First Toyota vehicle in Bolivia purchased with USDT as inflation bites

Vietnam has moved to take a positive approach to crypto assets by passing legislation to legalize them. Last week, the Southeast Asian nation’s National Assembly passed the Digital Technology Industry Law, which takes effect on Jan. 1, 2026, according to a report published in the official online newspaper of the Vietnamese government. Photo by Daniel Bernard on UnsplashCategorizing digital assetsThe law sets out two categories of digital assets, virtual assets and crypto assets. The legislation frames virtual assets as digital assets used for exchange or investments. Meanwhile, crypto assets are to be regarded as digital assets utilized to validate transactions and confirm ownership while relying on the use of encryption technology. Neither category includes securities or digital versions of fiat currencies such as central bank digital currencies (CBDCs) or other financial instruments. The legislation gives the Vietnamese government the authority to define and apply specific regulatory conditions when it comes to items such as anti-money laundering (AML) measures and the inclusion of international cybersecurity standards. It is hoped that the law will pave the way for the development of home-grown technological enterprises within Vietnam, while also promoting a nationwide digital transformation process. Regulatory clarityThe legislation is significant as it clearly sets out the legal status of digital assets in Vietnam after years of uncertainty and regulatory ambiguity. Singapore-based blockchain-focused Business Strategist, Anndy Lian, said that such legal clarity could result in Vietnam becoming a regional hub for the crypto sector.  Anh Tran, who belongs to Superteam Vietnam, a community for Solana builders in Vietnam, said that the development was huge for founders, developers and investors in the crypto space in Vietnam. He stated: “For a country who has always been at the forefront of crypto adoption, [Vietnam] is now a 'green-lighted zone' in principle, but we're still waiting at the red light for operational rules.” He refers to the fact that Vietnamese regulators still have until Jan. 1, 2026, to flesh out the details in terms of defining who can issue, trade, custody or manage crypto, and how AML, cybersecurity and taxation are handled. Vietnamese officials are likely to give strong consideration to AML measures relative to crypto given that the Southeast Asian nation has been on the grey list of the Financial Action Task Force since 2023. Countries who appear on the grey list are under considerably more scrutiny with regard to AML matters. While another community member claimed that anywhere crypto regulation has been implemented, actual usage has declined, Tran maintained that regulation is inevitable and that “crypto doesn’t need to be lawless to be free.” Last October, Vietnam set out its blockchain strategy, aspiring to the goal of achieving regional leadership in the sector by 2030. In March, the country’s Prime Minister, Pham Minh Chinh, requested that a legal framework for cryptocurrencies be established.  According to Chainalysis’ 2024 Global Crypto Adoption Index, Vietnam ranks fifth in the world.

Real-World Assets Emerge as a Beacon of Hope for the Blockchain Industry Amid Crypto WinterIn the midst of a crypto winter that has cast a shadow over the blockchain industry, a new opportunity has come to light — the tokenization of real-world assets (RWAs), or tangible assets such as gold and real estate, on blockchain networks.Photo by Tierra Mallorca on UnsplashMajor blockchain companies and industry experts gathered at Klaytn Square Lounge 2023, a blockchain and Web3 event in Gangnam, southern Seoul on Monday to discuss how RWAs could overcome the limitations of the current blockchain market.The rise of RWAsRecently, platforms like RWA tokenization project Elysia and Klaytn Foundation have started to shift their attention to RWAs as a promising avenue in the blockchain market. According to a report by global consulting firm Boston Consulting Group, the total value of the global RWA market, which reached $310 billion last year, is projected to surge to a staggering $16 trillion by 2030.“During the ongoing crypto winter, we are witnessing not only new funds pouring into blockchain projects but also existing funds leaving the market. We see RWAs as a potential solution to this,” said Seo Sang-min, Representative Director at Klaytn Foundation.Seo went on to explain that currently, virtual assets dominate most of the assets on blockchain mainnets like Klaytn, but compared to RWAs such as gold, cash, and real estate, their scale is very small. “We need to expand the utility of RWAs by placing them on the blockchain. Once they are, transaction costs will significantly decrease, and anyone will be able to trade 24/7 worldwide,” he said.Other blockchain experts at the conference also shared this sentiment. “Tokenizing RWAs is crucial because it provides investment opportunities that do not require large sums of money or lengthy waiting periods,” Luc Falempin, CEO of Tokeny Solutions emphasized. Beyond tokenizing the assets themselves, legal contracts and information about the various stakeholders involved, such as asset issuers and investors, can be recorded and shared on the blockchain, which can prove to be very convenient for investors.Revolutionizing investmentAccording to Falempin, most derivative investments involve seeking investment opportunities, creating portfolios, and enduring complicated processes for recovering investment capital that can take over ten years to complete. Additionally, ordinary investors often struggle to raise the substantial funds required for investment, creating high entry barriers. Also, investment contracts were traditionally executed on paper, which is outdated and inconvenient. However, as blockchain technology enables the tokenization of assets, these processes become much simpler.“Through RWA-backed virtual assets, even dozens of individuals can easily participate in investment, eliminating the hassle of dealing with paperwork. Introducing blockchain as a new infrastructure allows all stakeholders to easily view relevant records within the blockchain network,” he stated.The role of DAOsSo, how can investment products like RWA tokens be effectively managed within the decentralized realm of blockchain? Yoon Kim, Chief Marketing Officer of Elysia, mentioned decentralized autonomous organizations (DAOs) as a fit solution.“DAOs are a realistic method that is crucial for implementing the RWA model effectively. All stakeholders within a DAO can make modifications and creations, providing an avenue for managing tokenized assets effectively without government intervention,” Kim said.Technical hurdlesHowever, RWA tokens face several technical challenges. RWA products, which integrate the real world with the blockchain realm, could suffer from the so-called oracle problem, which refers to the inherent inability of blockchains to access external data, leading to a lack of information transparency. Even if the assets are stable, their prices on the blockchain network may differ from those in the real market. Currently, there are no established technical solutions to address these issues.“Rather than getting directly involved, we aim to move in accordance with market prices, but also seek ways to minimize risks with the help of external entities in certain cases,” said James Lim, CEO of Creder.As the crypto winter persists, the blockchain industry is looking towards RWAs as a beacon of hope, offering the potential to bridge the gap between traditional assets and the decentralized world of blockchain, despite the challenges that lie ahead.

