DeSpread partners with Arbitrum to build ecosystem for Korean developers

Coinbase Signals Interest in UAE BaseIn further evidence of a contrast in progression relative to the approach taken to digital assets in the United States versus other world regions, US crypto exchange Coinbase is understood to be considering the United Arab Emirates (UAE) as a potential strategic hub for the company.Photo by Aleksandar Pasaric on PexelsCause and effectA number of weeks ago, while Gary Gensler of the Securities of Exchange Commission (SEC) was facing a grilling in a House Financial Services Committee hearing on Capitol Hill in Washington, Brian Armstrong of Coinbase put out a statement saying that if the regulatory approach to crypto in the United States didn’t change, then the company would choose to locate itself elsewhere.It hasn’t taken Armstrong long to act on that intention. Late last month, the digital assets platform took its first step outside the United States by securing a license to operate in Bermuda. In line with Armstrong’s earlier comments, the move was seen as a strategic action taken by the company to expand its operations on a global basis.Armstrong had warned that unless regulators in the US provided complete regulatory clarity in relation to the activities of cryptocurrency firms, then the innovation would quickly develop in offshore havens. Alongside the announcement of the license to trade in Bermuda, a blog article was published which indicated that the company was also in discussion with regulators in Abu Dhabi in the UAE with a view towards potentially obtaining a license to operate there.Blog articleFast forward to Sunday, with the publication of yet another blog article by the company, and it seems that the company is hinting at a much stronger likelihood of establishing a UAE base. The article outlines that over the course of the next week, the Coinbase founder and CEO and the company’s executive team are in the UAE to participate in a round of meetings with regulators, industry partners, policymakers, clients and web3/crypto founders.The article outlines that Armstrong would give a keynote at the Dubai Fintech Summit, while elaborating that “the region has the potential to be a strategic hub for Coinbase, amplifying our efforts across the world.” In a recent interview with Bloomberg TV, the Coinbase CEO said that “we are looking for a home to set up an international hub that could serve the long tail of countries in the world.”At the Dubai Fintech Summit on Monday, Armstrong stated that the UAE “is leading the way regionally in crypto” and that it could be a potential international hub. He added: “I would say that the UAE’s approach has been more forward thinking than the US.”UAE crypto aspirationsThere’s no doubt that the UAE is trying to develop itself as a center for crypto and digital asset innovation. The country’s Prime Minister has said as much, declaring his intention to establish the Middle Eastern nation as a key player in the future of crypto. Both the Emirates of Dubai and Abu Dhabi have been proactive in working towards a digital asset regulatory framework, complete with a crypto licensing program in recent months.

Amid the heightened excitement about the potential incorporation of virtual assets into the traditional financial system, the Korea Exchange (KRX), the country’s only securities exchange operator, plans to run a pilot test on central bank digital currency (CBDC) transactions using distributed ledger technology (DLT). The pilot test is scheduled in the second half of this year, as part of KRX’s effort to respond to rapidly evolving financial technologies, Yonhap Infomax reported.  The KRX is targeting the carbon trading market for this pilot test, aiming to develop a DLT-driven carbon trading system. The objective of this initiative is to check the feasibility of applying the Delivery versus Payment (DVP) to carbon credit trading facilitated by dedicated tokens. The project will be undertaken in cooperation with the Bank of Korea (BOK), with whom the KRX signed a memorandum of understanding last year to forge digital financial infrastructure. Additionally, the exchange is planning to create a cloud-based settlement and payment system for brokerage and non-brokerage firms.Photo by Marcin Jozwiak on UnsplashLG CNS, an integrated security system provider, and Koscom, a financial IT company, will supervise the CBDC pilot program. They are tasked with conducting a comprehensive assessment of the entire process, from developing the decentralized ledger payment system to assuring its quality.  Broad application of DLTA DLT system records all transactions on a peer-to-peer network and verifies them through every participant. This eliminates the need for a central authority, thereby increasing its reliability and transparency. Currently, the DLT is of particular interest to many financial institutions worldwide, including the SIX Swiss Exchange. These financial institutions are actively experimenting with CBDC to improve the security and efficiency of their DVP settlements.  In particular, the carbon credit market is experiencing a significant integration with the DLT. A KRX official said that the exchange plans to test the maturity of DLT systems and the interoperability between the BOK’s network and those of other organizations. This will evaluate DLT’s effectiveness within the carbon credit market. The person added that this pilot test aims to establish technological standards regarding the CBDC payment and blockchain network registration, which will provide a critical reference for future technical experiments in the industry. 

Mox, a virtual bank in Hong Kong and a subsidiary of Standard Chartered, has introduced exchange-traded fund (ETF) trading for cryptocurrencies, marking a significant expansion into the digital asset space. The bank announced on Aug. 7 that it now offers its customers the ability to trade spot Bitcoin and Ether ETFs directly on its platform, making it the first virtual bank to do so.Photo by Florian Wehde on UnsplashExpanding crypto offeringsThe digital bank is also planning to broaden its cryptocurrency services. Future expansions may include direct purchasing and trading of cryptocurrencies in partnership with a licensed exchange. This move aligns with Hong Kong’s regulatory framework, which has been adjusting to accommodate and regulate crypto activities more robustly. Competitive pricing and user engagementMox is promoting itself as an economical choice for crypto ETF trading, with fees set at 0.12% of the transaction volume, with a minimum charge of 30 Hong Kong dollars ($3.85) for Hong Kong-listed spot and derivatives ETFs and $0.01 per share with a minimum of $5 for U.S.-listed derivatives ETFs. As of now, a local report reveals that 28% of Mox's customers engage in cryptocurrency investments, with 18% actively trading. The introduction of these ETFs is seen as a move to empower these customers to access emerging asset classes securely. Future aspirationsBarbaros Uygun, the CEO of Mox, expressed that the inclusion of crypto ETFs is part of the bank's broader strategy to set a global benchmark from Hong Kong. The bank aims to stay competitive by innovating and adapting to market changes. Jayant Bhatia, the bank’s chief product officer, hinted at more extensive plans in the crypto investment realm, although specifics on the timeline for launching broader crypto trading services were not disclosed. Despite the launch, the overall uptake of crypto ETFs in Hong Kong has been lukewarm. Bosera HashKey, ChinaAMC and Harvest Global, the issuers of the three spot ETFs in Hong Kong, have seen minimal activity with combined assets under management totaling just $236.3 million. The launch by Mox could potentially invigorate the market for crypto ETFs in Hong Kong as the region strives to become a leading hub for cryptocurrency in Asia.