Yat Siu: Hong Kong’s Crypto Adoption Sanctioned by the Mainland

Oman’s Crypto Mining Expansion Signals Further Economic DiversificationOman has recently unveiled a state-of-the-art digital asset mining facility, as it continues in its quest to diversify its economy beyond oil exports.$150 million facilityThis cutting-edge mining facility was recently inaugurated, valued at around 135 million Omani rials, approximately $150 million, as a result of collaboration between Exahertz, an Omani company, and Moonwalk Systems, a Dubai-based blockchain solutions firm.Situated within the Salalah Free Zone, a hub that offers tax benefits to corporate entities, the facility is powered by mining hardware provided by leading Chinese mining equipment manufacturer Bitmain Technologies and is primed to house 2,000 machines, making for an 11-megawatt facility.Photo by Anusree Mohan on UnsplashExpansion plansSam Ferdows, the CEO of Moonwalk Systems, hailed the project, emphasizing the company’s dedication to expanding the facility’s capacity. Ferdows shared that plans are already in motion to increase the mining operation’s capacity to accommodate 15,000 miner units by October, with aspirations to expand to multiple cities. Recognizing the importance of corporate social responsibility relative to sustainability, Moonwalk Systems aims to train citizens through dedicated programs, further promoting the growth of the digital asset sector.Engineer Said Hamoud, Oman’s Minister of Transport, Communications, and Information Technology, who led the inauguration of the project, underscored its significance as a pivotal step in the nation’s digital transformation. He expressed confidence that the new mining facility would contribute to Oman’s growing digital economy.Second mining projectThis marks Oman’s second major move into the cryptocurrency mining space within nine months. Back in November 2022, the country inaugurated its first mining facility with a price tag of approximately $389 million. The combined investment in these ventures totals $740 million, which aligns with the broader regional push toward embracing the opportunities presented by blockchain and Web3 technologies.In the Middle East, several governments are actively investing in blockchain-related infrastructure. The United Arab Emirates, a neighbor to Oman, has notably begun to accept applications from Web3-related companies. The Virtual Assets Regulatory Authority (VARA), the local regulator in Dubai, has rolled out comprehensive regulatory directives that govern licensing requirements, company operations, and compliance.Oman, for its part, is not just focusing on infrastructure. It is also addressing regulatory aspects by requiring registered digital asset firms to establish a presence within the country. Evidence of those efforts emerged earlier this month when the Omani regulator, the Capital Market Authority (CMA), invited public feedback on a consultation paper that feeds into the development of a virtual asset regulatory framework in Oman. This versatile approach suggests that the Sultanate is making a conscious commitment to fostering a thriving blockchain ecosystem within the country.As Oman attempts to position itself as a regional blockchain hub, it recognizes the transformative power of cryptocurrencies and blockchain technology in propelling its economy forward. On that basis, the Middle Eastern country is making a resolute pivot from its oil-based past to a blockchain-enabled future.

