Korbit relists blockchain gaming token WEMIX

Standard Chartered Bank Hong Kong, a licensed bank and subsidiary of British multinational banking group Standard Chartered, has partnered with local companies to launch a Hong Kong dollar-based stablecoin in the Chinese autonomous territory.Photo by Chapman Chow on UnsplashJoint venture formed In a press release published by Animoca Brands, a blockchain-based gaming and Web3 venture capital firm based in Hong Kong, the company outlined details of the partnership between it and Standard Chartered, alongside Hong Kong Telecom (HKT), Hong Kong’s dominant fixed-line, mobile and broadband telecommunications firm. The partnership has been structured as a joint venture between the three companies, with the objective of launching the Hong Kong dollar-backed stablecoin. Local regulator and central bank, the Hong Kong Monetary Authority (HKMA) has been working towards implementing a regulatory framework specifically dedicated to stablecoins.  Legislative framework incoming As of the end of 2024, proposed legislation that would enable such a framework had advanced to Hong Kong’s Legislative Council. Before the bill can be enacted into law, the legislative process requires three readings of the bill accompanied by a series of debates and the scrutiny of lawmakers.  Once the legislation has been signed into law, it will require stablecoin issuers to obtain a license from the HKMA. In the case of this particular joint venture, the promoters plan to apply for a license in due course. Standard Chartered is already deeply embedded in Hong Kong’s financial system, making this latest development all the more significant. Alongside HSBC and Bank of China (Hong Kong), Standard Chartered issues the local currency, the Hong Kong dollar. That activity is carried out under the oversight of the HKMA.  The HKMA launched a sandbox environment relative to stablecoins in order to provoke an exchange of views between the regulator and market participants. The three parties to this latest joint venture have been sandbox participants since July of last year, alongside JINGDONG Coinlink Technology and RD InnoTech. JINGDONG declared its intention to launch a Hong Kong dollar-backed stablecoin last year. RD InnoTech plans to launch the HKDR stablecoin in conjunction with HashKey Exchange. Stablecoins ‘starting to eat the world’Earlier this month, Rene Michau, Standard Chartered’s global head of digital assets, set out the bank’s thoughts on stablecoins in an article published on the company’s website and co-authored by Circle Chief Financial Officer (CFO) Jeremy Fox-Green. Within it, Standard Chartered recognized the potential of stablecoins, suggesting that they are key to unlocking a future where blockchain acts as a new “internet of money.” The article went on to state that it is critical for stablecoin issuers “to maintain deep connections with strong banks and for those banks to be building digital asset capability.” The company recognizes that stablecoins are “starting to eat the world,” referring to a global stablecoin circulation that has already surpassed $100 billion.  Evan Auyang, President of Animoca Brands, pointed out that “we are still in the early stages for mass adoption of stablecoins across retail, enterprises and institutions.” He added that Hong Kong has a bright future as a global Web3 hub. Susanna Hui, Managing Director at HKT, believes that “issuing an HKD-linked stablecoin will enhance payment efficiency, streamline transactions, and provide greater security and transparency through advanced Web3 innovations.”

