Japan to classify crypto as financial instruments, seeks 20% tax rate

WEMIX PLAY Launches NFT Auction ServiceWEMIX PLAY, the global blockchain gaming platform operated by South Korean gaming publisher Wemade, has officially launched its non-fungible token (NFT) auction service dubbed “Drops”.Photo by Choong Deng Xiang on UnsplashNFT biddingDrops will serve as a platform for auctioning game NFTs and special NFTs, catering to the growing demand for unique digital collectibles. Auctions on Drops will follow an English auction format where the highest bidder wins, which is also used on NILE, a decentralized autonomous organization (DAO) and NFT platform based on the company’s decentralized blockchain network WEMIX3.0. Users can participate using WEMIX dollars (WEMIX$), the official stablecoin issued on the WEMIX3.0 mainnet.The first three games to launch NFTs on Drops are Melting Earth, Ballies, and Yield KingZ. Melting Earth collections are currently available for sale online, and the latter two will be released soon, according to WEMIX PLAY.Revolutionizing GameFiThe company’s introduction of Drops reflects the growing popularity and value of NFTs within the gaming world, providing gamers and collectors with an opportunity to acquire unique and rare in-game assets through an accessible and transparent auction platform, thus offering a more interactive gameplay experience while leading innovation in the gaming finance (GameFi) sector.

Indian multinational technology firm Jio Platforms, a subsidiary of India’s largest private sector company, Reliance Industries, has launched JioCoin, a rewards-based token, on the Polygon blockchain. While Jio Platforms has yet to make an official announcement related to JioCoin, Kashif Raza, the founder of Indian crypto education startup Bitinning, took to the X social media platform on Jan. 16 to highlight his discovery that JioCoin had been launched and that the tokens could be accumulated via the JioCoin Wallet, a Web3 wallet. Polygon Labs partnershipLast week, it emerged that Jio Platforms had entered into a partnership with Polygon blockchain developer Polygon Labs. Polygon co-founder Sandeep Nailwal told Cointelegraph that Polygon Labs intends to support Jio to enable blockchain integration across a spectrum of Jio applications. In a follow-up post, Raza provided a more detailed account of the offering. The crypto educator explained that the token “is a mechanism to reward internet users for surfing the internet on the JioSphere browser.”Photo by GuerrillaBuzz on UnsplashUse case speculationOn that basis, it’s likely that the emergence of JioCoin is the first demonstration of one of the outcomes of that collaboration.  In the absence of an official announcement and a specific clarification of the intended use case for JioCoin, Raza speculated that its likely use case will be to act as a currency within the Jio network. He explained that within Jio’s sphere, thousands of companies are interacting with each other. Raza speculated that in the future, users would be able to use JioCoin to pay for gas at gas stations or renew mobile phone services. Jio’s parent company operates a network of gas stations in partnership with BP. He believes that JioCoin could potentially give Jio an edge in competing with other internet browser providers like Google, Brave and Microsoft, while suggesting that Reliance Industries group companies could run one of the most significant rewards programs in the world via JioCoin. Polygon adoptionIndian venture capitalist and blockchain enthusiast Aditya Singh suggested that the move will help Polygon from an awareness and adoption perspective. However, he outlined that while this is a big deal, it’s not the first time that Polygon has struck big-name partnerships, having done so in the past with Meta, Disney, Nike, Adidas, Adobe, Reddit and others. Raza believes the partnership provides significant validation for Polygon, given Jio's reputation. He suggested that, as a consequence, other large Indian corporations may choose to launch an ecosystem coin on the Polygon blockchain. If JioCoin fulfills its potential and turns out to be a success, the Polygon network will see a significant rise in the overall number of transactions processed. In a similar vein, Jio could bring a substantial user base to Polygon.  While Singh and Raza see JioCoin as a largely positive development, its introduction hasn’t occurred without criticism. Author and crypto analyst Sunil Aggarwal took to social media to warn the community to investigate the token further before automatically assuming it to be a huge milestone for Polygon and crypto generally. He cited concerns related to the transparency and integrity of the token offering.

RBI Official Encourages Indian Banks to Adopt BlockchainIn a recent conference organized by the Reserve Bank of India (RBI), Deputy Governor Mahesh Kumar Jain highlighted the importance of adopting innovative technologies like artificial intelligence (AI) and blockchain to ensure sustainable growth and stability in the country’s banking sector.Speaking at the RBI-hosted event for directors of Indian banks last week, Jain emphasized the need for effective corporate governance, governance structure, and risk management strategies to tackle future challenges arising from technological disruptions, evolving customer expectations, and cybersecurity threats.Photo by rupixen.com on UnsplashLeveraging AI and blockchainThe recommendation to leverage AI and blockchain technologies aligns with India’s digital transformation goals and the desire to enhance customer experiences while investing in cybersecurity measures. Jain advised Indian banks to prepare for the future by focusing on digital transformation, exploring innovative technologies like AI and blockchain, and seeking collaborative opportunities with other industry players. He also emphasized the importance of upskilling the workforce to meet the demands of the digital era.Inconsistent approachThis proposal comes at a time when the Indian government’s stance on cryptocurrencies remains ambiguous. While India has been exploring the introduction of a central bank digital currency (CBDC), the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, which aimed to establish regulations for digital currencies, has not been legislated.According to the RBI’s annual report, which was published on Tuesday, the central bank is progressing with its retail central bank digital currency (CBDC) pilot program, with plans to expand the number of banks involved, the use cases, and the number of locations. It had expanded the scope of the project to involve one million citizens, but it’s looking to broaden that user base also. In contrast, the country’s approach to decentralized cryptocurrency has been contradictory, sometimes banning it and at other times, allowing it.It is noteworthy that India’s neighbor, Pakistan, has also recently announced plans to train one million IT graduates in AI by 2027, with potential applications in weather prediction, agriculture supply chain optimization, and health services transformation.The RBI’s recommendation to adopt AI and blockchain technologies reflects the growing recognition of their potential benefits for the banking sector.Embracing tech innovation in bankingBy embracing these technologies, Indian banks can enhance efficiency, automate processes, and strengthen security measures. The adoption of AI and blockchain has the potential to transform various aspects of banking, including risk management, fraud detection, customer service, and transaction processing.While India continues to navigate the regulatory landscape surrounding cryptocurrencies, the central bank’s focus on AI and blockchain signals its commitment to embracing technological advancements and preparing the banking sector for the future. As India’s financial ecosystem evolves, the adoption of these technologies can empower banks to offer innovative services, streamline operations, and provide secure and efficient financial solutions to customers.The RBI’s emphasis on digital transformation, AI, and blockchain paves the way for Indian banks to explore new avenues for growth and resilience. As the country progresses on its digital journey, the adoption of emerging technologies will play a pivotal role in shaping the future of the banking sector and contributing to India’s overall economic development.