Former Binance CEO advising Kyrgyzstan on blockchain & crypto

SBI and Saudi Aramco to explore digital asset business partnershipsJapanese financial services conglomerate SBI and Saudi Arabia’s state-controlled energy giant Saudi Aramco have jointly announced their exploration of potential collaboration in the realms of digital assets and semiconductors.Photo by Chris Liverani on UnsplashDigital asset portfolio co-investingThe partnership, which was publicly disclosed last week, aims to delve into co-investing in each other’s digital asset portfolios. Such an arrangement will leverage SBI’s substantial holdings and the formidable position of Aramco as the world’s second-largest company by revenue, boasting a staggering $604 billion figure. The partnership will mark a strategic alliance that goes beyond geographical boundaries, underscoring the global impact of digital asset investments.The collaboration between SBI and Aramco extends beyond mere investment, with SBI actively seeking to identify Japanese digital asset startups keen on expanding their operations into Saudi Arabia. The joint effort aims to provide comprehensive support to these startups, facilitating their integration into the Saudi market and contributing to the growth of the digital economy.SBI Middle EastIn addition to this venture, SBI is set to establish “SBI Middle East” in Riyadh, serving as a central hub for its operations in the Middle East. This move aligns with SBI’s recent announcement of a $100 million joint fund with Standard Chartered, based in Dubai, solidifying its commitment to fostering financial partnerships in the region.When contemplating cryptocurrency activities in the Middle East, Saudi Arabia might not be the first destination that comes to mind, given Turkey’s significant crypto adoption rate and the UAE’s well-established crypto regulatory authorities, such as Dubai’s VARA and Abu Dhabi’s ADGM.However, Chainalysis data reveals that Saudi crypto activity is steadily gaining ground, experiencing the most significant year-on-year growth (12%) to June 2023. Additionally, the country’s Vision 2030 initiative involves efforts to diversify its economy. With that, blockchain and Web3 are being embraced.TokenizationWhile lacking a formal crypto regulatory regime, recent reports suggest that Saudi regulators are warming up to the idea, indicating a shift in approach. A recent collaboration has emerged between the central banks of Saudi Arabia and Hong Kong which will explore tokenization and payments infrastructure.It is noteworthy that both SBI and Aramco explicitly referred to “digital assets” in their collaboration, avoiding the mention of cryptocurrencies. This emphasis raises the possibility that the focus might extend to tokenization, an area where SBI has a robust presence, notably through the establishment of the Osaka Digital Exchange (ODX), set to commence trading tokenized securities later this month.As part of its digital asset investments, Saudi Aramco has previously engaged in blockchain initiatives, including investments in VAKT, a post-trade solution for the oil sector. Additionally last year Aramco invested in blockchain startup Data Gumbo, which utilizes blockchain in order to bring about operational efficiencies. The collaboration extends to the approval of electronic bill of lading (eBL) providers like TradeGo.In February, Aramco signed an agreement with droppGroup to build out a range of Web3 technologies. Furthermore, Aramco’s investments in companies like Red Date Technologies and IR4LAB underscore its interest in developing blockchain-based services, including document and supply chain solutions.