According to a report published on March 31 by Nikkei, a Tokyo-based financial news outlet, the Japanese authorities are gearing up to categorize digital assets as financial products, while in the process broadening the scope of insider trading restrictions. While the publication didn’t cite a particular source, it reported that the Japanese Financial Services Agency (FSA) is expected to file a draft amendment related to the existing Financial Instruments and Exchange Act in 2026.Photo by M.S. Meeuwesen on UnsplashFrom payment to investment productCurrently, Japan’s Payment Services Act categorizes crypto assets as a means of settlement. That categorization looks at these assets from the perspective of a payment tool rather than considering them as investment products. The move is understood to be part of a broader effort to copper-fasten crypto sector oversight. Earlier this month, the Japanese cabinet approved a proposal that seeks to amend the Payment Services Act.  At the time, it had been suggested that the amendment would look to exclude crypto assets from being classified as securities, while also bringing about a reduction in the capital gains tax rate as it is applied to digital assets. It’s likely that crypto assets will find themselves in a distinct category, apart from securities like stocks and bonds. Crypto adoptionActivity related to crypto assets has been growing in Japan. 7.34 million active accounts were found to be responsible for crypto transactions in Japan in January. That amounts to a tripling in such crypto transaction activity over the course of five years. Japan enjoyed greater adoption at a very early stage in the global development of crypto. However, following the Mt. Gox crypto exchange collapse in 2014, which at the time accounted for the loss of 7% of Bitcoin’s supply, regulators responded by clamping down on the sector.  That situation led to greater investor protection for Japanese investors but it presented as a difficulty for Japan-based exchanges to compete globally with other exchange businesses overseas. A conservative stance taken by the FSA has also held back crypto exchange-traded fund (ETF) approval and adoption. Bitcoin ETFs were approved in the United States over a year ago. Earlier this month, Astar Network founder Sota Watanabe outlined that the current ruling party in Japan plans to remove crypto assets from a securities classification, alongside other changes which could potentially lead to the approval of crypto ETFs. The Liberal Democratic Party has also put forward crypto tax reforms that, if implemented, would see a 20% tax rate brought into effect where capital gains on digital assets are concerned.The finer detail with regard to the nature of insider trading restrictions as they will be applied to crypto assets has yet to be revealed. Nikkei speculated that such restrictions would likely be similar to those applied to conventional financial products. Last week, the Asia Web3 Alliance Japan, a crypto advocacy group, put forward a proposal to the U.S. Securities and Exchange Commission (SEC) that, if implemented, would see collaboration between the U.S. regulator and Japan’s FSA, its central bank and the Ministry of Economy, Trade and Industry. The objective of the proposal is to bring about cross-border regulatory clarity related to the further development of the Web3 ecosystem in both Japan and the U.S.

India is strategically navigating the development of its digital rupee, with the Reserve Bank (RBI) actively addressing privacy concerns through technological solutions in its central bank digital currency (CBDC) pilot programs. According to a recent report by CoinDesk, a senior official with insights into these initiatives revealed that while progress is evident, the RBI is proactively exploring ways to ensure privacy in the use of the digital rupee.Photo by Julian Yu on UnsplashPursuing mechanisms to maintain anonymityThe RBI has introduced a new dimension to the discourse on privacy concerns associated with CBDC usage. The central bank official suggested that the RBI may seek legal backing from India’s finance ministry to enact legislation allowing customers to delete transactions for the purpose of maintaining anonymity. New-found urgencyPublic statements from the RBI suggested a lack of urgency in implementing a full-scale retail CBDC, coupled with a reluctance to provide a specific timeline. However, recent events indicate that an underlying sense of urgency may be emerging. In the past month, the retail CBDC achieved a notable milestone, processing one million transactions in a single day, with support from various banks. Several banks, including HDFC Bank, Kotak Mahindra Bank, Axis Bank, Canara Bank, IDFC First Bank and Union Bank of India, reportedly encouraged their employees to deposit funds in CBDC instead of fiat currency, contributing to this achievement. The official overseeing the CBDC development emphasized the necessity for experimentation and substantial efforts to ensure the security of the digital currency. While the settlement aspect is considered straightforward, addressing latency remains a priority for the RBI. No mandate on taxThe RBI, historically known for its opposition to crypto both domestically and globally, clarified that crypto taxation is not within its mandate. This clarification suggests that the RBI might not object if the Indian government decides to reduce the stringent taxes currently imposed on cryptocurrencies. The central bank clarified that it lacks the mandate to express a viewpoint on reducing a contentious tax that has stirred debate within the crypto industry. The RBI has been a driving force behind the adoption of wholesale and retail CBDC since late 2022 when it initiated pilot programs. The official emphasized that taxation matters fall under the government’s purview, reinforcing the RBI’s focus on its designated responsibilities. Similarly, the country’s judiciary recently turned down a plea to have it formulate a crypto regulatory framework, outlining that this too is up to the government to address. The central bank has a historical context of attempting to ban cryptocurrencies, with effective prohibitions in place between 2018 and 2020 until a Supreme Court order overturned the ban. Since then, the RBI has consistently expressed concerns about cryptocurrencies in various forums, including the Group of 20, where India played a leading role in coordinating global regulation in the crypto space. Recent utterances from the RBI governor, Shaktikanta Das, suggest that the regulator is disinterested in seeing the offering of spot crypto exchange-traded funds (ETFs) in India despite that eventuality coming to pass last month in the United States. Das also spoke positively recently about the tokenization of real-world assets using blockchain technology.