Ant Group preparing to apply for stablecoin licenses in Hong Kong & Singapore

Bhutan Launches Blockchain-Based National ID SystemBhutan, the Buddhist kingdom nestled along the eastern edge of the Himalayas, has introduced a blockchain-based National Digital Identity (NDI) system.Photo by Aaron Santelices on UnsplashDisrupting the delivery of government servicesThe blockchain-based cryptographic identity platform has the potential to revolutionize the way Bhutanese citizens access government services and conduct digital transactions. According to local Bhutanese media source BBS, the system was launched last week, giving Bhutanese citizens the opportunity to download the Bhutan NDI application directly to their mobile devices.The user-friendly application promises a seamless experience, marked by a straightforward login process. Once registered, citizens will gain access to an array of government services. These will include construction approvals, land taxes, passport services, birth and death registration certificates, as well as Royal University of Bhutan degree certificates and various business-related services, all within the confines of their digital wallets.Digital wallet alongside digital identityNotably, the development could have major implications where the future use of digital currency in Bhutan is concerned. The NDI is not just a digital identity but a digital wallet.That means that users have the option to link their bank accounts to the NDI app, facilitating financial transactions without the need to switch between multiple apps. As of now, the Bank of Bhutan is the first financial institution to integrate with the NDI app.The Royal Monetary Authority of Bhutan (RMA) entered into a collaboration with enterprise blockchain firm Ripple Labs in September 2021 to develop and trial central bank digital currency (CBDC).Streamlining service deliveryThe GovTech Agency, the driving force behind the NDI project, envisions that this digital innovation will streamline and simplify the often arduous process of interacting with government agencies. Jigme Tenzing, the Acting Secretary of the GovTech Agency, explained the transformative potential, stating:“So, essentially what this enables for Bhutan is the ability to take almost all services and make them available online. This can virtually transform how services are provided in Bhutan. This is regarded as not only services that the government provides to citizens, but it can extend to even the private sector.”Some concerns have been raised with regard to this consolidation of personal information within a single platform. The GovTech Agency has responded by emphasizing the incorporation of biometric data, including fingerprint and facial recognition, to enhance identity verification and authentication. It feels that these measures are sufficient to safeguard data privacy.Crypto investmentThere had been little in the way of news emerging from the South Asian country where decentralized technology was concerned until earlier this year when it became known that the kingdom had been an investor on the failed crypto lender platforms of Celsius and BlockFi.It had done so through Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan. In May it emerged that DHI had entered into a partnership with Singapore-based Bitcoin mining firm Bitdeer, with the intention of developing green digital asset mining operations within the country.The National Digital Identity Act of Bhutan 2023 received Royal Assent in July, solidifying Bhutan’s status as the first sovereign nation to implement a comprehensive decentralized identity framework.

Japan’s Cryptoasset Group Proposes Self-Regulatory Reforms for IEO SystemThe Japan Cryptoasset Business Association (JCBA) has revealed a preliminary draft advocating for reforms in self-regulation to bolster the soundness of the initial exchange offering (IEO) system. This draft has been submitted to the Japan Virtual and Crypto Assets Exchange Association (JVCEA).IEOs serve as a mechanism enabling various enterprises to accrue funds and broaden their user base by orchestrating token sales on cryptocurrency exchanges for Web3 projects. This fundraising method holds the potential to enhance trust as crypto exchanges, supervised by the Japanese Financial Services Agency, undertake evaluations of project feasibility and maintain ongoing oversight.Photo by Takashi Miyazaki on UnsplashPositive regulatory developmentsThe ameliorating regulatory landscape is also a positive development, highlighted by this year’s tax law amendment, which grants exemptions to enterprises’ self-issued tokens from year-end corporate taxation. In Japan, four IEOs have been conducted so far, with the inaugural IEO amassing over 900 million yen (approximately $6 million). The cumulative amount from the four IEOs has surpassed 4.4 billion yen. However, given that the IEO is a relatively nascent fundraising method, improvements in token price stability and operational modalities are required to ensure that businesses and users can engage with it confidently.Enhanced user protectionAgainst this backdrop, JCBA, an organization comprised of various enterprises involving virtual assets and Web3, has been discussing the direction of the IEO system from a corporate viewpoint since May of this year. Establishing price stabilization measures and selling restrictions within the Japanese IEO system will contribute to user protection by allowing investors to manage their assets under domestic regulations. JCBA stated that users will find domestic exchanges more secure in comparison to foreign ones.As this proposal represents an initial draft, deliberated and formulated only within the JCBA, the group intends to consult and assess the feasibility of the self-regulatory rules with each pertinent organization as necessary.Four key pointsThe document submitted by JCBA to JVCEA presented four key points concerning the IEO. Pertaining to pricing, it suggested the diversification of calculation methods customized to each project and the specification of price-related disclaimers. On liquidity, it posited that liquidity objectives should be established at the time of listing, and an environment conducive to securing liquidity should be developed. JCBA also pointed out the necessity of establishing rules for price stabilization measures at the time of listing. Finally, regarding selling restrictions, it was noted that both token issuers and exchanges should adhere to a minimum three-month lock-up period for tokens.

