Spot bitcoin ETF approval triggers surge and shift in Korean crypto exchange performances

UAE Issues New Guidance on Crypto AML MeasuresUnder new guidance issued by the Central Bank of the United Arab Emirates (UAE), crypto businesses will be subject to strengthened anti-money laundering (AML) and countering the financing of terrorism (CFT) measures.Photo by Joshua Miranda on PexelsTightening AML regulationThe guidance, first compiled in February but released on Wednesday, which takes into account the recommendations of the Financial Action Task Force (FATF), has been introduced to enhance the supervisory and regulatory frameworks and combat financial crimes. The rules are set to come into effect within a month.The Central Bank’s guidance specifically targets Licensed Financial Institutions (LFIs) in the UAE, encompassing banks, finance companies, exchange houses, payment service providers, registered hawala providers, insurance companies, agents, and brokers. These entities will now be required to comply with the new regulations to prevent money laundering and terrorism financing activities.Firm foundationsIn a written statement, His Excellency Khaled Mohamed Balama, Governor of the UAEs Central Bank, expressed the importance of the new guidance in strengthening efforts to combat financial crimes. He emphasized the commitment to protecting the financial and monetary system’s soundness and stability, aligning with the FATF standards.The issuance of the guidance comes as the UAE aims to attract crypto businesses to the region by offering a welcoming but effective regulatory framework. In March, Dubai unveiled a dedicated agency responsible for virtual asset regulation, signaling its commitment to fostering a favorable environment for crypto-related activities. Its Virtual Assets Regulatory Authority (VARA) has also taken action against what it deems to be unregulated activity in the crypto space recently.That action together with the approaches taken by Abu Dhabi and at a national level the UAE itself with respect to digital asset licensing is indicative of a territory that is setting out the right foundation upon which to develop the innovative sector. The approach taken by regulators in the UAE has garnered praise from major crypto firms, including Coinbase, who have applauded the region’s proactive stance on regulation.The strengthened regulatory framework is expected to contribute significantly to the UAE’s ongoing efforts to prevent money laundering and the financing of terrorism. By implementing these measures, the UAE aims to safeguard the integrity and stability of its financial and monetary systems while fostering a secure environment for crypto businesses to thrive.Global regulatory effortsThe UAE’s AML guidance comes amid ongoing efforts globally to come to terms with virtual assets. Tomorrow Japan will implement its adherence to the FATF travel rule regulation relative to digital assets. Crypto businesses like bitFlyer are already adjusting to that eventuality, while also implementing a similar standard in international markets.As the UAE continues to position itself as a leading hub for the crypto industry, the introduction of these new AML rules demonstrates its proactive approach to regulation. The collaboration between the Central Bank and other global regulatory bodies, such as the FATF, showcases the UAE’s commitment to international cooperation and the sharing of knowledge and best practices in the ever-evolving crypto landscape.

