Korea’s DAXA Prohibits Relisting of Delisted Cryptos for a Year

BOCI Partners with UBS in Hong Kong on First Tokenized NotesIn a groundbreaking move, the investment arm of the Bank of China (BOCI), has partnered with Switzerland-headquartered global financial services company UBS, to issue tokenized notes in Hong Kong.Photo by Eric Prouzet on UnsplashHong Kong’s first tokenized notesThis marks the first instance of a Chinese financial institution issuing a tokenized note in the region. Leveraging the power of blockchain technology, the notes were tokenized on the Ethereum blockchain. UBS announced the milestone development via a press release published to its website on Friday.The Swiss banking giant has some expertise in this area, having first issued a tokenized fixed rate note in December 2022, recorded on a permissioned blockchain and established under English and Swiss law. On this occasion, the Hong Kong-issued tokenized notes will be compliant in terms of both Swiss and Hong Kong law.The issuance of these tokenized notes involved a significant amount, with BOCI issuing 200 million Chinese yuan worth of notes, equivalent to approximately $28 million. The collaboration with UBS aims to simplify digital asset markets and products for customers in the Asia Pacific region, specifically by developing blockchain-based digital structured products tailored to their needs.Ying Wang, Deputy CEO at BOCI, expressed enthusiasm for the digital transformation and innovative development of Hong Kong’s financial industry, recognizing the evolving digital economy in the region. Wang expressed the view that the development puts BOCI “at the forefront of innovation in technology finance and digital finance.”She sees the UBS collaboration as a means of driving “the simplification of digital asset markets and products, for customers in Asia Pacific through the development of blockchain-based digital structured products, designed specifically for customers in Asia Pacific.”Embracing digital assetsHong Kong has been actively working towards establishing itself as a hub for cryptocurrencies. Paul Chan Mo-po, the Chinese autonomous territory’s Financial Secretary, has emphasized the region’s intention to embrace regulation in this domain. Despite recent fluctuations in the virtual asset market and the closure of certain virtual asset exchanges, Chan remains optimistic about the prospects of Web3 and believes it is the opportune moment to drive its advancement.This month, Hong Kong lifted its ban on crypto retail trading and encouraged crypto exchanges to seek licenses within the region. The Securities and Futures Commission (SFC) has introduced exchange guidelines, leading firms such as Huobi, OKX, and BitMEX to express their intentions to apply for licenses in Hong Kong. Furthermore, in light of the recent lawsuit filed by the SEC against Coinbase, Hong Kong legislator Johnny Ng extended an invitation to the exchange to establish a hub in Hong Kong.The collaboration between BOCI and UBS is significant as unlike UBS’ previous tokenized note project which was established on a permissioned blockchain, this Hong Kong-based project is making use of Ethereum. By issuing tokenized notes on the Ethereum blockchain, these institutions are exploring the decentralized potential of digital assets and paving the way for further innovation in the Asia Pacific region.

Japanese financial services company SBI Holdings has successfully established "SBI XDC Network APAC" in Japan, following through on an intended joint venture with TradeFinex, the driving force behind the XDC Network.Photo by William Warby on UnsplashJV company formationAt the end of September, the two companies outlined the starting point of an intended collaboration. Only three months later, SBI has come back with an update, a press release published on Dec. 27, to detail the progress that has been made thus far. According to that document, the companies established joint venture corporate entity SBI XDC Network APAC Co. Ltd. on Dec. 18. Among the directors of the new company is the President of BITPoint Japan, a wholly owned subsidiary crypto exchange business of SBI. Majority stakeholderSBI will be the majority stakeholder in the venture, holding 60% of the company’s shares while Dubai-based TradeFinex will be the minor partner, with a 40% shareholding. The press release outlines that the stakeholders will “work to expand the use case using the blockchain technology of the XDC Network in global economic activities centered on trade finance and cross-border payments, not just the handling of tokens.” With that, this enterprise-focused blockchain initiative aims to elevate the efficiency of trade finance. Going forward, it endeavors to broaden the applications of XDC Network's blockchain technology in global economic activities, with the emphasis remaining on trade finance and cross-border payments. The XDC Network, inaugurated in 2017, is a community-driven platform tailored explicitly for trade finance and payments. It introduces a smart contract system that streamlines global trade operations by tokenizing real-world assets (RWAs) such as bonds, trade assets and trade documents. Operating on a high-speed, secure and cost-effective blockchain, XDC Network aspires to transform the landscape of trade finance. SBI Group has been actively involved in various services related to the XDC Network, including being the first exchange in Japan to handle XDC tokens. This was made possible through a partnership with SBI VC Trade, a company within the SBI Group specializing in crypto asset exchange services. Corda platform proof of conceptLogo design has been completed for the new entity, while a website has also been launched. Not wasting any time, the new company has already initiated a proof-of-concept (PoC) experiment. The experiment involves connecting the XDC Network with the Corda platform from SBI R3 Japan and the Corda Bridge from IMPEL GLOBAL. The PoC experiment revolves around conducting fiat payments generated by business-to-business transactions in XDC via Corda and the Corda Bridge. Leveraging a hybrid blockchain with both private and public characteristics, the objective is to attempt to offer a seamless one-stop service that settles both private and public aspects simultaneously. The company claims that this approach achieves an efficient and smooth payment method for cross-border transactions, including international trade, outshining conventional fiat currency transactions. 

NS Studio and Factor Labs to Enhance Military Security with Blockchain TechnologyKorean game developer NS Studio announced on Thursday its collaborative research effort with blockchain-based security solutions company Factor Labs to boost the security system of its specialized virtual reality simulator used in military training centers and multinational security firms.Photo by Filip Andrejevic on UnsplashProtecting special combat forcesThe two companies signed a memorandum of understanding (MOU) to develop a blockchain-based security system to be integrated into military training equipment that aims to safeguard the identity and behavioral data of special combat forces. Factor Labs’ security technology and blockchain expertise will be integrated into NS Studio’s military training programs, facilitating safer training sessions.“Given the fact that special combat forces are important assets whose identities are considered national secrets, we want to amp up the security of the simulation programs that keep a record of their identities and behavioral patterns using blockchain technology,” the two companies said in a joint statement.“We have begun developing the necessary technology for this project and are preparing to implement the security program starting in the latter half of this year.”Blockchain’s role in military securityThis collaboration underscores the increasing role of cutting-edge technologies like blockchain in ensuring the security and privacy of sensitive data not just in the financial context but also in military and security contexts. The combined efforts of NS Studio and Factor Labs are poised to contribute to the advancement of secure training simulations for special operations personnel.