RWA tokenization gaining momentum in UAE

China Unveils Blockchain-Powered Data ExchangeChinese government officials have announced the launch of a data exchange leveraging blockchain technology during the 2023 Hangzhou Summit in China on Wednesday.According to local media reports, the Hangzhou Data Exchange, introduced at the summit held in Hangzhou, aims to facilitate seamless buying and selling of Web3 data across enterprises. The event garnered participation from over 300 companies, including tech giants Alibaba Cloud and Huawei, marking a significant step towards embracing decentralized technology for data management.Photo by Xiaolin Zhang on UnsplashEnabling Web3 data tradingIt’s understood that the Hangzhou Data Exchange has been established with the aspiration of revolutionizing the trading landscape for enterprise information technology data by harnessing the capabilities of distributed ledger technology. Officials emphasize that the platform’s implementation will ensure that transactions conducted through the exchange remain unalterable and traceable.Chen Chun, the Director of the National Laboratory of Blockchain and Data Security, provided insights into the exchange’s advanced features, stating that it integrates research blockchain, privacy computing, and other cutting-edge technologies to establish a secure and confidential environment for sharing and utilizing data across departments and regions.Hangzhou’s digital economy sector has demonstrated significant growth, surpassing 500 billion Chinese yuan (equivalent to $69 billion) in 2022. This accounted for nearly 27% of the city’s total GDP. It suggests that the city is putting a strategic focus on technological development and innovation.Complex blockchain strategyChina’s stance on blockchain technology has been complex. While the Chinese authorities have been rigorous in regulating private blockchain enterprises, they have simultaneously championed government-led blockchain initiatives.President Xi Jinping, during the inauguration of the 2023 Shanghai Cooperation Organization Conference (SCO), highlighted the significance of central bank digital currencies (CBDC) in expanding the use of local currencies for settlements among SCO member countries. In a move to stimulate domestic spending, the Chinese government recently distributed over 100 million yuan worth of digital yuan CBDC to its residents.China’s promotion of its digital yuan has been unrivaled. Over the course of recent months, various initiatives have been launched to further the use of the CBDC. These initiatives have included paying state employees with the currency in Changshu, integration of the currency into the education system in Jiangsu province, and the installation of digital yuan ATMs in Hainan, among many other such projects.Likewise, when it comes to metaverse development, a series of initiatives have been established recently. Henan province established a metaverse fund in May to support metaverse-related projects. In the same month, a National Blockchain Center was established to develop talent within the sector. Around the same time frame, the city of Zhengzhou announced proposals geared towards supporting the growth and development of metaverse companies.The unveiling of the Hangzhou Data Exchange underscores China’s ongoing determination to harness blockchain’s potential, in this case relative to enhancing data trading and management within the Web3 ecosystem.

India’s judiciary turns down plea to formulate a crypto regulatory frameworkThe Indian courts have declined a consideration targeting the establishment of a regulatory framework for cryptocurrency trading, following a plea which had been brought to court by a petitioner.Photo by Naveed Ahmed on UnsplashBeyond the court’s purviewIndia’s Supreme Court, led by Chief Justice Chandrachud, recently confronted a petition urging the establishment of a regulatory framework for cryptocurrency trading. According to a local media report, the bench, which included Justices JD Pardiwala and Manoj Misra, dismissed the plea, emphasizing that the demands presented were legislative and thus beyond the court’s direct action purview. This decision points to the judiciary’s recognition of its constraints in crafting laws, particularly in intricate domains like cryptocurrency.The petitioner, Manu Prashant Wig, a former director at Blue Fox Motion Picture Limited currently in custody due to allegations of cryptocurrency fraud, sought relief through a public interest litigation (PIL) for crypto trading regulations in India.The Economic Offence Wing (EOW) of the Delhi Police accused Wig in 2020 of deceiving investors with promises of high returns from crypto investments, involving 133 reported victims of the scheme. Despite this, during the hearing, the Supreme Court advised Wig to pursue legal remedies through appropriate channels, specifically for bail, underlining its inability to issue directives under Article 32 of the Constitution for legislative matters.Judiciary criticize governmentWhile the judiciary has found that it cannot act itself in putting in place a crypto regulatory framework, the Supreme Court has been critical of the government’s inaction on the matter. In July, India’s highest court criticized the Indian government for its failure to establish clear cryptocurrency regulations.Interestingly, while the government hasn’t acted locally, it has been making efforts to drive regulation at an international level instead. The status of cryptocurrency trading in India remains uncertain, with the country developing a regulatory framework influenced by recommendations from the International Monetary Fund (IMF) and the Financial Stability Board (FSB), potentially leading to legal legislation within the next several months.Prime Minister Modi called on authorities internationally to establish a worldwide regulatory framework. At the recent G20 summit, it appears that member states did reach agreement on such a framework.The Supreme Court’s dismissal of the PIL marks a clear distinction between judicial and legislative responsibilities. As India moves closer to formulating a comprehensive crypto regulatory framework, this decision reinforces the imperative for legislative action to address mounting concerns and interests in the crypto market.Awaiting legislative actionThe outcome of these developments is keenly awaited by investors, legal experts and the crypto community, poised to shape the future landscape of cryptocurrency trading in India. The decision signifies the judiciary’s acknowledgment of its limitations and highlights the necessity for a legislative approach to effectively navigate the intricate landscape of cryptocurrency regulation.In this evolving scenario, the verdict amplifies the importance of a well-defined regulatory framework. As the world’s most populous country grapples with the delicate task of balancing innovation and investor protection, the Supreme Court’s decision places the ball firmly in the legislative court.

