Investigation launched into prominent Chinese blockchain figure Yao Qian

The Financial Supervisory Commission (FSC) of Taiwan has disclosed its intention to introduce a fresh draft of digital asset regulations for the nation come September 2024. The forthcoming draft bill seeks to establish more robust regulations for digital asset markets, prioritizing investor safety, as announced by Huang Tien-mu, the chairman of FSC. That’s according to a March 4 report by local media outlet, United Daily News (UDN).Photo by Kelly Sikkema on UnsplashAddressing customer protectionIn October, Taiwanese legislators introduced the Virtual Asset Management Bill to parliament, a move aimed at fortifying customer protection and ensuring effective industry supervision. The bill encompasses provisions that could impose fines ranging from two million Taiwanese dollars ($63,000) to 20 million Taiwanese dollars on unlicensed virtual asset service providers (VASPs). Around that time, the authorities had a particular concern with regard to the operation of foreign and offshore VASPs within the Taiwanese market. Like Hong Kong, Taiwan also had seen some negative impact due to the fraudulent activity of the Dubai-based JPEX crypto platform.The FSC has already barred foreign VASPs from operating in Taiwan without requisite approvals from the regulator. These measures were instituted following the establishment of a self-regulatory association by major cryptocurrency exchanges in the country, aiming to foster collaboration with regulators. Stricter regulationsPer the latest report, Chairman Huang Tien-mu outlined the FSC's plan to propose a draft bill targeting virtual currencies in September of the current year. This initiative seeks to bolster investor safeguarding and enhance regulatory oversight over the virtual currency sector. Concern has also been raised relative to native exchanges, in addition to offshore VASPs. In November, an investigation was opened into the Bitgin exchange, amid alleged money laundering activity. Shortly afterwards, another probe was launched into the ACE Exchange, amid allegations of money laundering and fraud. Highlighting the imperative for stricter regulations, Huang underscored the potential fraud risks tied to digital currencies. He issued a stern warning, signaling severe administrative penalties for merchants engaged in fraudulent activities aimed at investors. Moreover, the regulator expressed concerns about the growing interconnection between digital assets and the conventional financial system. He emphasized the need for laws to shield the stability of traditional financial systems from the inherent risks posed by digital assets. Addressing apprehensions regarding the misuse of virtual currencies for fraudulent endeavors, Huang cautioned of stringent administrative penalties awaiting both domestic and foreign currency traders found guilty. ETF considerationsTaiwan's Chamber of Commerce is poised to unveil a study on Bitcoin exchange-traded funds (ETFs) in April. Gao Jingping, Deputy Director of the Securities and Futures Bureau at the Financial Supervisory Commission, indicated Taiwan's contemplation of endorsing spot Bitcoin ETFs under regulatory oversight. However, he advised against investing in foreign crypto-based exchange-traded products. Reports from local media in December suggested that the FSC will closely monitor Bitcoin ETFs to assess their potential and gauge public demand. The FSC intends to release research findings in April, which will influence the fate of Bitcoin ETFs in Taiwan. Positive findings may pave the way for Taiwanese investors to resume acquiring overseas Bitcoin ETFs. This initiative unfolds amid heightened global demand for Bitcoin ETFs, which recently contributed to Bitcoin's surge to almost $69,000.

BIS Collaborates with Singapore’s MAS, Bringing CBDC Pilot to a CloseThe Bank for International Settlements (BIS) has recently signified the culmination of Project Mariana, a pilot initiative centered on exploring the cross-border trading and settlement of wholesale central bank digital currencies (CBDCs).Photo by Pixabay on PexelsUpdating financial market infrastructureThe bank of central banks published the findings of the project on Thursday. Conceived in partnership with the Monetary Authority of Singapore (MAS) alongside the central banks of France and Switzerland, the endeavor could have profound implications for the future landscape of financial market infrastructure.Project Mariana, conducted under the patronage of the BIS, harnessed principles gathered from the emerging world of DeFi to probe the viability of employing automated market makers (AMMs) for CBDC trading and settlement.The project involved three key facets:DeFi Ingenuity: Project Mariana took inspiration and cues from the DeFi universe, particularly AAMs, to streamline foreign exchange trading and settlement. This approach was designed to bolster market efficiency while curtailing settlement risks.Cross-Border CBDC Transactions: Hypothetical wholesale versions of the Swiss franc, euro, and Singapore dollar in CBDC form were tested for cross-border trading and settlement. The central banks of France, Singapore, and Switzerland orchestrated simulated transactions via AAMs to gauge feasibility.Interoperability and Token Standards: The project showcased the practical application of a standardized technical token format offered by a public blockchain, enabling seamless interoperability across various currencies. This interoperability element played a pivotal role in facilitating cross-border CBDC transactions.While the project represents a significant move forward for the BIS in its consideration of decentralized technology, the organization is still mindful that these decentralized tools are in their infancy and in need of further scrutiny and experimentation.With that, the BIS Innovation Hub has outlined its intent to further explore the prospective advantages and obstacles associated with DeFi-infused solutions within pertinent use cases going forward.Proof of conceptWhile the BIS and participating central banks were happy with the outcome of the project, the exercise was still a proof of concept and doesn’t mean there will be any immediate adoption of CBDCs by the participating nations.Rather, it spotlights the potentials of CBDCs and DeFi in streamlining financial transactions and enhancing efficiency. Central banks can oversee wholesale CBDCs without necessarily exerting control over the underlying infrastructure, thereby furnishing commercial banks with a potent tool for instantaneous FX trading and settlement while simultaneously mitigating credit and settlement risks.The project also shone a spotlight on certain challenges, including the logistical intricacies arising from the 24/7 availability of wholesale CBDCs. Nevertheless, the manifold advantages of instant foreign exchange trading and settlement appear to outweigh these hurdles.Central bankers are likely to want a different outcome from the use of this technology by comparison with those who are currently knee-deep in building out DeFi. One commentator on X had a cynical take on the project, stating: “Intermediaries attempting to justify their existence in an age with bitcoin.”Notwithstanding that, FX is the largest financial market in the world, where $7.5 trillion in value is traded every day. To utilize DeFi technology in that context would likely be profound, regardless of the nature of the application of the technology.

Netmarble F&C, a subsidiary of South Korean game developer Netmarble, has taken action to lay off employees by notifying all 70 workers under its Metaverse World project to resign, according to industry sources on Friday (KST). Metaverse World, which had begun developing an IP-based metaverse platform, will be abandoned during an upcoming corporate reorganization process. Photo by julien Tromeur on UnsplashA brief journey from ambition to abandonmentMetaverse World was launched by Netmarble in 2022 by acquiring blockchain gaming platform ITAM Games and Web3 wallet developer Bono Technologies. It had been scheduled to hold a closed beta test last year, but no news of the development has resurfaced since then.  However, it was revealed today that the project will be abandoned during the corporate reorganization process. "We have been looking for a sustainable direction to take the project, but business conditions and market changes have pushed us to make the difficult decision to terminate the Metaverse World corporation, which was developing a metaverse platform,” a representative from the company disclosed. Fluctuating trendsThe metaverse first gained traction during the COVID-19 pandemic, when gatherings were limited to online spaces. Since then, the industry and other related technologies like Web3, blockchain and NFTs also garnered significant attention, with various companies snagging investments to fund their projects. However, as the attention of tech and investment firms has shifted to AI, these companies have increasingly found themselves in difficult positions. Last September, Com2Verse, the metaverse arm of content provider Com2uS Holdings', also began streamlining its workforce, organizing voluntary retirement and transition arrangements for its employees.