Pakistan appoints crypto advisor to PM & allocates 2K MW to Bitcoin mining

Chinese Insurer Founds 2 Crypto Funds in Hong KongChina has been in the headlines lately as the country continues to take a growing interest in cryptocurrencies in spite of a previous clampdown. According to a blog post published last Thursday, a Chinese state-owned insurance company launched two crypto funds, further solidifying the country’s stance on digital assets.©Pexels/Charlie JinChinese crypto resurgenceChinese insurance behemoth, the China Pacific Insurance Company (CPIC) has launched the two cryptocurrency funds in Hong Kong. The funds will be managed by the firm’s asset management unit, CPIC Investment Management, and have been established in conjunction with venture capital and blockchain start-up investment firm, Waterdrip Capital. Furthermore, they will focus on investments in cryptocurrencies and related assets, with a particular emphasis on Bitcoin and Ethereum.Waterdrip was originally founded in Shanghai in 2017, and has previously invested in the Chinese crypto mining sector, together with other blockchain-related projects. The move comes as China continues to make strides towards becoming a leader in the digital currency space. Last year, the country’s central bank announced plans to create its own digital currency, which is currently in the testing phase. The move is seen as a way for China to gain more control over its financial system and reduce its reliance on the US dollar.Hong Kong crypto hubChina’s growing interest in cryptocurrencies has been driven in part by the country’s rapidly growing tech industry. Companies like Tencent and Alibaba are leading the way in digital payments and e-commerce, and many believe that cryptocurrencies will play a key role in the future of online transactions.The launch of these two crypto funds by a state-owned insurance company is just the latest indication of the formative development of Hong Kong as a crypto hub. Its believed that China is treating crypto development in Hong Kong as a manner in which it can determine how digital assets can be utilized subsequently on mainland China.It’s not the first time a state-owned entity has gotten involved in cryptocurrency. Earlier this year, a state-owned company launched two crypto funds in Hong Kong, with a focus on investing in Bitcoin and other digital assets.Previous crypto crackdownDespite China’s growing interest in cryptocurrencies, the country has also taken a tough stance on the industry in the past. In 2017, the Chinese government banned initial coin offerings (ICOs) and shut down local cryptocurrency exchanges. However, it appears that the country’s stance is shifting, with the launch of these two crypto funds serving as a clear indication of China’s growing interest in digital assets.While China’s embrace of cryptocurrencies is seen by many as a positive development for the industry, there are also concerns about the country’s growing influence in the space. With China’s central bank developing its own digital currency, some worry that the country could use it to further extend its financial reach and influence around the world.Despite these concerns, it’s clear that China’s interest in cryptocurrencies is only growing. As the country continues to make strides in the digital currency space, it will be interesting to see how it impacts the global economy and the future of finance.

The Korea Security Token Offering (KSTO), a South Korea-based association dedicated to providing compliance guidelines for STO projects, announced on Monday that it signed a memorandum of understanding (MOU) with blockchain company Metalab for STO mainnet development. The news was reported by local media outlet Ajunews. Through the MOU, the two institutions plan to create a blockchain platform for local blockchain companies, catering to their needs for STO issuance.Photo by Kaitlyn Baker on UnsplashThe KSTO is an association aiming to provide consultation services on STO design and development and assist blockchain projects in complying with laws and regulations, contributing to building a healthy blockchain ecosystem. Meanwhile, a member of the KSTO, Metalab is a blockchain firm with expertise in developing crypto tokens and decentralized applications, or DApps. The company is reportedly participating in an STO mainnet development project led by the KSTO.  STO infrastructure catering to Korean firms and investors Mainnet refers to the primary blockchain network where actual crypto transactions take place, such as the Ethereum or Solana platform. Mainnets, which operate on their own based on their independent infrastructures, are highly valued in the crypto markets due to the complexity of developing such networks.  This blockchain mainnet project involving Metalab will offer basic infrastructures that enable large-scale STO transactions, with plans to release features for STO issuance and management in connection with crypto wallets.  An KSTO official stated that the institution aims to support companies willing to issue STOs, from both technological and legal perspectives. The person highlighted the institution’s commitment to creating an STO ecosystem tailored for Korean companies, saying that the project will create a regulation-compliant, user-friendly platform and develop it to a level where it can rival the industry’s leading players like Polymesh, a prominent security token platform.  

Banking giants in Turkey embrace crypto ahead of legislative changeIt remains unclear what the underlying environment for the further development of the crypto sector in Turkey will be until such time as the country introduces a legislative framework to shape the industry’s development. However, that fact is not deterring a couple of Turkey’s leading banks, who have decided to embrace the digital asset realm.Photo by Michael Jerrard on UnsplashStablex acquisitionOn Monday CoinDesk Turkiye reported that the investment arm of Turkish bank Akbank had acquired local crypto company Stablex. Stablex was founded in May 2020 by Jihad Shannak with the objective of providing professional services, including trading relative to cryptocurrencies in Turkey. Majority shareholding passed to Ak Investment in May of this year, with initial negotiations on the sale having commenced in August 2022.A high-ranking official at Ak Investment expressed the group’s ambition to become a pivotal figure in the digital asset realm, signaling a proactive approach to the evolving financial landscape. Akbank also banks the majority of crypto start-ups based in Turkey.Speaking about the acquisition recently, Akbank executive Mert Erdoğmuş stated:“We have invested in Stablex to respond to the need for reliable and innovative service in the cryptocurrency market. Stablex reflects our values with its experience in the sector, pioneering achievements and professional service approach.”BBVA crypto walletAlongside Akbank’s move into the digital assets arena, Garanti BBVA, Turkey’s second largest private bank, recently unveiled its crypto wallet app. The feature-rich application includes a cold wallet, empowering users to seamlessly send and receive assets such as bitcoin (BTC), USD Coin (USDC) and ether (ETH).The pilot project for the app commenced in August, with the application currently available on iOS. In bringing the app to market, the bank created Garanti BBVA Digital Assets, a dedicated subsidiary firm. Commenting on that development back in August, the subsidiary’s Chairman of the Board, M. Çağrı Süzer, stated:”Our research shows that customers significantly value trust in their crypto transactions and especially on its storage. Hence, we are happy to launch our Crypto Custody Wallet addressing these real needs.”Despite uncertainties, Turkey has firmly established itself in the global crypto landscape, ranking among the top 20 countries in Chainalysis’ Global Crypto Adoption Index 2023. The instability of the Turkish lira in recent years has been a driver for crypto adoption in the country. In recent days, the bitcoin unit price has reached its highest exchange rate level against the local sovereign currency.Earlier this week, it emerged that crypto platform Blockchain.com is adding headcount and has its sights set on expansion into Turkey as one of its growth opportunities.FATF-compliant regulatory approachTurkey’s regulatory stance has been to take a cautious approach. In 2021, the central bank restricted the use of crypto for payments, although a complete ban on digital assets was ruled out by officials.Looking ahead, a government official revealed plans for crypto legislation to be presented to Parliament in November. While details remain scarce, this legislative move aligns with Turkey’s broader strategy to exit the Financial Action Task Force’s (FATF) “gray list.”