UAE’s RAK Properties to accept crypto payments through Hubpay partnership

XRP, the native asset of the XRP Ledger (XRPL), a blockchain network developed by Ripple Labs, is destined for further institutional adoption in Asia due to the launch of the region’s first XRP tracker fund. Crypto-focused institutional asset manager HashKey Capital recently announced the launch of its HashKey XRP Tracker Fund, which has been devised to track the performance of what is the world’s fourth-largest crypto asset by market cap, after Bitcoin (BTC), Ether (ETH) and U.S. dollar stablecoin Tether (USDT).Photo by Kanchanara on UnsplashEnabling institutional accessThe fund enables investors to gain exposure to XRP without having to take direct ownership and custody of the digital asset. Bitcoin and Ethereum exchange-traded funds (ETFs) have become popular in a number of markets, including the United States, as they allow institutional investors to gain exposure to these digital assets where they may have been uncomfortable with direct ownership due to concerns around custody and counterparty risk or regulatory concerns. According to HashKey’s press release, investors can buy into the fund through cash or in-kind subscription and subscribe or redeem shares monthly. The fund will be measured and compared against a benchmark index provided by CF Benchmarks, a provider of crypto-related indices. HashKey Partner Vivien Wong acknowledged the potential that XRP has in the market, stating:“XRP stands out as one of the most innovative cryptocurrencies in today’s market, attracting global enterprises who use it to transact, tokenize, and store value.”She added that the new fund simplifies access to XRP within the region, while catering to a growing demand for investment opportunities related to digital assets.Potential ETF fund conversionThis marks HashKey’s third product that tracks digital asset pricing, with the company having launched both Bitcoin and Ethereum exchange-traded funds (ETFs) previously. On X, HashKey Capital outlined that the XRP Tracker Fund could potentially evolve into a fully fledged ETF, subject to regulatory approval, within the next 1-2 years. The new fund, which was launched on April 18, also incorporates a strategic partnership with XRP developer Ripple Labs. In what is understood to be the first of a number of collaborations, Ripple will fulfill the role of being the fund’s anchor investor. Ripple’s Managing Director for the Asia-Pacific (APAC) region, Fiona Murray, cited the development as proof that institutional adoption of digital assets continues to go from strength to strength.  Ripple CEO Brad Garlinghouse stated last month that he expects a number of spot XRP ETFs to be approved in the United States later this year. Earlier in March, analysts at American investment bank JPMorgan had estimated that spot XRP ETF approval in the U.S. could result in net inflows of $8 billion into such products.At the time of writing, XRP was trading at $2.09. The asset has increased in price by 300% over the course of the past 12 months, largely due to a changing regulatory environment in the United States and optimism that a settlement can be reached to end its multi-year legal battle with the Securities and Exchange Commission (SEC).

Representatives from various judicial authorities in China, including the country’s Supreme People’s Court, held a seminar recently to discuss crypto-related legal issues. Speculation on easing of crypto regulationsThat event has sparked a wave of speculation within the crypto sector about a potential softening of the official stance in China relative to crypto. The Chinese government banned crypto trading and mining in 2021. However, beyond these speculative takes, no verifiable information has arisen following the seminar to indicate that the Chinese authorities are pivoting and looking to overturn the current bans on crypto trading and crypto mining. A report emerged on Feb. 25 on Chinese social media platform WeChat that the seminar was held on Feb. 23. Among the attendees was the Dean of the Law School of the Renmin University of China, the Dean of the Law and Fintech Institute (China University of Political Science and Law) and officials from the Supreme People’s Court. Photo by Mikhail Pavstyuk on Unsplash‘Virtual currency disposal issues’The research topic, “virtual currency disposal issues,” included consideration not just of the disposal path of virtual currency but also how to establish and improve digital currency supervision going forward. Participants scrutinized both criminal and civil cases that had involved digital assets, with a focus on possible future enforcement strategies. Some attendees highlighted financial security concerns at a national level relative to digital assets, proposing a strengthening of Chinese regulations in order to minimize that risk. One official from Beijing’s Third Intermediate People’s Court outlined past rulings within the Chinese judicial system in crypto-related cases, while suggesting that there was a need for further research to be carried out in order to further refine the approach taken by the courts. Some proposed a need for further research that takes into consideration legal theory together with real-world application relative to the treatment of virtual assets. This view received the backing of Zhai Chao, vice president of the Supreme People’s Court, the highest court within the People’s Republic of China.Establishing legal precedentOver the last few years, Chinese courts have had the opportunity to establish several precedents relative to digital assets. In 2023 the People’s Courts recognized the legal status of cryptocurrency, classifying it as property. Around the same timeframe, the Shanghai Second Intermediate People’s Court published a report which recognized the unique attributes of Bitcoin, with the report also considering the legal treatment of cryptocurrencies. In September of last year, the People’s Court Daily, a state-run media outlet, published an article calling for standardization in terms of the legal treatment of virtual currencies within the court system. Last August a court in the Chinese province of Hubei ruled that investors must bear their own losses from virtual asset investments where such losses were caused by the closure of a crypto exchange. November 2024 saw further crypto-related court precedent in China, with the Shanghai High Court recognizing virtual currency as property, while a court in Shenzhen ruled that an employment contract that included payment of wages using stablecoin was invalid.

