Chinese tech groups pause Hong Kong stablecoin plans amid regulatory scrutiny

Huobi Rebrands as HTX to Mark Tenth AnniversaryIn a move marking its 10th anniversary, Seychelles-registered cryptocurrency exchange Huobi has decided to rebrand itself as “HTX.”Rebranding confusionIn crypto-centric discussions on social media, the decision has sparked controversy and raised eyebrows, drawing comparisons to the now-defunct exchange FTX.The announcement of Huobi’s rebranding to HTX was made on Wednesday. According to the company, the new name is a combination of symbolic elements. The “H” represents the first letter of “Huobi,” the “T” is a nod to Justin Sun’s blockchain project Tron, and the “X” stands for the exchange itself.Alternatively, some interpret “HT” as a reference to the exchange’s native Huobi Token (HT), while the “X” symbolizes the Roman numeral for 10, commemorating the company’s 10th anniversary. Huobi’s new slogan accompanying the rebranding is “HTX, Just Trade It.”Before the official announcement, Huobi changed its social media account names to align with the new brand. The exchange’s Twitter handle is now HTX_Global, and its official Telegram group is named “HTXglobalofficial.” As of the time of writing, the website domain still retains the original Huobi name.Photo by Kate Trysh on UnsplashFTX comparisonsThe rebrand immediately drew attention on social media. In one of a range of similar comments, a user lined up the Huobi logo next to that of FTX and wrote: “I think I’ve seen this movie before.” Although a matter of speculation, there has been some chatter on social media in recent weeks, questioning the health of the Huobi business. It didn’t help the firm that in August, rumors swirled that some of the company’s executives were subject to an investigation by Chinese authorities.This isn’t the first time a crypto-related entity has seemingly borrowed part of its name from FTX. In January, the founders of the collapsed cryptocurrency hedge fund Three Arrows Capital announced plans to raise $25 million for a proposed crypto exchange called “GTX.” Huobi’s rebrand has amused some FTX creditors who had faced criticism from some in the crypto sector for wanting to resurrect the business while maintaining the same branding.In early August, Huobi refuted reports suggesting insolvency and the arrest of senior executives by Chinese authorities. Additionally, the exchange had previously been ordered to cease operations in Malaysia following regulatory actions by the country’s securities regulator in May.International marketing effortHuobi’s rebranding to HTX has undoubtedly stirred debate and curiosity within the cryptocurrency community. Justin Sun, an advisor to the project, stated at a media briefing at Token 2049 in Singapore that the HTX brand will be marketed towards Huobi’s international English-speaking users.Sun said: “It’s very hard for foreigners, Westerners, to pronounce ‘Huobi’… It doesn’t make any sense to them,” Sun said, explaining that the word Huobi means fire and coin in Chinese. “That’s why we rebranded as HTX for international branding.”As the crypto industry continues to evolve, it remains to be seen how this new identity will impact Huobi’s reputation and standing in the market. Regardless, the crypto world is known for its surprises, and Huobi’s marketing move serves as a reminder that the industry is in constant flux, filled with unexpected developments.

Solomon Islands partners with Soramitsu on CBDC pilotCentral bank digital currency (CBDC) development has been ongoing globally at a brisk pace in 2023 and smaller nations, like the Solomon Islands with a population of over 700,000, are no exception when it comes to that process with the introduction of Bokolo Cash.Photo by Gilly Tanabose on UnsplashIntroducing Bokolo CashSolomon Islands Central Bank (CBSI) has officially unveiled the proof-of-concept for its CBDC named Bokolo Cash, with support from Japanese blockchain firm Soramitsu. Bokolo Cash is pegged to the value of one Solomon Islands dollar.The proof-of-concept pilot was launched on Tuesday by way of a keynote speech given by Manasseh Sogavare, the prime minister of the archipelago. In that speech, Sogavare highlighted that the CBDC would lead to reduced transaction costs for citizens and businesses. Users can rely on transactions to be both secure and transparent, given that the network will be blockchain-based.The prime minister also articulated that the CBDC pilot project would be a catalyst for financial inclusion relative to the Island nation’s remotest communities.Pilot scheme use casesParticipants in the project will have the opportunity to use it in various scenarios. From retail transactions in the capital city, Honiara, to person-to-person transfers, the CBDC aims to demonstrate its versatility. The proof-of-concept will also assess wholesale transfers between commercial banks, simulate cross-border payments and examine remittances. To ensure security and compliance, users will undergo a “two-step” Know Your Customer (KYC) verification process, as outlined by Soramitsu.Operating on a customized blockchain based on Hyperledger’s Iroha, Bokolo Cash is designed for local use. However, it will also integrate with Soramitsu’s public Sora blockchain. This connectivity will enable users to engage in transfers using QR codes and the self-custody Fearless Wallet, a creation of Soramitsu.Legislative changeAlthough the project commenced at the beginning of November, the official announcement was made earlier this week. The legislation required to enable the CBSI to issue the CBDC — CBSI (Amendment) Act 2023 — was enacted on Nov. 3.The Solomon Islands, a collection of over 900 islands situated west of Papua New Guinea, now joins a group of island nations, including the Marshall Islands and Mauritius, actively experimenting with CBDC. Palau collaborated with Ripple Labs back in July to introduce the Palau Stablecoin (PSC). Interestingly, Tonga has contemplated adopting Bitcoin as legal tender, while Vanuatu hosts Satoshi Island, known for its Bitcoin-friendly environment. Meanwhile, Eastern Caribbean countries have already implemented an official CBDC called DCash.Soramitsu has been active in collaborating with central banks relative to the introduction of CBDCs, particularly in Asia. It has played a key role in facilitating the issuance of the Cambodian Bakong and the Lao DLak in Laos. Furthermore, it has initiated a project for regional cross-border payments using the Bakong and a stablecoin.In 2022, Soramitsu completed CBDC-related feasibility studies in conjunction with the relevant authorities in Vietnam and the Philippines. The Japanese fintech company has also participated with the Asian Development Bank and Tokyo-based global information technology solutions firm Fujitsu on a Web3 development project.