Zodia Custody and Blockdaemon Partner on Institutional StakingLondon-based cryptocurrency storage provider Zodia Custody, a portfolio company of Japan’s SBI Holdings, has entered into a partnership with blockchain infrastructure provider Blockdaemon relative to crypto staking.Photo by Traxer on UnsplashInstitutional interestBlockdaemon announced the crypto staking collaboration, tailored to institutional clients, on Twitter on Tuesday. This move comes as institutional interest in staking, the process of contributing digital assets to support blockchain networks and earning rewards, continues to surge.Following the Ethereum network’s Shapella upgrade on April 12, the amount of ether (ETH) staked increased by an impressive 4.4 million, reaching a total of 22.58 million ETH (equivalent to $42 billion) as of May 23. This remarkable growth in staked assets reflects the growing confidence in the Ethereum network and the potential for substantial returns.First bank-owned custodianZodia Custody is a subsidiary of the well-known multinational bank Standard Chartered and backed by prominent institutions such as Northern Trust alongside SBI Holdings. It claims the title of being the first bank-owned custodian to provide staking services exclusively to institutional clients. This collaboration enables Zodia Custody to leverage Blockdaemon’s infrastructure to deliver secure and efficient staking solutions, catering to the specific needs of institutional investors.Blockdaemon has been at the forefront of facilitating seamless integration between traditional financial institutions and the emerging crypto industry. Earlier this year, the company introduced a wallet service targeted at the institutions and crypto custodians. The wallet assists clients in managing their assets securely, eliminating the need for third-party storage solutions. By partnering with Zodia Custody, Blockdaemon expands its portfolio of services, capitalizing on the rising demand for staking among institutional investors.The firm’s CEO and Founder, Konstantin Richter, stated that the partnership with Zodia “allows stronger security, automation and simplification of the process to participate in staking, truly accelerating Web3 innovation.”LMAX collaborationEarlier this month Zodia partnered with digital asset trade execution specialist LMAX Digital to provide a combination of institutional-grade trading infrastructure and custody services to crypto asset manager, Coinshares.Institutional investors, traditionally cautious about entering the crypto ecosystem, are now becoming more proactive in engaging with digital assets. Staking, with its potential for consistent and predictable returns, has emerged as an appealing opportunity. By participating in staking, institutions not only contribute to the efficient functioning of blockchain networks but also enjoy the rewards associated with validating transactions and securing the network.The partnership between Zodia Custody and Blockdaemon exemplifies the industry’s efforts to bridge the gap between traditional finance and the rapidly evolving world of cryptocurrencies. As more institutional clients seek exposure to digital assets, it becomes essential to provide them with secure and reliable solutions tailored to their specific requirements.With demand for staking services continuing to rise, institutional players are recognizing the value of taking a more active part in the crypto ecosystem. With Zodia Custody and Blockdaemon leading the way, the opportunities for institutional clients to engage in staking and reap the rewards are set to expand, further fueling the growth of the entire crypto industry.