The Royal Government of Bhutan has moved $66 million in Bitcoin (BTC) to global crypto exchange Binance. That’s according to blockchain data analytics firm Arkham Intelligence, outlining that the assets were moved to Binance over two separate transactions. The firm took to the X social media platform on Oct. 29 to highlight the digital asset transfer. In its X post, the firm wrote:”Crypto wallets belonging to the Royal Government of Bhutan moved $66.55M BTC to Binance this morning. The last time they deposited to exchanges was 4 months ago, at the start of July.”Photo by Moose Photos on PexelsSell-off concernsSome crypto community commentators have expressed concern of a sell-off given that the nation nestled in the Himalayas still has a holding of 12,456 Bitcoin, worth in the region of $900 million. The transfer was made on a day in which Bitcoin reached a unit price in excess of $73,000.  Arkham outlined that geographical data suggests that Bhutan’s Bitcoin mines remain active. On Oct. 29, they had accumulated $600,000 worth of Bitcoin mining rewards on-chain.  In this latest market activity, the Bhutanese began selling when the Bitcoin unit price had exceeded $70,000. As Bitcoin reaches towards new all-time-high pricing, Bitcoin whales often take profits. Mining Bitcoin since $5KIt emerged in 2023 that Bhutan had been quietly mining Bitcoin over the course of a number of years, since the leading digital asset had a unit price of around $5,000. The commercial activity has been enabled via Druk Holding and Investments (DHI), the commercial arm of the Royal Government of Bhutan. The Asian nation has ample hydroelectricity resources, being the only carbon-negative country in the world. Consequently, all its Bitcoin mining is carried out using hydro. While mining activity had been ongoing for a number of years and had largely gone unnoticed by the industry, an entanglement between DHI and failed crypto lenders BlockFi and Celsius brought more attention onto the Bhutanese holding company’s activities relative to crypto.  LawsuitsDHI was sued by BlockFi with the action subsequently voluntarily dismissed. In the case of Celsius it withdrew around $65 million from the platform prior to Celsius declaring bankruptcy. As a consequence, Celsius is currently suing DHI to claw back the funds that were removed from the platform. In 2023 Singaporean Bitcoin mining firm Bitdeer entered into a partnership with DHI with a view towards jointly developing green digital asset mining operation within the Kingdom of Bhutan. At the time, DHI CEO Ujjwal Deep Dahal said that the partnership formed part of an overall strategy to ensure that Bhutan took its place at the forefront of global innovation. Arkham Intelligence outlined on X that in H2 2023, Bhutan’s Bitcoin mining operations were producing in the region of 26 Bitcoin per day, or 780 Bitcoin per month. However, over the past three months, that mining rate has decreased to 8.6 BTC per day or 260 BTC per month. Arkham suggests that the Bitcoin halving, together with the increase in the Bitcoin hashrate, explains the reduced output, although it speculated that some unknown issue with Bitcoin mining rigs may also be a contributing factor.