Russia preparing to launch crypto mining equipment registry

Korean Lawmakers Make Progress on Virtual Asset User Protection BillOn Tuesday, the subcommittee for legal deliberations under the South Korean National Assembly’s National Policy Committee reached a consensus during the first review of the Virtual Asset User Protection Bill, according to Yonhap Infomax.©Pexels/Andrea PiacquadioFirst review phaseThe bill is undergoing a two-phase review process before being legislated. During the first phase, the primary focus was on safeguarding customer assets and preventing unfair transactions. The second phase is expected to concentrate on market order regulations, including the issuance and disclosure of virtual assets.Application of Capital Markets ActSeveral stipulations were included in the approved draft of the Virtual Asset User Protection Bill during the initial review phase. These stipulations include prioritizing the application of the Capital Markets Act to virtual assets that are classified as securities, while excluding central bank digital currencies (CBDCs) from the definition of virtual assets to avoid any potential confusion. The bill also seeks to impose compensatory damages and penalties for any unfair trading practices, and establish a virtual asset committee responsible for investigating any unfair transactions in the digital asset market.The virtual asset committee will also engage in preliminary deliberations regarding the management, supervision, and monitoring of the digital asset market. The committee will carry out tasks assigned to it by the Financial Services Commission (FSC). Furthermore, the Bank of Korea has been granted the right to request data from virtual asset operators since virtual assets, although not currencies, are necessary to consider when establishing monetary credit and financial stability policies.No class action systemHowever, the introduction of a class action lawsuit system was not adopted, and details about inspecting virtual asset operators will be stipulated in a presidential decree rather than a law.Second review phaseFor the second review phase, the FSC will report several matters to the National Assembly. These will involve tasks such as establishing a regulatory framework for stablecoins, security tokens, and utility tokens. In addition, the agency will be responsible for creating a regulatory system for virtual asset valuation, advisory, and disclosure services, as well as an integrated computerized system that provides reliable and reasonable information on digital assets. The FSC will also explore ways to enhance the business conduct discipline of cryptocurrency operators by commissioning research from external organizations.Additionally, the FSC and the Financial Supervisory Service will work on supporting virtual asset exchanges to establish uniform standards for the circulation supply of virtual assets. The regulatory bodies will also enforce the requirement for transparent disclosure and strict internal control on virtual asset operators. Moreover, regulations will be developed to enhance virtual asset usability and remove any obstacles that may impede the development of innovative real-life services.

In an interview with local media, Hong Kong legislator Johnny Ng called for the Chinese autonomous territory to implement a national Bitcoin reserve. Ng made the comments in a discussion with Hong Kong-based state-owned Chinese language media outlet, Wenweipo. The legislator believes that there is an opportunity for Hong Kong to take advantage of China’s “one country, two systems” approach to governance, which gives it the freedom to implement such a reserve despite mainland China remaining much less enthusiastic where Bitcoin and cryptocurrencies are concerned.Photo by Kanchanara on UnsplashSpot Bitcoin ETF impactThe Hong Kong Legislative Council member suggested that as a first step, Hong Kong needs to assess the impact that spot Bitcoin exchange-traded funds (ETFs) in the United States have had. Spot Bitcoin ETFs were launched in the U.S. in January. The leading spot Bitcoin ETF, IBIT, provided by asset manager BlackRock, has achieved a growth rate five times faster than any other ETF launched in the past. El Salvador and the Kingdom of Bhutan are examples of nations that have made Bitcoin a significant component within their national reserves. A recent report suggests that El Salvador currently holds 6,000 Bitcoin which it purchased at an average price of $45,465. In November, Arkham Intelligence reported that Bhutan was holding Bitcoin with a dollar value which had exceeded $1 billion at that time. Ng also referred to a move by individual states in the U.S. towards holding Bitcoin as a reserve asset. In August, the state of Wisconsin increased its holdings of shares in BlackRock’s spot Bitcoin ETF, IBIT. Last month, the state of Pennsylvania introduced a bill to make Bitcoin a strategic asset. Ohio has proposed similar legislation while Alabama’s State Auditor, Andrew Sorrell, has suggested that his state should establish a Bitcoin reserve. Reducing price volatilityNg believes that furthering the Chinese autonomous territory’s dealings relative to Bitcoin could prove beneficial, given that Bitcoin has the potential to play a role in attracting more talent and investment to Hong Kong. Additionally, he feels that the development of Bitcoin reserves at state level could help in reducing the price volatility of the asset as it goes through the process of global adoption. The Hong Kong lawmaker also believes that there is an opportunity for the Chinese antonymous territory to benefit from first mover advantage, stating that “the value of Bitcoin will be more stable, causing more and more other countries to follow suit and reduce their holdings of traditional assets.” Ng's latest interview follows a similar comment he made on X in July, where he suggested that Bitcoin is worth considering as an official financial reserve for a country. David Bailey, CEO of Bitcoin Magazine, took to X stating: “Hong Kong making moves, SBR here we go. President Trump must make the Strategic Bitcoin Reserve his top priority the day he enters the White House.”In recent days, soundings from Japan and Russia suggested that neither of these countries was prepared to establish Bitcoin reserves. However, just like with the advent of the Bitcoin ETF in the U.S., following Trump’s expression of interest in the establishment of a strategic Bitcoin reserve, the level of consideration of the matter has increased considerably among governments around the world.

