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Blockchain Council Exec: Philippines Poised for Crypto AdoptionDonald Lim, the Founder of the Blockchain Council of the Philippines (BCP), believes that the country has all the necessary elements for mainstream crypto and blockchain adoption.In a recent interview with Cointelegraph, Lim discussed the potential for crypto adoption in the Philippines and explained why he is optimistic about the success of blockchain projects in the country.Photo by Krisia on PexelsFinding its place in blockchainAccording to Lim, the BCP recognized the global shift towards Web3 and organized the Philippine Blockchain Week to explore the ecosystem’s potential. That activity revealed to the organizers that the country has a vibrant community eager to find its place in the world of blockchain. Lim expressed confidence in the Philippines becoming the blockchain capital of Asia, citing the country’s technical expertise, young population with a median age of 25, and its ability to adapt quickly, as demonstrated by the popularity of the play-to-earn game Axie Infinity.Crypto interestAxie Infinity, a play-to-earn blockchain game, gained significant traction in the Philippines in 2021, with 40% of its player base coming from the country. This increased awareness of Web3 concepts and the creation of crypto wallets. Additionally, research carried out recently suggests the Filipinos are among the most interested in crypto in the region.Lim noted that international organizations have been eager to enter the Philippine market due to favorable demographics and the government’s open stance on crypto and blockchain. The executive emphasized that the government is not seeking to stifle innovation in the sector. On the contrary, it welcomes blockchain and Web3 projects, creating an environment conducive to their growth.Ethan Rose, founder of Pouch, a wallet service supporting the Bitcoin Lightning Network in the Philippines, corroborated this sentiment. Pouch has successfully onboarded over 400 businesses in the country to accept Bitcoin payments. While the onboarding of Filipino merchants into the crypto space is a positive step, Lim believes that it will take time before living solely on Bitcoin or crypto becomes a reality.Adoption inevitableHowever, he remains optimistic about the future, stating that it is only a matter of time before crypto adoption snowballs into something more significant.Lim highlighted the need for infrastructure development, expecting it to mature within the next four to five years. As the infrastructure improves, crypto will not only be used for payments but also for activities such as purchasing non-fungible tokens (NFTs) and participating in the metaverse. This comprehensive adoption will pave the way for a crypto-powered future in the Philippines.Philippine regulator, the Securities and Exchange Commission (SEC), recently delayed publication of its crypto regulatory framework. However, it appears that the move stems from an abundance of caution in getting the regulation right. Earlier this year, Robert De Guzman, Head of Legal Compliance at Philippines-based cryptocurrency exchange, Coins.ph, expressed his optimism that the authorities are developing a progressive regulatory framework for crypto in the Southeast Asian country.The Philippines shows promising potential for crypto and blockchain adoption, fueled by its young population, technical expertise, and supportive government. As the infrastructure continues to evolve, crypto adoption is expected to expand beyond payments, encompassing various aspects of the digital economy.

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.

An industry advocacy body for crypto and Web3 in India had urged the Indian government to take action against nine offshore exchanges, prompting the government to issue show cause notices and block URLs recently. Native industry pushbackAccording to CoinDesk, the publication has seen a copy of a letter that was sent in mid-December by the Bharat Web3 Association (BWA), addressed to the Indian Finance Ministry’s Department of Revenue Secretary, Sanjay Malhotra. The letter was penned by BWA Chairman Dilip Chenoy. Chenoy has been in the role since March of last year having a number of years of leadership experience within Indian industry bodies under his belt, with time spent previously as Secretary General of the Indian Chambers of Commerce and Industry and as Chairman of the board of Sant Longowal Institute of Engineering and Technology. According to its LinkedIn profile, the BWA seeks to “advocate for the collaboration between the regulatory bodies and the Industry for creating awareness about the new age technology and the emerging [Web3/crypto] asset class.” ‘Show cause’ noticesIt emerged last week that India’s Financial Intelligence Unit (FIU) had issued “compliance show-cause” notices to a number of overseas crypto platforms who have otherwise been active within the Indian market. The FIU is a national body tasked with liaising with and providing information to enforcement agencies where suspected illicit transactions are concerned. The offshore exchanges, including Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex, have been given a two-week deadline to respond to the show cause notice. This notice questions why regulatory actions should not be taken against them, aiming to ensure compliance with the country's financial regulations. It’s understood that the BWA's letter requested a one-month grace period for offshore exchanges to register with the FIU. It remains unclear whether the government's actions were solely prompted by the BWA's letter or if it would have taken place independently. Notably, the BWA's letter aligns with the government's earlier mandate in March, requiring crypto businesses to register with the FIU and adhere to anti-money laundering processes under the Prevention of Money Laundering Act (PMLA). Since then, 31 domestic entities have registered with the FIU. Photo by Peter Glaser on UnsplashEnsuring a fair gameThe BWA's letter also proposes that offshore exchanges establish an Indian subsidiary, deposit the applicable tax deducted at source (TDS) from July 1, 2022 and face restrictions, including potential access blocks on mobile app stores and IP addresses, for non-compliance. While it's unclear if all these requests feature in the show cause notices, the BWA emphasizes the need for fair competition. Rajagopal Menon, Vice President of leading Indian crypto exchange WazirX, stressed that “all we are asking for is a level playing field." The BWA's letter also urges the government to grant Indian retailers a 30-day window to withdraw assets before implementing any restrictions. The fledgling BWA industry body recently celebrated its first anniversary with its founding member, CoinSwitch founder Ashish Singhal, stating that he got involved with the BWA “to help build an effective regulatory framework for Web3 and digital assets in India.” Singhal added that the BWA’s mission is “to help India realize its vision to be the leading digital economy.”