Indonesia sets out crypto exchange registration requirement

UAE researchers introduce carbon trading platform on blockchainAmid escalating climate concerns, the Technology Innovation Institute (TII) in Abu Dhabi has unveiled a blockchain designed to monitor carbon emissions and facilitate trading.Announcement during COP28The institute’s Cryptography Research Center (CRC) recently announced the launch of its proprietary blockchain-powered carbon trading platform, showcasing the United Arab Emirates’ (UAE) commitment to spearheading global climate initiatives. TII CEO Ray Johnson stated:“We are proud to announce this digitized tracking and trading platform at COP28, representing the UAE’s drive to become a technology and innovation powerhouse and its commitment to leading the world’s climate action agenda.”The revelation coincides with the United Nations Climate Change Conference (COP 28), which runs until Dec. 12 and is taking place in Dubai. The conference involves nations making commitments to reduce emissions and transition various sectors toward sustainable energy sources.Photo by Matthias Heyde on UnsplashEnabling carbon trading internationallyThe newly introduced blockchain platform is poised to enable the international trade of carbon tokens, monitor greenhouse projects and incentivize participation in emission reduction initiatives. By leveraging the principles of carbon trading and tracking, organizations will gain valuable insights into their environmental impact. The platform’s deployment on the blockchain ensures transparency and encourages broader participation, compelling major players to fulfill their environmental promises.The lightweight blockchain has been developed with minimal environmental impact in mind, aligning with the broader goals of the government’s climate action initiatives. This blockchain network allows organizations to record their emissions openly, prompting users to generate tokens that quantify carbon removed from company operations through capture or trading.Moreover, the network incorporates auditors to ensure the entire process is secure, transparent, accurate and safe. This approach aims to provide the industry with accurate data on their activities without relying on cumbersome third-party expert monitoring.Harnessing blockchain’s transparencyThe move to utilize blockchain technology for addressing climate change aligns with the long-standing belief of the United Nations and various international organizations. Blockchain’s transparency and openness empower industries to have accurate data on their activities, eliminating the need for complex third-party monitoring that often comes at a higher cost.In response to growing criticism of the energy consumption associated with blockchain technology, certain firms have taken steps to adopt greener practices. Notably, in 2021, the Ethereum blockchain transitioned to a Proof-of-Stake model, reducing its carbon footprint by over 99% by eliminating miners and introducing validators. Ethereum also launched the Ethereum Climate Platform (ECP), attracting participation from industry giants like Microsoft.Furthermore, cryptocurrency companies have allocated funds for solar-powered digital asset projects, encouraging developers to embrace eco-friendly practices. This shift towards sustainable initiatives underscores the industry’s commitment to addressing environmental concerns.In a related development, in August, it was reported that the UAE Ministry of Climate Change and Environment (MOCCAE) had entered into a collaboration with the Industrial Innovation Group and the Venom Foundation to work towards a blockchain-based carbon credit system.The introduction of the UAE’s blockchain-powered carbon trading platform marks a significant step towards fostering global climate initiatives. The innovative technology not only enhances transparency and accountability in carbon trading but also aligns with the broader global shift towards sustainable and eco-friendly practices within the blockchain industry.

OKX Burns $244M $OKB in Record Exchange Token Supply CutSeychelles-headquartered OKX, the world’s second largest cryptocurrency exchange, has conducted its largest-ever burn of its exchange token, $OKB, according to on-chain data.Approximately 5.5 million OKB tokens, equivalent to around $244 million, were removed from circulation. This record-breaking burn represents a significant milestone for OKX, surpassing the previous burns conducted since the monthly program’s inception.The burn was valued at approximately $258 million when calculated based on a 90-day average price, as reported by OKX. Chinese reporter Colin Wu highlighted that this burn marked another significant milestone in terms of the value of OKB tokens burned.Taking to Twitter on Thursday, Wu wrote: “The OKX exchange carried out the 20th OKB repurchase and burning on June 8, with a total of about 5.5 million OKB, or about 244 million US dollars, which once again set a new record for the value of OKB burning. OKX previously stated that it will burn OKX according to the seasonal market and operating performance, but has not disclosed the specific rules.”Photo by Jens Mahnke on PexelsBuy-Back & Burn program$OKB is described by OKX as a “global utility token issued by the OKX Blockchain Foundation,” offering holders various benefits such as discounts and exclusive access. The global exchange initiated the first Buy-Back & Burn program in May 2019. Since then, it has burned a total of 64,042,314.70 tokens as part of that ongoing burning process. Despite this significant development, the price of OKB has remained relatively stable, experiencing a slight increase of 0.29% on OKX. At the time of publication, the token was trading at a unit price of $44.97.Exchange token concernExchange tokens have recently garnered attention following the United States Securities and Exchange Commission’s (SEC) lawsuit against global crypto exchange Binance. The SEC has levied charges related to the sale of unregistered securities, resulting in a steep decline of nearly 15% in the value of Binance’s exchange token, BNB, over the past week.That scrutiny is likely to have followed the collapse of Bahamas-based cryptocurrency exchange FTX in November. At that time, it became apparent that the exchange was using its exchange token, $FTT, to prop up the business. FTX had issued $FTT tokens and used them as collateral, a dangerous act given that exchange tokens have no real-world asset backing and limited token utility.As the crypto market continues to face regulatory scrutiny and legal challenges, the burn of $OKB by OKX stands as a noteworthy event within the industry. The burn not only reduces the supply of $OKB tokens but also underscores OKX’s commitment to managing and enhancing the value of its exchange token. Market participants will undoubtedly monitor the implications of this burn and how it may influence OKB’s future performance in the evolving cryptocurrency landscape.Exchanges like OKX are likely to carefully manage the supply levels of exchange tokens, given market perceptions in relation to the extent of the utility of such tokens, the scrutiny of regulators, and the problems caused in over-extending supply in the case of other exchanges in the past.