South Korea’s FIU Faces Staffing Cuts Amid Crypto ChallengesThe Financial Intelligence Unit (FIU), a department operating under the South Korean Financial Services Commission (FSC), is downsizing its Virtual Asset Inspection Division, reducing its members from nine to seven, as reported by the local news outlet Etoday. The FIU has faced chronic understaffing for several years, and with the cryptocurrency market expanding and issues accumulating, there is growing concern within the industry about the possibility of a regulatory and supervisory gap.Photo by JEONGUK — on UnsplashTemporary division’s tenure extensionMeanwhile, the FIU seeks to extend the tenure of the temporary virtual asset inspection division, currently scheduled to operate from September 16, 2023, until June 30, 2024. Presently, this division comprises one rank 4 officer, four rank 5 officers, three rank 6 officers, and one rank 7 officer. However, the upcoming organizational changes will involve the removal of one rank 5 officer and one rank 6 officer. Moreover, the two temporary employees (one rank 5 and one rank 6), assigned specifically to examine and analyze financial transactions related to virtual assets, will be reduced to a single rank 5 officer.Understaffing and budget issuesAfter several years of grappling with staffing shortages, it appears that a decision has been made to actually reduce the overall number of FIU personnel. Last year, when the NPC of the National Assembly reviewed the budget of the FSC, it pointed out the shortage of FIU personnel. According to the NPC’s report on the FSC, as of 2022, the FIU’s capacity was 83 staff members. However, the current number stands at only 68, which includes 34 individuals who have been seconded from other agencies. Additionally, there are an additional 13 personnel whose positions are not represented in the organizational chart.The FIU’s spending on labor costs has consistently been lower than that of the FSC’s headquarters each year. Between 2017 and July 2022, the FIU used, on average, 83.71% of its allocated budget for labor costs. In contrast, the FSC had a higher average utilization rate at 89.2%. The NPC pointed out that this discrepancy is largely due to staffing imbalances between the two organizations, suggesting that a reevaluation of staffing levels may be necessary.The FIU has long been considered a less popular unit within the FSC. In recent years, the situation has become particularly challenging for the Virtual Asset Inspection Division, which has been swamped with various problems. This has led to a general reluctance among FSC staff to join this particular division.A person familiar with the matter told Etoday that departments within the FSC focusing on financial policy areas like insurance, banking, and capital markets have traditionally been the go-to choices for those aiming for promotions. However, the source added that there’s been a recent shift: more officers are now showing interest in joining the FIU, often with an eye toward transitioning into related industries after retirement.MOIS hesitant on permanent staffingMeanwhile, the Ministry of the Interior and Safety (MOIS) has been reluctant to make the FSC’s Financial Innovation Bureau and the FIU’s Virtual Asset Inspection Division permanent fixtures. While the FSC argues that solidifying these divisions would necessitate a larger staff and budget, the MOIS is holding back. According to another source, the staffing issue isn’t exclusive to the FIU; the FSC as a whole is understaffed. Despite the FSC’s desire to expand its workforce, the MOIS remains unwilling to approve the additional resources.Crypto professionals are worried that financial regulators are cutting back on staff even as challenges within the sector continue to mount. An official from a virtual asset exchange voiced frustration, pointing to the contrasting approach in neighboring Japan. The official noted that Japan is actively pushing to advance its Web3 sector by not only establishing a dedicated virtual asset department within its Financial Services Agency, but also by forming specialized task forces to address specific challenges. The official finds it baffling that Korea, on the other hand, is downsizing departments that tackle these important issues.