SBI Digital Asset Holdings (SBI DAH) has unveiled a new joint venture with Chiliz, geared towards introducing soccer club fan tokens to Japan.  Bringing a fan engagement token offering to JapanThese tokens, operating under the Socios fan engagement brand, encompass soccer clubs such as Arsenal, AC Milan, Manchester City, FC Barcelona, Inter Milan and Paris Saint-Germain. Both companies outlined to The Block in a joint statement that the purpose of the joint venture is to provide local sports fans in Japan with access to tokens associated with these high profile soccer clubs.Photo by Konstantin Evdokimov on UnsplashAlongside this collaboration, SBI DAH intends to establish a node on the Chiliz Chain. Notably, over 2 million users have already engaged with the Socios fan tokens, signifying a burgeoning interest in this space. Rather than depend upon non-fungible tokens Chiliz relies upon fan tokens, representing a distinct category. They're fungible, akin to tracking stocks, facilitating fan engagement through voting, competitions, VIP experiences, merchandise and exclusive offers.  In Japan, private investors traditionally exhibit more active engagement with companies, often receiving incentives such as discount coupons, gift cards, points and memberships. While fan tokens don't confer ownership rights in the clubs, they offer similar avenues for engagement.  Fernando Luis Vázquez Cao, CEO of SBI DAH, highlighted the importance of technology in enhancing community experiences, expressing enthusiasm for collaborating with industry leaders like Chiliz to introduce novel experiences to the Japanese audience. Vázquez Cao stated:”The partnership between SBI DAH and Chiliz will bring together the best-in-class capabilities of both traditional finance and Web3, leveraging fintech innovations to transform the sports and entertainment experiences for communities.” The recent transition of the Chiliz blockchain from a Proof of Authority (PoA) to a Proof of Staked Authority (PoSA) version marks a significant step forward, attracting node operators like Paris Saint Germain and enhancing the network's capabilities. PoSA is a hybrid consensus algorithm that enables faster block times and reduced transaction costs. Additional partnershipsIn addition to its collaboration with Chiliz, SBI DAH boasts a diverse portfolio of blockchain interests, spanning initiatives such as AsiaNext, SBI Digital Markets and crypto custodian Zodia Custody. Many crypto projects have partnered with the company as a means to gain access to the Japanese market. One of the most recent examples is its partnership with USDC stablecoin issuer Circle.  The objective of that partnership has been to expand the circulation of stablecoins in Japan, but particularly USDC. Moreover, SBI DAH has made strategic investments in prominent players like Swiss digital asset bank Sygnum, Blockdaemon and the Tangem wallet. SBI Holdings, the parent company of SBI DAH, similarly maintains an extensive involvement in blockchain investments and activities.  In tackling the Japanese market, Chiliz will have to contend with a local competitor in the form of FiNANCiE. It has emerged to fill a similar role, fostering relationships with domestic sports teams, including J-League soccer clubs. By contrast,  Chiliz has provided broader international exposure. International competitors include Sorare and Dapper Labs, which concentrate on NFTs.

e-CNY Payments Enabled for Hong Kong Visitors From Mainland ChinaBank of China’s Hong Kong arm recently launched a digital yuan shopping festival, aiming to spur local consumption and promote the adoption of central bank digital currencies (CBDCs). The festival, which commenced on July 18, allows visitors from mainland China to make purchases in Hong Kong using the digital yuan.Bank of China (Hong Kong) Limited (BOCHK), a subsidiary of China’s central bank, initiated trials of e-CNY cross-border payments in Hong Kong last year, paving the way for the current shopping festival.Photo by Eric Prouzet on UnsplashSubsidized useAccording to a press release published by BOCHK earlier this week, as of July 18, digital yuan wallet holders have been able to use China’s CBDC to make payments at over 200 participating merchants across Hong Kong. Furthermore, consumers have the opportunity to receive shopping subsidies in digital yuan by scanning QR codes at specific stores, as stated in the BOCHK press release.The range of merchants accepting e-CNY payments spans from electronics sellers and pharmacies to supermarkets. Among the participants is U Select, a Hong Kong-based supermarket chain with a wide presence of more than 90 stores throughout the city.BOCHK strategically chose the summer tourist season for the expansion of e-CNY payments in Hong Kong. Chen Guang, representing BOCHK, mentioned the influx of tourists to the special administrative region, presenting a prime opportunity to attract more users and bolster local consumption through this cross-border shopping festival.The move makes BOCHK the first institution to partake in the cross-border e-CNY trial in Hong Kong. In December 2022, the bank initiated the first phase of its “digital yuan exclusive experience,” which allowed a limited number of BOCHK consumers to shop in the city using the digital yuan.Adoption strategyThe digital yuan has witnessed robust adoption in recent times, with China leading the global development of CBDCs. The Bank of China has been actively striving to advance and popularize the use of digital yuan in the country. Various initiatives, including business loans, trial expansions, and partnerships with prominent technology firms, have been undertaken to propel the widespread adoption of the digital currency.The introduction of the digital yuan shopping festival in Hong Kong signifies yet another significant step in China’s efforts to promote its CBDC and drive its usage in both domestic and international transactions. With over 200 merchants already participating and a seamless payment experience for tourists, the festival has the potential to encourage further adoption and shape the future of digital payments in the region.As this initiative gains momentum, it will be crucial to observe its impact on local consumption and the broader implications for CBDC adoption in the global financial landscape.The rate of China’s CBDC development and beyond that, the intent with which it is striving to drive adoption through a seemingly never-ending series of initiatives has been unmatched by any other nation. With that, the first real results of the active and widespread use of a CBDC are going to come from the country that makes up one-fifth of the world economy.