The Need for Crypto Regulation Improvements in South KoreaAlthough the cryptocurrency market entered a bearish phase last year, there are prospects for growth as regulatory inclusion and market transparency begin to improve. However, the domestic market is currently hindered by deepening monopolies and inadequate support policies, limiting the development of the industry, said Kim Jin-won, Executive Director of Korean crypto exchange COREDAX, during a conference last Friday in Seoul.The conference, hosted by the Federation of Korean Industries, invited experts to discuss the oncoming era of convergence and the current status and challenges of virtual asset legislation in South Korea, as well as the necessary steps for improving regulations on virtual assets.Photo by Kanchanara on UnsplashGlobal decentralization trendsOverseas, various decentralized projects, such as the integration of blockchain technology into traditional financial markets, have led to the growth of related markets such as Bitcoin futures, decentralized finance (DeFi), over-the-counter (OTC) trading, custodial services, the metaverse, and Web3. However, in Korea, the lack of clear guidance or policy management for crypto businesses and services prevents the market from thriving.Countries like the US and Japan as well as the European Union (EU) are overhauling regulations in order to dominate the global industry and market through blockchain technology and virtual assets. Kim emphasized that Korea also needs to incorporate such flexible regulatory improvements considering the likely possibility that various industries are going to thrive on crypto-related businesses.Challenging existing regulations and calls for clarityHe started off by stating that the implicit regulation known as the “One Exchange, One Bank” principle was created for administrative convenience and is acting as a barrier to entry into the crypto industry. He argued that it is a discriminatory regulation, especially considering the fact that securities firms choose to operate stock trading accounts through multiple banks.Regarding the standards for issuing bank accounts under real names, which will be determined by the Financial Intelligence Unit (FIU), he argued that they are difficult to comply with, even for banks that already have contracts with crypto exchanges. He called for the FIU to express a clear stance on the retroactive application of these standards to avoid potential consequences such as barriers to market entry for late-movers.“The crypto market — including DeFi, non-fungible tokens (NFTs), artificial intelligence (AI), the metaverse, and Web3 — is growing at an annual average rate of 12.8%, and is expected to reach a scale of $4.9 billion by 2030,” he said. “When combined with Web3 innovation, the metaverse will evolve into a 3D platform business that incorporates the use of payment methods, NFTs, and virtual assets.”Promoting innovation in the crypto industryTo foster such industry growth, it is necessary to actively explore new types of services as well as potential challenges. Innovative financial services should also be designated or promoted through regulatory sandboxes. The regulatory sandbox is a system run by the Korean government that exempts or suspends existing regulations for a designated amount of time for companies releasing new products and services and regulates them post-mortem if there is a problem.Kim went on to propose specific measures such as negative regulations — regulations that outline what is prohibited by law while allowing everything else — to promote new industries. He also suggested that banks should be allowed to engage in custodial services for virtual assets.Furthermore, he highlighted the need for cooperation between payment companies and crypto firms. “Payment service providers like Visa and Mastercard are already collaborating with global crypto exchanges to incorporate virtual assets into their businesses,” he said. “With companies like Tesla, eBay, and more adopting or considering adopting cryptocurrency as a payment method, we must consider allowing collaborations between domestic credit card companies, payment gateway companies, and crypto firms.”He also urged for the early approval of initial exchange offerings (IEOs) to stimulate the crypto market and advocated for support policies for virtual asset service providers (VASPs). He cited examples such as brokering transactions for security tokens, allowing OTC trading, requesting security token issuance assessments through system integration with account management agencies, and permitting outsourcing for issuance operations.