China Launches National Blockchain Center to Develop Talent

The Securities and Exchange Board of India (SEBI) is set to introduce a same-day settlement cycle starting March 28, making India only the second country, following China, to adopt such a system. This move comes amidst growing competition from the cryptocurrency sector, with SEBI Chairperson Madhabi Puri Buch emphasizing the need for instant settlement and tokenization to remain competitive.Photo by Big G Media on UnsplashEvolving market dynamicsBuch has unveiled plans aimed at enhancing the efficiency of India's capital markets through faster settlement processes. During a recent press conference, she highlighted the significance of adapting to evolving market dynamics. Buch stated:“If our well-regulated market cannot compete with the crypto world and cannot say we also offer you tokenization and instantaneous settlement over the medium term, I won’t even say long term, you should expect investors to move." The SEBI chairperson articulated that we live in a time where the current generation demands instant delivery of services. It’s with that in mind Buch believes that crypto is a threat to traditional financial markets. She stated:"Everybody wants instant everything. Right? So why should anyone believe that tomorrow if an alternative is available with instant settlement tokenization and they say the regulated market doesn’t offer it, you should expect people to move.” With a focus on meeting investor expectations for instant transactions, SEBI aims to bridge the gap between traditional capital markets and the rapidly evolving crypto landscape. Faster settlement cyclesIndia has been at the forefront of adopting faster settlement cycles, having transitioned to a one-day settlement (T+1) model between 2021 and January 2023. The optional same-day settlement, scheduled to commence later this month, represents another step towards enhancing market efficiency. However, Buch cautioned that further delays in embracing instant settlement could lead to a significant portion of the market shifting towards cryptocurrencies. The move towards faster settlement has been met with enthusiasm from some market participants. Indian business news publication Mint reported the comments of Shauryam Gupta, CEO of web trading platform Rupeezy, on the subject. Gupta stated: “The shift to instantaneous settlement is a substantial milestone, streamlining operations and cutting down on risk. The potential advantages of reducing counterparty risk and boosting liquidity signal positive growth for the sector.” However, others, particularly brokers, have expressed reservations. Brokers, who hold client funds and earn interest on balances, stand to see their interest earnings decrease with shorter settlement times. Nonetheless, SEBI remains steadfast in its commitment to modernizing India's capital markets to remain globally competitive. The regulatory landscape surrounding cryptocurrencies in India has been predominantly shaped by the nation's finance ministry and the Reserve Bank of India (RBI). While the RBI has been vocal in its opposition to cryptocurrencies, advocating for central bank digital currencies instead, SEBI's recent initiatives underscore its willingness to adapt to changing market dynamics. SEBI's efforts reflect a broader trend of regulatory bodies worldwide seeking to strike a balance between innovation and investor protection in an increasingly digital financial landscape. 

Banking giants in Turkey embrace crypto ahead of legislative changeIt remains unclear what the underlying environment for the further development of the crypto sector in Turkey will be until such time as the country introduces a legislative framework to shape the industry’s development. However, that fact is not deterring a couple of Turkey’s leading banks, who have decided to embrace the digital asset realm.Photo by Michael Jerrard on UnsplashStablex acquisitionOn Monday CoinDesk Turkiye reported that the investment arm of Turkish bank Akbank had acquired local crypto company Stablex. Stablex was founded in May 2020 by Jihad Shannak with the objective of providing professional services, including trading relative to cryptocurrencies in Turkey. Majority shareholding passed to Ak Investment in May of this year, with initial negotiations on the sale having commenced in August 2022.A high-ranking official at Ak Investment expressed the group’s ambition to become a pivotal figure in the digital asset realm, signaling a proactive approach to the evolving financial landscape. Akbank also banks the majority of crypto start-ups based in Turkey.Speaking about the acquisition recently, Akbank executive Mert Erdoğmuş stated:“We have invested in Stablex to respond to the need for reliable and innovative service in the cryptocurrency market. Stablex reflects our values with its experience in the sector, pioneering achievements and professional service approach.”BBVA crypto walletAlongside Akbank’s move into the digital assets arena, Garanti BBVA, Turkey’s second largest private bank, recently unveiled its crypto wallet app. The feature-rich application includes a cold wallet, empowering users to seamlessly send and receive assets such as bitcoin (BTC), USD Coin (USDC) and ether (ETH).The pilot project for the app commenced in August, with the application currently available on iOS. In bringing the app to market, the bank created Garanti BBVA Digital Assets, a dedicated subsidiary firm. Commenting on that development back in August, the subsidiary’s Chairman of the Board, M. Çağrı Süzer, stated:”Our research shows that customers significantly value trust in their crypto transactions and especially on its storage. Hence, we are happy to launch our Crypto Custody Wallet addressing these real needs.”Despite uncertainties, Turkey has firmly established itself in the global crypto landscape, ranking among the top 20 countries in Chainalysis’ Global Crypto Adoption Index 2023. The instability of the Turkish lira in recent years has been a driver for crypto adoption in the country. In recent days, the bitcoin unit price has reached its highest exchange rate level against the local sovereign currency.Earlier this week, it emerged that crypto platform Blockchain.com is adding headcount and has its sights set on expansion into Turkey as one of its growth opportunities.FATF-compliant regulatory approachTurkey’s regulatory stance has been to take a cautious approach. In 2021, the central bank restricted the use of crypto for payments, although a complete ban on digital assets was ruled out by officials.Looking ahead, a government official revealed plans for crypto legislation to be presented to Parliament in November. While details remain scarce, this legislative move aligns with Turkey’s broader strategy to exit the Financial Action Task Force’s (FATF) “gray list.”

Wemade Launches NFT-Based DeFi Service to Empower Its EcosystemSouth Korean gaming company Wemade today launched NFTFi, a peer-to-peer decentralized financial service based on non-fungible tokens (NFTs), according to an official press release. The service is now accessible on Wemade’s DAO-powered blockchain NFT platform NILE, also known as NFT Is Life Evolution.Photo by Choong Deng Xiang on UnsplashBorrow and lend NFTsInitially, NFTFi will enable users to borrow and lend NFTs, with plans to introduce a swap function in the future. The service will support trading for all NFTs available on the NILE marketplace, including the NEITH NFTs unveiled in March this year.Through NFTFi, borrowers have the ability to secure WEMIX tokens or WEMIX Dollars by using NFTs as collateral. Borrowers can request loans, and lenders can review these requests and assess the conditions under which they are willing to lend their assets.The borrower who presents the most favorable borrowing terms will be selected, and the loan contract will be automatically executed. The NFTs provided as collateral will remain locked until the loan is fully repaid. In the event of failure to repay, ownership of the NFTs will be transferred to the lender.Effective asset managementNFTFi users will have the ability to evaluate the value of an NFT based on various data. Notably, NEITH NFTs offer effective asset management as their holders can claim the amount of WEMIX tokens at any time from the Covenant Date. This token eligibility feature contributes to the stability of NEITH NFTs.NILE expects that NFTFi will enhance the value of NFTs as financial assets and play a role in the sustainable growth of the WEMIX3.0 ecosystem.