Japan’s Financial Services Agency (FSA) is advancing proposals to authorize exchange-traded funds (ETFs) backed by specific cryptocurrencies, a move that fleshes out previously reported plans to apply a flat 20% separate tax to crypto gains. According to agency materials released on Dec. 26 and reported by CoinPost, the regulator has now clarified that crypto-linked ETFs and derivatives will be integrated into this new tax framework.Photo by Jakub Żerdzicki on UnsplashThe materials, part of the tax reform framework for the fiscal year 2026, indicate that the regulator intends to align the tax treatment of crypto-linked ETFs with that of stocks and foreign exchange trading. Under the current system, cryptocurrency gains in Japan are classified as miscellaneous income, subjecting investors to progressive tax rates that can reach approximately 55% when local levies are included. The proposed reforms aim to integrate crypto assets into the Financial Instruments and Exchange Act (FIEA), a legislative package slated for debate during the 2026 Diet session. Derivatives also subject to separate taxBeyond ETFs, the regulator plans to adjust the taxation of derivative products based on certain crypto assets. While these derivatives would remain classified as miscellaneous income—similar to conventional futures—the method of taxation would shift from comprehensive taxation to a separate self-assessment model. Despite the outlined tax reductions, market observers anticipate that full implementation may be delayed until 2028 due to the time required to amend the relevant laws and government ordinances. FSA restructures to better oversee cryptoIn parallel with regulatory updates, the FSA is restructuring its internal operations to better address digital finance. Nikkei reported that the agency has decided to elevate its Crypto-Assets and Blockchain Innovation Office to the status of a division beginning in the administrative fiscal year starting July 2026. This restructuring follows an August proposal in which the FSA cited the need to bolster its capacity to handle financial services transformed by financial technology, crypto trading, and generative artificial intelligence (AI). The agency noted that it faces accumulating challenges, including fraud prevention and the government's broader goal of positioning Japan as a leading asset management nation. Additionally, the establishment of a new Asset Management and Insurance Supervision Bureau is expected as part of the reorganization. The regulatory shifts coincide with broader efforts to integrate blockchain technology into Japan's financial infrastructure. A separate Nikkei report last week stated that policymakers have agreed to prepare for the issuance of local government bonds as blockchain-based security tokens. The government plans to submit the necessary legislation during the next ordinary Diet session, aiming to streamline settlement processes and enable real-time monitoring of investor data. Corporate crypto strategies persist despite concernsIn the private sector, Tokyo Stock Exchange-listed Metaplanet is proceeding with a corporate strategy focused on Bitcoin accumulation. Dylan LeClair, the company's Director of Bitcoin Strategy, said on X that shareholders at an extraordinary meeting approved proposals to raise capital for additional Bitcoin purchases, including the issuance of Class B preferred shares to overseas institutional investors. Earlier this year, Metaplanet shareholders authorized a long-term plan to acquire more than 210,000 Bitcoin by 2027, representing roughly 1% of the total supply. However, analysts warn that corporate models based primarily on asset accumulation face structural risks. According to Cointelegraph, industry figures such as MoreMarkets CEO Altan Tutar and Solv Protocol co-founder Ryan Chow have cautioned that companies relying solely on digital asset holdings may struggle to maintain valuations without developing operational businesses that generate consistent returns.