Harvest Global to establish fixed income tokenized fundHong Kong investment firm Harvest Global Investments, in partnership with Meta Lab HK, is set to offer a tokenized U.S. dollar bond fund.The collaboration between Harvest Global Investments (HGI), an affiliate of Harvest Fund Management, and Meta Lab HK, backed by Harvest Digital Assets, marks a significant development in the crypto investment landscape within Hong Kong and the broader Asian region.Photo by Giorgio Trovato on UnsplashFirst fixed-income tokenized fund from Chinese institutionMeta Lab HK announced details of the new offering, detailed in a Nov. 22 post on X (formerly Twitter). The fund targets professional investors and will concentrate on U.S. dollar bonds with an investment-grade rating. Meta Lab wrote:”We have learned that this will be the first fixed-income tokenized fund introduced by a Chinese financial institution in Asia with a tokenization arrangement. The fund is exclusively available to professional investors and primarily invests in investment grade U.S. dollar bonds.”Meta Lab added, “The offering is set to be managed by HGI, a subsidiary of Harvest Fund in Hong Kong, with Meta Lab HK providing the tokenization solution.”The tokenization of the fund, a process transforming traditional financial assets into digital tokens, is expected to enhance accessibility and efficiency for investors. The notification to Hong Kong’s securities regulator has been duly completed, underscoring the compliance and regulatory adherence of the initiative.The move comes amidst a series of noteworthy developments emerging from Asia, occurring against the backdrop of persistent regulatory challenges facing the cryptocurrency industry in the United States.CoinFund market entryThis announcement follows closely on the heels of CoinFund, a New York-based investment firm, which revealed its plans to expand services into Asia earlier this week. Choosing Hong Kong as the inaugural location for this expansion, CoinFund cited the city’s appeal to crypto talents as a key factor. As Asia takes strides in pioneering tokenized funds, it suggests a competitive landscape in digital asset development that could rival the United States.It’s likely that Hong Kong is providing a workable environment for Harvest Global to take this tokenized product to market. In August, the local regulator, the Hong Kong Monetary Authority (HKMA), published a report where it indicated an interest in pursuing tokenization as a means to improve aspects of the bond market. The report presented outcomes of Project Evergreen, an initiative the HKMA had been running to examine the potential of tokenization, which also incorporated the launch of a first-of-its-kind tokenized green bond.Regional tokenization interestRecent weeks have also seen further efforts being made within the Asian region in terms of bond tokenization. Last week, SC Ventures, the Singaporean investment subsidiary of British banking group Standard Chartered, unveiled a new platform called Libeara. That platform is working towards the launch of the first-ever tokenized Singapore dollar government bond fund.In the same week, the Bureau of the Treasury in the Philippines announced that it is issuing $179 million in one-year tokenized bonds, with the bonds being facilitated by the Development Bank of the Philippines and the Land Bank of the Philippines.