The Seoul Metropolitan Government has launched a new initiative designed to help South Korean fintech firms expand into global markets. According to a Nov. 18 press release, the city and its blockchain partner, Catalyze Research, will utilize the XRP Ledger (XRPL), Ripple Labs’ public blockchain, to provide technology-focused mentorship and facilitate networking with overseas partners.Photo by Kanchanara on UnsplashFunding for global growthParticipating startups are eligible to receive up to $200,000 each, with the total funding pool capped at $1.8 million. The Seoul government anticipates that this initiative will assist early-stage ventures in establishing a meaningful presence in the global marketplace. Selected participants will receive mentorship from Catalyze Research on entering the blockchain ecosystem via the XRP Ledger, refining business models, and developing multichain strategies. The program is open to applicants working in a variety of specific sectors, including blockchain payments, asset tokenization, cross-border transfers, decentralized identifiers (DIDs), decentralized finance (DeFi), and regulatory technology. Beyond the core business training, Seoul is offering technical workshops that allow participants to explore complex topics such as XRPL-based issuance, liquidity configuration, fee optimization, and security architecture in greater depth. Follow-up support programs will continue to assist participating ventures after the initial phase, offering help with investor relations and jurisdiction-specific regulatory consulting. Pilot projects with overseas partners are also planned to further support company growth. The capital’s move to back crypto ventures follows its recognition in the Global Financial Centres Index (GFCI), produced annually by the London-based think tank Z/Yen and the China Development Institute (CDI). In the latest report released in September, Seoul ranked eighth in fintech among 135 cities. Price swings amid XRP ETF debutsWhile the city pushes to grow the country’s blockchain sector, XRP, the native asset of the XRP Ledger, has faced market headwinds. According to CoinMarketCap data, the token’s price dropped more than 15% over the past week amid a broader market downturn. This decline came even after the Nov. 14 launch of XRPC, a Canary Capital–managed ETF that is the first in the U.S. to track the spot price of XRP. Subsequently, the Bitwise XRP ETF is also set to debut on the New York Stock Exchange on Nov. 20. Amid the recent price weakness, XRP’s retail positioning offers a more nuanced backdrop. Glassnode’s Nov. 19 update estimates the average retail cost basis for the token at roughly $2.17, putting the typical holder about 61% in profit. The firm’s analysis a day earlier showed, at the network-wide level, 58.5% of the total supply in profit and 41.5% held at a loss—a structure that the firm said reflected a market dominated by recent buyers and prone to volatility.

India’s digital currency transactions have surged, surpassing 1 million daily transactions in December, meeting the Reserve Bank of India’s (RBI) ambitious target set for the end of 2023.Photo by Julian Yu on UnsplashCBDC-based employee paymentsReuters cited three sources familiar with the matter who have revealed that Indian banks played a crucial role in achieving this milestone by disbursing certain employee benefits through the central bank’s digital currency (CBDC), known as the e-rupee. As Indian crypto influencer and YouTuber Sumit Kapoor put it, the transaction level increase “happened because people working in regular banks were encouraged to use digital rupees instead of the normal money for their deposits and benefits.” RPI letter confirms increaseA letter seen by CoinDesk sent by the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, to RBI staff on Dec. 29 confirmed the increased CBDC use, stating that it “exceeded the milestone of 1 million transactions in a day on Dec. 27, 2023.” The e-rupee, developed as a digital counterpart to physical cash, utilizes distributed ledger technology. The RBI initiated the e-rupee pilot in December 2022, initially recording an average of 25,000 daily transactions by the end of October. Despite its integration with the Unified Payments Interface (UPI), a popular framework for mobile app-based peer-to-peer money transfers, the transaction volume saw a substantial increase last month. Union Bank paymentsAccording to India’s Economic Times, the Union Bank of India is working towards transferring claims related to a number of employee benefits to CBDC wallets rather than the accounts of those salaried employees. Union Bank stated: “With an aim to promote CBDC wallet transactions, banks have been advised to encourage all staff members to transact using the digital currency and ensure 100% staff registration on digital rupee app.” Other banks have been playing their part in the current transaction level surge. This has included major private and state-run lenders such as HDFC Bank, Kotak Mahindra Bank, Axis Bank, Canara Bank and IDFC First Bank. These institutions disbursed employee benefits directly into CBDC wallets rather than traditional salary accounts, demonstrating a significant shift in adoption patterns. The RBI anticipates that non-financial firms will follow suit, contributing to a further boost in transaction volumes. The user base for the e-rupee has also witnessed steady growth, reaching approximately 4 million users, up from 3 million in December, according to an executive familiar with the pilot. Globally, several countries, including China, France and Ghana, are in the pilot stages of their central bank digital currency (CBDC) projects. Nigeria has rolled out its digital currency, although success has been limited despite offering incentives such as discounts on auto-rickshaw rides. To incentivize e-rupee transactions, Indian banks are offering rewards, aligning with the RBI’s push to enhance transaction volumes. Sharat Chandra, co-founder of the India Blockchain Forum, commended the move to compensate employees using CBDC and suggested expanding adoption incentives to other areas, such as toll tax collections, to further encourage widespread usage. The positive momentum in India’s digital currency landscape reflects a growing trend toward embracing innovative financial technologies.