Chinese authorities provide insight into conviction of RenrenBit founder

Kazakhstan achieves first retail payment with digital tengeBinur Zhalenov, Chairman of Kazakhstan’s National Payment Corporation (NPC), marked a historic moment at the XI Congress of Finance in Almaty on Wednesday by conducting the inaugural transaction with the country’s newly introduced Central Bank Digital Currency (CBDC), the digital tenge.Photo by J B on UnsplashDigital tenge debit cardThat’s according to a report published by local media outlet, Kapital.kz. Utilizing a debit card linked to the CBDC account, Zhalenov demonstrated the practicality of the digital tenge during his speech, showcasing its potential impact on the nation’s financial landscape.The official launch of the digital tenge on the retail market is expected to usher in a wave of development, with Zhalenov outlining that it will result in massive platform development in 2024. Collaborating with global giants Visa and Mastercard, as well as local banks, Kazakhstan aims to integrate the CBDC into plastic cards, enabling users to make digital tenge payments globally through platforms like Apple Pay and Samsung Pay.Eurasian Bank is one of the local banking participants in the project. Its CEO, Lyazzat Satiyeva, commented on the development:“Participation in the ‘Digital Tenge’ project opens up opportunities for launching innovative products for consumers and businesses using blockchain and cryptocurrency technology, developing a regulatory framework for digital assets and, in general, this is a big step in the development of a new digital economy in the country.”Meanwhile, Zhalenov emphasized the programmable capabilities of the digital tenge, envisioning its utilization in smart contracts, innovative financial services and digital asset transactions. Looking ahead, the CBDC’s development roadmap includes a focus on offline payments in 2024, with ambitions to incorporate the digital tenge into cross-border trade by 2025.The journey towards the digital tenge commenced in February 2023, with the NPC, established in September, spearheading the development and implementation of the CBDC. The launch of the NPC was likened to a restructuring of the Kazakhstan Center for Interbank Settlements. Its mandate includes overseeing interbank clearing services, managing digital identification and enabling money transfers.As Kazakhstan strides into the digital era, parallel measures have been taken to tighten oversight of the cryptocurrency market.‘Great Kazakh investment firewall’While the central Asian country may be progressing its CBDC, authorities in Kazakhstan appear to be taking a different approach to international crypto businesses operating within its borders. In September, reports surfaced of difficulties accessing major international crypto exchanges such as Coinbase and Kraken without a local license. Following this, local crypto mining operators addressed President Kassym-Jomart Tokayev in an open letter in October, urging a reconsideration of newly introduced tax rates on mining activities.Kazakhstan’s advancement of the digital tenge signals a transformative phase in the nation’s financial landscape, aligning with global trends in digital currency adoption. As the NPC continues its strategic development, the intersection of traditional finance and emerging digital assets in Kazakhstan is poised for further evolution.

Kyrgyzstan and Malaysia are advancing separate stablecoin initiatives, signaling a regional shift toward digital assets backed by tangible state reserves. While the projects differ in their underlying assets, gold in Kyrgyzstan and sovereign debt in Malaysia, both employ a hybrid model that combines public-sector oversight with private operational management.Photo by Zlaťáky.cz on UnsplashKyrgyzstan introduces gold-backed stablecoinOn Dec. 9, the Kyrgyz Republic’s state-owned OJSC Virtual Asset Issuer launched USDKG, a stablecoin pegged 1:1 to the U.S. dollar, according to a press release. The initial issuance comprises 50 million tokens, which the issuer says are fully backed by physical gold reserves. The project structure separates regulatory authority from asset management. While the issuer operates under the Ministry of Finance, management of the gold reserves has been contracted to a private company registered in the Central Asian nation. Officials say this arrangement distinguishes USDKG from a central bank digital currency (CBDC) and that the stablecoin is intended to operate alongside the national monetary system rather than compete with it. According to the statement, the token is currently issued on the Tron blockchain, with future support planned for Ethereum. The project cites an audit by ConsenSys Diligence and says it complies with Financial Action Task Force (FATF) standards, including identity verification for redemptions. The private operator aims to raise the reserves to $500 million in the next phase and later to $2 billion. Malaysia develops bond-backed tokenIn a parallel development, a Malaysian infrastructure firm with ties to the monarchy is preparing a ringgit-pegged stablecoin. According to Bloomberg, Bullish Aim is introducing the RMJDT token, which will be backed by Malaysian ringgit deposits and short-term government bonds. The company is owned by Ismail Ibrahim, son of Malaysia’s king. The token is designed to operate on Zetrix, a layer-1 blockchain developed by Malaysian firm Zetrix AI Bhd. The network currently supports the Malaysian Blockchain Infrastructure, a government-endorsed platform for digital public services and part of the country’s National Blockchain Roadmap. This places the stablecoin on the same technical foundation used for state-level digital identification and trade facilitation. Bullish Aim also intends to establish a digital-asset treasury (DAT), beginning with an investment of 500 million ringgit ($121 million) in Zetrix tokens. A DAT is a type of company that purchases and holds cryptocurrencies on its balance sheet. The initiatives in Kyrgyzstan and Malaysia suggest that stablecoin development in Asia may continue to evolve through state-anchored, asset-backed models. As each country tests its own approach to reserve management, issuance, and compliance, the next phases of both projects will offer early indications of how such frameworks perform in practice. 

Koscom, the technology subsidiary of the nation’s sole securities exchange operator Korea Exchange, has partnered with LG CNS, an information technology service provider, to launch a joint security token platform, according to a Koscom announcement. Task and tech allianceThe collaboration between Koscom and Korean conglomerate LG Group’s affiliate aims to gain a competitive advantage in the increasingly crowded security token market. On Monday, Koscom signed a memorandum of understanding with LG CNS in Seoul to form a task and technology alliance for security token projects.The partnership will combine Koscom’s expertise in building tech-based capital market infrastructure with LG CNS’s blockchain technology to produce fruitful outcomes. The joint project intends to provide distributed ledgers and a joint platform for the issuance and distribution of security tokens. Securities firms operating their own platforms can also choose to use its distributed ledgers. Koscom’s preparationSince last year, Koscom has been conducting research in security token offering and has formed a working group with eight securities firms that have their own security token teams. The working group has been hosting seminars regularly since the second half of last year, and on April 4, Koscom revealed its project plan to 25 other Korean securities firms. LG CNS’s readinessLG CNS has been conducting research and development of security token technologies since last year and has complied with the Korean regulatory framework. The company manages a consortium blockchain network and has completed the development of key technologies for security token services, such as highly secure wallets.Using its corporate blockchain platform Monachain, LG CNS has achieved success in developing multiple projects, such as a pilot for central bank digital currencies involving NH Bank and Woori Bank and a non-fungible token (NFT) trading system for Bithumb Meta, a subsidiary of the major Korean crypto exchange Bithumb.Meanwhile, Koscom will support security token projects of not only securities companies but also fractional investment firms and banks. Currently, Koscom is in talks with relevant entities about building infrastructure.