Taiwanese cryptocurrency exchange under investigation for money launderingBitgin, a cryptocurrency exchange in Taiwan, is currently under police investigation for alleged money laundering, with its Chief Operating Officer, Yuting Zhang, arrested in connection to the infamous “88 Guild Hall” money laundering incident. The exchange is cooperating fully with the investigation and has assured users that its operations remain unaffected.Photo by Adam Jang on Unsplash‘88 Guild Hall’ scandalThe “88 Guild Hall” scandal, which unfolded from late 2021 to March 2022, implicated Zhang in a massive money laundering network. The controversy exposed a multi-billion dollar operation orchestrated by local businessmen Zhemin Guo and Chengwen Tu, utilizing a network of foreign exchange offices and crypto exchanges.Yuling Tsai, General Counsel of the Taiwan VASP Association, addressed the situation, stating: “This time, a member of the preparatory group was involved in the investigation case. The preparatory group immediately held a meeting and issued a public response. The members involved in the case also took the initiative to suspend participation in the work of the preparatory group.”Business as usualIn an official statement, Bitgin confirmed Zhang’s association with the scandal and clarified that the ongoing investigation has not disrupted its operations. The exchange emphasized its commitment to cooperating with authorities, providing all necessary assistance to facilitate a smooth investigation process.The statement reads: “At present, Bitgin is fully cooperating with the investigating unit and actively providing all necessary assistance to ensure the smooth conduct of the investigation and hopes that the facts can be clarified as soon as possible.”Bitgin also confirmed that in light of the charges, the COO has ceased all communications with counterparties.Focus on regulationTaiwan’s Financial Supervisory Commission (FSC) outlined earlier this year its intention to restrict the activity of non-compliant offshore crypto exchanges. While cryptocurrency exchanges are not officially regulated yet, local operators have taken cues from the FSC to move towards self-regulation. A preparatory group was formed in September with Bitgin participating as a founding member.While Taiwan still doesn’t have a regulatory framework in place, it has applied anti-money laundering (AML) regulation to crypto businesses. In August, leading crypto exchange Binance initiated steps to register for AML compliance in Taiwan.Earlier this year, Taiwanese officials suggested that they would foster self-regulation while proposing the classification of crypto regulations within their own unique business category. Efforts were furthered last month when legislators introduced a cryptocurrency bill for its inaugural reading.JPEX falloutBeyond Bitgin, Taiwan is grappling with the fallout from wayward crypto exchange JPEX, which is accused of orchestrating Hong Kong’s largest financial scam. The authorities raided the local office of JPEX and identified suspects involved in the alleged fraud. To compound matters, local police also uncovered a $320 million crypto money laundering operation earlier this month.The incidents highlight the ongoing challenges faced by regulators in the region as they strive to protect investors from fraudulent activities.As the investigation unfolds, the Taiwanese cryptocurrency industry, along with its self-regulatory initiatives, remains under scrutiny, emphasizing the broader need for regulatory frameworks to safeguard the interests of investors and maintain the integrity of the market.