Shanghai Court Recognizes Unique Traits of BitcoinThe Shanghai Second Intermediate People’s Court has added a layer of legitimacy to Bitcoin despite China’s prevailing anti-crypto stance.In a recently published report, the court recognized digital currencies such as Bitcoin as being unique and non-replicable. It went further still in singling out Bitcoin as being distinct from the thousands of other cryptocurrencies that are currently in existence.Photo by Zhou Xian on UnsplashSun chimes inThe significance of this development has caught the attention of Justin Sun, the Founder of the TRON blockchain network, who took to the X social media platform (formerly Twitter) to share insights from the report. Sun wrote:”The Second Intermediate People’s Court of Shanghai believes that with the development of internet technology, digital currencies represented by Bitcoin possess uniqueness and non-replicability.”Legal attributesDelving deeper into the report’s content, it becomes evident that the court was engaging in a discussion about the legal attributes of Bitcoin and how judicial decisions should be approached in cases involving cryptocurrencies.One striking aspect of the report is how it acknowledges the usage of cryptocurrencies in illegal financial activities, such as illicit fundraising. In this instance, the court has indirectly acknowledged the financial nature of cryptocurrencies, including Bitcoin, despite the fact that a ban has been in place on trading Bitcoin and other cryptocurrencies since 2021.That said, the report also notes that due to the regulatory stance on cryptocurrencies, the legal attributes of digital currencies remain ambiguous, creating challenges in their judicial handling. Despite some courts attempting to disregard the “monetary” and “property” attributes of digital currencies, these efforts have proved unsuccessful.Inherent characteristicsRegarding the monetary attribute, the courts still identify the sale price of digital currencies in their judgments. When it comes to property attributes, these courts struggle to ignore the inherent property value presented by digital currencies during legal proceedings.While acknowledging Bitcoin’s decentralized nature and lack of centralized control, the article still underscores its “major functions of currency,” such as scalability, circulation, storage, and means of payment, making it a global currency.Future implicationsThe legal opinion expressed by the Shanghai court provides a notable boost to the legitimacy of Bitcoin and other digital currencies. It asserts that these tokens undeniably possess value, even if the People’s Bank of China chooses not to formally recognize them.Moreover, the court’s inclination toward classifying cryptocurrencies as personal property aligns with another report from the Chinese courts as well as rulings in other jurisdictions, such as Singapore. Similarly the Shanghai court acknowledges that Bitcoin can be acquired through various means, including mining, inheritance, and buying and selling.The court’s recognition of the enduring value of cryptocurrencies echoes the sentiment that value is a collective human judgment. In this respect, the Shanghai court’s perspective aligns with the reality that many Chinese citizens continue to use digital currencies as a medium of exchange despite the existing ban.The Shanghai court’s unintentional validation of Bitcoin’s unique attributes and value may have broader implications for the legal status and recognition of cryptocurrencies in China and beyond. This latest development could contribute to a more nuanced approach to cryptocurrency regulation and legal interpretation in the future.

Aptos and Lotte Group Collaborate on Pink Bear NFTs to Drive Web3 ExpansionLayer-1 blockchain network Aptos took to X (formerly Twitter) to announce a partnership with Lotte Group, an industrial conglomerate based in South Korea with a specialization in the retail business. This strategic collaboration aims to propel Lotte’s expansion into the dynamic Web3 landscape.Photo by 김 대정 on PexelsPink bear NFTsThe initial focus of their collaboration will center around Bellygom, the pink teddy bear mascot of Lotte Home Shopping — a major player in the Korean media commerce industry. NFT projects associated with Bellygom, including the Bellyland universe, are under the stewardship of Daehong Communications, a marketing solutions company affiliated with Lotte. Aptos will play a pivotal role by providing the backend support for the development of Super Jelly, a reward system within Bellyland. These Super Jelly rewards, slated to be launched on the Aptos mainnet, will be attainable through engaging in Jelly Adventures — a collection of diverse games and missions within Bellyland.Aptos and Lotte Group have expressed their enthusiasm for venturing into Web3 initiatives throughout multiple business areas of the South Korean retail giant. Aptos noted that more updates will follow as this collaboration unfolds.Earlier partnership with PolygonThe momentum behind Daehong Communications’ Bellygom NFT initiatives for global expansion grew as it joined hands with blockchain company Polygon in February. This partnership led to the migration of Bellygom NFTs from the Klaytn blockchain to the Polygon blockchain in April.Lotte’s hospitality business and NFTsIn June, Daehong employed NFTs to attract customers to various Lotte entities. Through Korea’s largest NFT trading platform, Pala, the marketing affiliate sold Magic Ride NFTs, aiming to enhance customer engagement for the Lotte World amusement park, Lotte Duty Free, and Lotte Hotels.