ClayStack expands into Ethereum restaking ahead of token launch

Infinite Block Selected For Tech Startup Incubator ProgramSouth Korean blockchain fintech company Infinite Block announced Monday that it has been selected to participate in the Tech Incubator Program for Startups (TIPS) program.“Being selected for TIPS as the first domestic custodial services company to do so carries significant importance, as it acknowledges our technological capabilities and business viability on an international scale,” said the company’s CEO Jeong Gu-tae.Photo by Mimi Thian on UnsplashPaving the way for an innovative futureTIPS is a private investment-led technology entrepreneurship program organized by the Korea Business Angels Association and Korea Institute of Startup and Entrepreneurship Development (KISED) — two affiliated institutions under the Ministry of SMEs and Startups — to foster startups that possess innovative technology.The program appoints and designates venture founders to serve as angel investors and leaders of technological enterprises as a given startup’s incubator and/or accelerator. Throughout the two-year duration of the program, the startups can take advantage of angel investor networking and mentoring and receive KRW 500 million (approximately $370,000) in research and development (R&D) funding from the government. They can also receive an additional KRW 200 million in commercialization funds.Infinite Block, which specializes in custody services tailored to corporate-owned virtual assets, was selected for TIPS by attracting investment from the fintech innovation fund operated by venture company Infobank. This is part of a series of strategic investments that it secured within just six months of its establishment, including those from leading domestic financial institutions like banks and securities companies.Pioneering fintech developmentThe company has consistently been boosting efforts to expand into a prominent fintech platform, starting by receiving approval from Korea’s Financial Services Commission (FSC) to become a virtual asset service provider (VASP) and later on obtaining ISO 27001 certification for the information security management system of its blockchain platform. More recently, it launched a custody-based Ethereum staking service for corporate clients.“We will strive to provide trustworthy digital asset infrastructure by implementing a fintech platform that not only offers innovation through blockchain and cyber security technology but also meets regulatory requirements assigned by financial authorities,” Jeong stated.

China’s Jiangsu Province Integrates Digital Yuan Into Education SystemChina has taken a raft of measures to try to build momentum in its digital currency, the digital yuan or e-CNY, with the latest step being an expansion into the education system in Jiangsu Province.Photo by Kimberly Farmer on UnsplashChina’s digital yuan is a legal tender fully backed by the People’s Bank of China (PBOC) and pegged to the renminbi. Unlike most cryptocurrencies, it is not decentralized or anonymous but is monitored by the PBOC. While adoption has been slow, China has been first off the blocks in developing a central bank digital currency (CBDC) to the point of some level of active use by comparison with its international peers.Enforcing a payments use caseJiangsu Province will attempt to establish the use of the digital yuan in its education system by the end of 2025, according to the Jiangsu Education Department. By the end of the year, students studying within the province are likely to be paying tuition fees using the digital currency. The pilot plan that Jiangsu administrators within the province’s Education Department have put together also aims to establish a means through which examination registration fees will be paid in digital yuan, while scholarships will be received in the digital currency.Zhou Maohua, a researcher with Beijing-headquartered Everbright Bank, told China Daily that it is imperative that more users are registered and go on to actively use the digital yuan to further its development.“The establishment of infrastructure for the digital yuan should be further accelerated,” said Maohua. “Its software and hardware must be upgraded to improve user experience. The security and reliability of the system must also be strengthened,” he added.Over the course of the past three months, four million digital yuan accounts have been opened by ordinary citizens within Jiangsu Province. Total e-CNY transactions have reached a level in excess of 200 billion yuan ($29 billion).Multiple initiativesIn April, the administrators of the city of Changshu, which is situated within Jiangsu Province, announced that it was gearing up to commence paying state employees within the city in digital yuan. Around the same time, officials within the city of Xuzhou, also located within Jiangsu Province, announced that they were in the process of publishing a pilot scheme which will set out a means for promoting China’s e-CNY digital currency.If that was enough in proving Jiangsu’s commitment to furthering the development of the e-CNY, another Jiangsu Province city, Suzhou, was one of the first locations in China to run a digital yuan pilot scheme in April 2020.Earlier this month, it was revealed that the French international banking group, BNP Paribas, had partnered with the BOC in enabling an initiative to promote the use of the digital yuan among its corporate clients.China is working with other countries on a Multiple CBDC Bridge project to explore the feasibility of cross-border fund transfers among different currencies. Launching its own CBDC for cross-border transfers may allow China to reduce its reliance on the US dollar and increase its influence over global trade and monetary policy.

Kazakhstan setback for Coinbase as government blocks website accessIn alignment with the Law on Digital Assets legislation which was enacted in February, Kazakhstan’s Ministry of Culture and Information has officially confirmed that access to the Coinbase website has been blocked within the country.The development follows the enforcement of regulations prohibiting the issuance and trading of unsecured digital currencies, according to local news media.Photo by Kai Pilger on UnsplashAccusation of regulatory violationThe authorities in Kazakhstan initiated the blocking of local IP addresses from accessing Coinbase as early as September. The action was taken in response to a request from the Ministry of Digital Development. The Ministry of Digital Development accused Coinbase of violating the Law on Digital Assets, resulting in the restriction of access to the platform.The Law on Digital Assets, introduced earlier in 2023, stipulates that the issuance and circulation of unsecured digital assets are prohibited. The exception to this rule is within the Astana International Financial Center (AIFC), a designated economic zone in Kazakhstan. Permits to operate crypto trading platforms within the AIFC are issued by the Astana Financial Services Authority (AFSA).Several cryptocurrency exchanges have already received approval from the AFSA. Notable names among these approved exchanges include Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit and Xignal&MT.Reports of access issues to the Coinbase website initially emerged in September, with the local Telegram media outlet Finance.kz referring to it as the “great Kazakh investment firewall.” This firewall was not limited to Coinbase. It also affected access to other major international crypto exchanges such as Kraken.Stringent regulationKazakhstan’s approach to crypto regulation has been notably stringent, particularly concerning its significant mining sector, which ranks among the world’s largest. In October, eight leading cryptocurrency mining operators wrote an open letter to President Kassym-Jomart Tokayev, expressing concerns about the challenging conditions faced by the crypto-mining industry.Those entities included BCD Company, TT Tech Limited, Green Power Solution, Kinur Invest, KZ Systems, AI Solutions and VerCom. High energy prices for miners were cited as a significant issue, leading to what was described as a “very distressful situation” in the sector.Mining got off on the wrong footing in Kazakhstan. Following the banning of crypto mining activities in China in May 2021, there was a sudden influx of miners into Kazakhstan. As that development wasn’t planned for, it led to major stresses being placed on the country’s electricity grid. As a consequence, blackouts occurred.While this development in Kazakhstan is unwelcome news for Coinbase, the company has experienced more positive outcomes elsewhere. Last week it emerged that the U.S. crypto exchange had outperformed Q3 revenue estimates. That said, it also emerged that the exchange’s trading volumes had declined for the second consecutive quarter in a row.Kazakhstan’s move to block Coinbase access underlines the country’s determination to enforce its digital asset regulations, contributing to a growing trend of governments worldwide seeking to bring crypto-related activities under regulatory oversight.