakistan Crypto Council (PCC), outlined that the South Asian country plans to move forward towards unbanning cryptocurrency within the country, while establishing a legal framework for such digital assets. The PCC itself was only established in February, with bin Saqib appointed as CEO earlier this month. The role of the PCC is to regulate and integrate blockchain technology and digital assets in Pakistan. The motivation for the proposed change in policy is a desire to attract foreign direct investment into Pakistan. The Trump effectWhen asked “why now,” bin Saqib said that “if [not] now, then never.” Expanding on that theme, he articulated that the return of U.S. President Donald Trump to office combined with his support of cryptocurrency, stands as a “bullish” catalyst for the global development of digital assets. He added: “Trump is essentially flipping the script. Trump signing an executive order instructing regulatory bodies to accommodate digital assets, forming the White House crypto advisory team, creating the U.S. strategic Bitcoin reserve,” . . . “that means that the largest economy in the world is creating it like a valuable national asset.” bin Saqib told Bloomberg that Pakistan is done with sitting on the sidelines and that the country now wants to achieve regulatory clarity on behalf of participants in the crypto sector within the country. He added that there’s a need to establish a legal framework that is pro-business. He added: “We want Pakistan as the leader in blockchain-powered finance, and we want to attract international investment.” Policy u-turnThis new stance on crypto stands in stark contrast to Pakistan’s previous position on cryptocurrencies. The country’s central bank, the State Bank of Pakistan, has warned investors of the risks of dealing in cryptocurrencies on a number of occasions previously, highlighting the fact that no entity is licensed within Pakistan to offer remittance services that implicate crypto tokens.  Earlier this month, bin Saqib outlined that Pakistan is investigating the use of blockchain technology to streamline remittances. The South Asian nation ranks within the top 10 countries in terms of total value remitted each year. At that time, he also confirmed to CoinDesk that Pakistan is exploring real-world asset (RWA) tokenization initiatives.  A report by Chainalysis in 2023 stated that Pakistan is “a world leader in grassroots cryptocurrency adoption.” Wealth preservation was identified as one catalyst for crypto adoption, given that the country has faced high inflation rates in recent years and a devaluation of its sovereign currency. That has led to stablecoins being popular despite a ban being in place on cryptocurrencies all the while. In taking matters forward from this point, bin Saqib said that the PCC is keen to learn from the experiences of jurisdictions such as the United Arab Emirates (UAE), Nigeria, Turkey, Singapore and Hong Kong in determining how best to formulate a pro-business regulatory framework for digital assets in Pakistan. 

Experts Discuss Korean Security Token MarketSince the Korean financial regulator released regulatory guidelines on security tokens in February, many have anticipated that the introduction of security tokens would transform the concept of investment and give rise to new market strategies based on blockchain technology.©Pexels/PixabayIndustry professionals have expressed their opinions on the matter in interviews with media outlets.Token issuance and distributionPark Hyo-jin, vice president at Sejong Telecom, in a recent interview with Korean media outlet Digital Today, expressed his disappointment about the Korean government’s decision to separate token issuance from token distribution. Sejong Telecom is the developer and operator of the blockchain-based real estate fractional investment platform Bbric.According to Park, the capital market law separates token issuance from token distribution in order to prevent conflicts of interest, as interested parties may attempt to control financial products according to their own preferences. However, things are different with security tokens, Park believes. With the help of blockchain technology, a mainnet can issue and distribute tokens without intermediaries.Higher investment limitsPark emphasized the importance of increasing investment limits and cited the small size of the Korea New Exchange (KONEX), a stock exchange for small enterprises, as a reason for its lack of activity. He added that higher caps would result in positive ripple effects.Regarding real estate security tokens, Park doesn’t expect more profitable products, but sees that more investment choices will be available. He is particularly interested in investment contract securities. One such example is renting a piece of land to farmers to distribute harvest profits.Connection with virtual assetsThe security token market will face limitations if it’s not connected with its virtual asset counterpart. He mentioned the need for a digital asset law to create an ecosystem that links security tokens with virtual assets.Meanwhile, in an interview with Economic Review, Lee Kun-ho, former CEO of KB Kookmin Bank, showed a somewhat pessimistic view about the Korean security token market while admitting its potential.Various uncertaintiesIn his opinion, while real estate holds potential as a security token investment, government policies may introduce uncertainties. Likewise, the markets for music and artwork are also subject to unpredictability. Consequently, security token strategies in these areas could encounter limitations.Lee also sees that some of the services don’t necessitate blockchain technology. It is unlikely that any clear winners will emerge in the short term; therefore, it is vital for the industry to approach this issue with prudence, he added.

Bitget Claims Debt-Free Status via Proof of ReservesBitget, the Seychelles-based cryptocurrency derivatives exchange, proudly announced that its total proof-of-reserves ratio has reached an impressive 223% in its latest report.Photo by Traxer on UnsplashReserve of $1.44 billionIn a press release published to its website on Thursday, the exchange revealed that it currently holds a reserve of $1.44 billion, encompassing 31 different crypto assets. The reserve ratios for popular cryptocurrencies such as Bitcoin (BTC), Tether (USDT), Ether, and USDC stand at 454%, 135%, 171%, and a staggering 2,604%, respectively.Bitget executives, in an interview with Cointelegraph, emphasized the exchange’s commitment to operating without relying on debt or user funds for transactions or investments. They stated that the company is debt-free and has no outstanding liabilities, nor is it listed as a creditor for any recently bankrupt companies.When questioned about the high collateralization for certain coins, the exchange clarified that the funds originate from profits generated through transaction fees and returns from investments and acquisitions. While Bitget does not have external insurance for its users, it maintains a robust $300 million User Protection Fund.Executives assert that this fund operates more effectively than third-party insurance, enabling them to efficiently safeguard users’ assets without being dependent on external bureaucracy or policy changes.Partnering with third-party auditorsAlthough not yet a regulatory requirement, Bitget aims to enhance transparency by increasing partnerships with third-party auditors to thoroughly examine its assets and reserves. The exchange diligently updates its proof-of-reserves every month, further reinforcing its commitment to accountability and trustworthiness.While proof-of-reserves has gained popularity as a means of disclosing information about exchange assets, experts have cautioned about its effectiveness. Jack Graves, a professor of law at Syracuse University, highlights the challenges in determining the portion of assets pledged as collateral unless one has access to an exchange’s financial services, books, and records.Bitget’s remarkable proof-of-reserves ratio and its commitment to being debt-free demonstrate a greater focus on behalf of cryptocurrency exchanges in providing the crypto trading public with an enhanced level of information relative to the real-time financial position of the exchange.Crypto loansThe move is significant and much needed, following a dreadful 2022 for crypto consumers that saw many of them lose funds due to a complete lack of transparency with regard to funds held on deposit on behalf of customers. That period saw the collapse of platforms such as Celsius, FTX, Voyager, BlockFi, and others as a direct consequence of the mismanagement of user funds.It’s interesting too, that most of the platform failures involved crypto lenders, a space that Bitget recently announced that it was entering. Earlier this month, the company outlined that it would begin to offer crypto lending products to meet a need from users who are seeking alternative funding solutions, backed by digital assets.By diligently managing its funds and actively seeking audits, Bitget is making an effort to foster trust within the cryptocurrency community and ensure the safety of users’ assets.