Circle moves towards further APAC expansion via MHC Digital partnership

Zetrix, a layer-1 blockchain project for real-world applications, has launched an electronic Know Your Customer (KYC) verification product for Chinese nationals. The Malaysian enterprise, which is a subsidiary of digital services company My E.G. Services Berhad (MYEG), has launched ZCert. The offering is available to Chinese nationals who opt to have their digital identities published to the Xinghuo BF network, a Chinese national blockchain infrastructure network developed under the guidance of China’s Ministry of Industry and Information Technology and managed by the China Academy of Information and Communications Technology.Photo by Diego Jimenez on UnsplashFirst-of-its-kind applicationZetrix acts as an international super-node relative to the Xinghuo blockchain. In a press release published by PR Newswire on Oct. 3, the company outlined that ZCert had been launched as a first-of-its-kind application, enabling Chinese nationals “to be authenticated and verified digitally overseas, paving the way for a seamless, efficient, and secure verification process for verifiers and identity holders. ” The service simplifies the issue of identity verification for verifiers located outside of China, as a consequence of Zetrix’s integration with the Xinghuo BIF network.  Connecting to ‘China Web3’Xinghuo signed a memorandum of understanding (MoU) with Zetrix’s parent company, MYEG, to establish the international super-node back in November 2022. The tie-up was seen as an opportunity to provide access to Chinese government agencies and businesses internationally.  At the time, MYEG Managing Director and Zetrix Co-Founder Wong Thean Soon said that “with the commencement of the Xinghuo International Supernode, the rest of the world can connect and be part of the China Web 3 evolution that will promote the establishment of international communities and facilitate global trade and finance.”  On this occasion, Wong said that the new product “enables a new wave of services powered by smart contracts.” He added that KYC processes can be simplified and automated, while “user data is retained by users at all times and only critical information is shared in an encrypted manner." The company has already digitized Chinese driving licenses for the purpose of overseas verification. Furthermore, it has plans to expand its offering beyond ID verification soon. In April of this year, Zetrix and MYEG signed an MOU with MaiCapital, a Hong Kong-based virtual assets manager, with a view towards collaborating on the launch of a digital asset fund or digital asset-based exchange-traded fund (ETF). Last year Zetrix engaged in a pilot project with the Bank of China with the aim of offering supply chain financing products. On a similar theme, its parent company entered into a partnership with the Philippines Bureau of Customs (BOC) and Cargo Data Exchange Center Inc. (CDEC), also in 2023. The collaboration involved the use of Zetrix’s ZTrade product, a Web3 platform that enables digitized trade document verification. Zetrix launched its ZETRIX token in October 2023 through an initial exchange offering (IEO) facilitated by the Coinstore exchange.

Buysell Standards and AGST collaborate to expand security token projects in Southeast AsiaBuysell Standards, a South Korean company operating fractional investment platform Piece, is accelerating its expansion into the Southeast Asian market through a recent business collaboration.A report from Korean news outlet Financial News indicates that the company has signed a memorandum of understanding (MOU) with AGST, a subsidiary of blockchain-focused investor Fundiant Holdings. This collaboration aims to launch security token projects within the Association of Southeast Asian Nations (ASEAN) region.Photo by Kelvin Zyteng on UnsplashSingapore in Q1 2024As an asset manager in Singapore and Japan, AGST is set to play a pivotal role in the issuance and distribution of security tokens in these markets. Their strategy includes launching security token products in Singapore in the first quarter of next year. These products will be backed by assets from Buysell Standards.The partnership between Buysell Standards and AGST is set to be multifaceted, encompassing several key areas of collaboration. Together, they will focus on developing new investment products and building the necessary infrastructure to support them. They will also focus on marketing and promotional efforts in the ASEAN region.Anticipating regulatory exemptionBuysell Standards is among the seven companies that received approval from the South Korean Financial Services Commission to issue security tokens. The company is anticipating a regulatory exemption from the government, which would allow them to introduce fractional investment products linked to ship finance.Buysell Standards expects that its partnership with AGST will facilitate quicker access to funding from international sources for high-quality investment products in South Korea. Meanwhile, AGST seeks to introduce a range of Korean assets to the global security token market.Emphasizing the quick adoption of fintech by ASEAN investors and their fondness for South Korea, Shin Beom-jun, CEO of Buysell Standard, stated that the company is committed to actively promoting Korean security token products on the global investment stage.Kim Chang-soo, Chairman of Fundiant Holdings, expressed his ambition to strengthen the Korean security token market. He observed that the market is currently in an early stage of development, leading to the undervaluation of underlying assets. He believes that introducing Korean security tokens to international markets will reciprocally aid in the expansion and maturation of the domestic market.

In a significant move to propel Thailand towards becoming a digital asset hub, the Finance Ministry has announced the exemption of value-added tax (VAT) on digital asset trading. VAT exemptionAccording to the Bangkok Post, the decision became effective on Jan. 1. It aims to foster the growth of the digital asset industry and support the country's growing digital economy. Paopoom Rojanasakul, secretary to the finance minister, underscored the ministry's commitment to promoting digital assets as a viable fundraising tool. By suspending the requirement to pay 7% VAT on income derived from cryptocurrency and digital token trading, authorities seek to encourage investment in the digital asset market. This VAT exemption extends beyond authorized digital asset exchanges to include brokers and dealers under the supervision of the Securities and Exchange Commission (SEC). The move aligns with Thailand's ambition to position itself as the region's premier digital asset hub. Moreover, the Finance Ministry and SEC are actively amending the 2019 Securities and Exchange Act to enhance regulations concerning digital investment tokens, bringing them more in line with securities.Photo by Markus Winkler on UnsplashAttracting offshore digital asset sector investmentThailand's attractiveness to offshore digital asset investors has grown substantially in recent years. The new tax policies are poised to further bolster the country's position in the global digital asset market. Last month, the Thai SEC adjusted the rules governing digital token investments, raising the investment ceiling that had been imposed on retail investors where initial coin offerings (ICOs) relative to infrastructure and real estate are concerned. Furthermore, the Commission has updated criteria for custodial wallet provider businesses, enabling them to extend their services to digital asset business operators, thereby facilitating smoother operations within the digital asset ecosystem. However, Mr. Paopoom emphasized the importance of balancing development with financial stability. While fostering innovation in the digital asset sector, the government remains mindful of safeguarding the integrity of the financial system. Despite these advancements, the SEC has made it clear that it will not permit the trading of spot bitcoin exchange-traded funds (ETFs) in Thailand. This decision contrasts with the recent approval of bitcoin ETFs in the United States and moves towards approving crypto ETFs in Hong Kong, reflecting Thailand's cautious approach to cryptocurrency-related financial products. Nevertheless, Thailand continues to attract global crypto exchanges, with industry giants such as Binance establishing a presence in the country. Last month, Binance announced the launch of crypto exchange services to the general public in Thailand through Gulf Binance, a joint venture with Thailand’s Gulf Innova. The VAT exemption on digital asset trading represents a pivotal step in Thailand's journey towards embracing the digital economy. With supportive regulatory measures and a dynamic market environment, Thailand aims to take its place as a leading player in digital assets.