KISA to establish blockchain trust framework for public services

Korean cryptocurrency exchange FOBLGATE (FOBL) last Thursday showcased its ongoing project on real estate-based security tokens at Momo Network’s second security token offering (STO) and Web3 networking party, the game media outlet Kyunghyang Games reported. Momo Networks is the company behind Momoboard, an all-in-one app that combines bulletin board, messaging and cloud storage features. The event served as an opportunity for FOBL to inform participants about the current stage of the exchange’s project and where it is headed. Initially introduced in November last year, the project is a collaboration between FOBL and prop fintech company Plus Platform, an asset management and trading platform headquartered in New York, U.S. Photo by Glenn Carstens-Peters on UnsplashReal estate-based security token projectAt the event, participants are anticipated to discuss the future of the security token market, which is currently focused on conventional real-world assets (RWAs). This new security token project is expected to innovate traditional real estate investments, offering benefits such as high liquidity, low transaction fees and easy access to investors, explained FOBL. The crypto company aims to solidify its position in the crypto market while raising public awareness of real estate security tokens. Future of virtual assetsAhn Hyun-jun, CEO of FOBL, said he plans to make his company an innovator in virtual asset development and create various types of crypto assets that extend beyond real estate-based security tokens.   Furthermore, a FOBL spokesperson stated that this networking party will serve as a forum for Web3 and STO experts to explore new technologies and innovative investment strategies, providing valuable insights for investors and market participants. 

UAE Starts to Accept Crypto License ApplicationsEarlier this week, the United Arab Emirates (UAE) announced that it has commenced the process of accepting license applications from crypto companies.©Pexels/Andrea PiacquadioThe announcement was made by the Middle Eastern country’s Securities and Commodities Authority (SCA) on Monday. The decision comes in the wake of last year’s UAE Council of Ministers opting to regulate the country’s crypto sector as per Decision №111.VASP approval processAs part of the process, virtual asset service providers (VASPs) are obliged to apply to the SCA for approval with those already licensed within the UAEs financial-free zones not required to undertake the process.When it comes to the individual Emirates of Dubai and Abu Dhabi, both have already implemented their own licensing process relative to crypto service providers. In the case of Dubai, it already has its Virtual Assets Regulatory Authority (VARA) and its procedures have been deemed to be unified with the process now being implemented by the UAE.The SCA suggested that the initiative offers the opportunity for crypto companies to “regularize their status.”Key rulesThe SCA has set out nine articles as part of the process it is asking crypto companies to apply for and sign up to. Article 3 stipulates that VASPs can only trade digital or virtual assets that have been accepted and approved within an official list of virtual assets.Article 4 sets out the tasks and responsibilities of the virtual assets platform operator. It considers the need for integrity, transparency and professional behavior. Service access must be organized through procedures that facilitate access only for permitted persons.Article 5 highlights the obligations of VASPs relative to seven areas. These include operational efficiency and flexibility, and the provision of operational rules. That incorporates the need for the setting and maintenance of operational business rules and meeting operational rules according to a predefined set of standards.The policy sets out the right of the SCA to request provision of documents and data from a VASP and their receipt within a specified time period.Jurisdictional arbitrageThe UAE and particularly its Abu Dhabi and Dubai emirates are demonstrating that they’re open for business where the digital assets sector is concerned. It’s one location that’s on the rise in terms of coming to global prominence in competing for crypto business alongside places like Singapore and Hong Kong.The Biden administration in the United States has shifted policy relative to digital assets to the down side. On Wednesday it emerged that leading US exchange Coinbase has received approval to operate in Bermuda. It’s being speculated that negotiations are also underway in Abu Dhabi to secure a license for the company to trade there.On the day in which Securities and Exchange Commission (SEC) Chair Gary Gensler received a harsh grilling in front of the House Financial Services Committee on Capitol Hill, Coinbase CEO Brian Armstrong confirmed that the company is prepared to move overseas if the regulatory environment doesn’t improve in the United States.Meanwhile, earlier on Thursday, the European Union officially passed its Markets in Crypto-Assets (MiCA) legislation in the European Parliament, providing clarity for the digital assets industry in Europe. In moving forward with crypto licensing, the UAE is jockeying for position among a field of global centers that are vying for crypto business while the US falls behind.

Kyrgyzstan and Malaysia are advancing separate stablecoin initiatives, signaling a regional shift toward digital assets backed by tangible state reserves. While the projects differ in their underlying assets, gold in Kyrgyzstan and sovereign debt in Malaysia, both employ a hybrid model that combines public-sector oversight with private operational management.Photo by Zlaťáky.cz on UnsplashKyrgyzstan introduces gold-backed stablecoinOn Dec. 9, the Kyrgyz Republic’s state-owned OJSC Virtual Asset Issuer launched USDKG, a stablecoin pegged 1:1 to the U.S. dollar, according to a press release. The initial issuance comprises 50 million tokens, which the issuer says are fully backed by physical gold reserves. The project structure separates regulatory authority from asset management. While the issuer operates under the Ministry of Finance, management of the gold reserves has been contracted to a private company registered in the Central Asian nation. Officials say this arrangement distinguishes USDKG from a central bank digital currency (CBDC) and that the stablecoin is intended to operate alongside the national monetary system rather than compete with it. According to the statement, the token is currently issued on the Tron blockchain, with future support planned for Ethereum. The project cites an audit by ConsenSys Diligence and says it complies with Financial Action Task Force (FATF) standards, including identity verification for redemptions. The private operator aims to raise the reserves to $500 million in the next phase and later to $2 billion. Malaysia develops bond-backed tokenIn a parallel development, a Malaysian infrastructure firm with ties to the monarchy is preparing a ringgit-pegged stablecoin. According to Bloomberg, Bullish Aim is introducing the RMJDT token, which will be backed by Malaysian ringgit deposits and short-term government bonds. The company is owned by Ismail Ibrahim, son of Malaysia’s king. The token is designed to operate on Zetrix, a layer-1 blockchain developed by Malaysian firm Zetrix AI Bhd. The network currently supports the Malaysian Blockchain Infrastructure, a government-endorsed platform for digital public services and part of the country’s National Blockchain Roadmap. This places the stablecoin on the same technical foundation used for state-level digital identification and trade facilitation. Bullish Aim also intends to establish a digital-asset treasury (DAT), beginning with an investment of 500 million ringgit ($121 million) in Zetrix tokens. A DAT is a type of company that purchases and holds cryptocurrencies on its balance sheet. The initiatives in Kyrgyzstan and Malaysia suggest that stablecoin development in Asia may continue to evolve through state-anchored, asset-backed models. As each country tests its own approach to reserve management, issuance, and compliance, the next phases of both projects will offer early indications of how such frameworks perform in practice.