Hong Kong Urged to Issue HKD Stablecoin

Laos targets crypto operators’ unpaid feesIn a bid to enhance state revenues, Laos has turned its focus to the cryptocurrency sector, revealing that operators in the country owe a total of $20 million in fees. The announcement, reported on Thursday by Chinese state news agency Xinhua News, references information from the Lao People’s Army News.Photo by Alessio Roversi on UnsplashLoss-making mining activityLaos had previously granted authorization to 15 blockchain companies to engage in crypto mining or operate as exchanges as part of a strategy to diversify government income sources. However, Prime Minister Sonexay Siphandone disclosed that two of these companies showed no progress in their operations, while others lagged behind in meeting their financial obligations to the state.It emerged in August that the national electricity supplier, Electricité du Laos, had decided to suspend the supply of energy to crypto miners amid a perfect storm of challenges. Laos has ample hydro electric resources and is a net exporter of electricity. However, a drought this year has challenged it to honor contracts for supply of electricity to the Electricity Generating Authority of Thailand.To deal with this issue, power supply to Laotian crypto miners was suspended. To compound matters, many mining operators have been struggling financially and were unable to pay their bills.Debt reliefSiphandone mentioned that since the government initially set the tax obligations, the overall value of cryptocurrencies has experienced a 50% decline. Consequently, Laos has decided to alleviate the burden on crypto companies by reducing the outstanding balance by an equivalent 50%.Following this decision, the affected companies have commenced the settlement of their fees, and it is anticipated that all outstanding amounts will be fully resolved by the year’s end, according to the country’s Prime Minister. However, he issued a cautionary note, stating that companies failing to make satisfactory progress would face consequences, including the suspension of their operations, imposition of fines or even the revocation of their licenses.Digital transformationIn May, Laos outlined key aspects of its digital transformation strategy, emphasizing the use of digital technology to generate new fiscal revenue, strengthen foreign exchange reserves, control inflation, and promote sustainable economic growth. The move to reduce crypto companies’ tax burdens amid market volatility underscores Laos’ adaptability to the challenges presented by the dynamic cryptocurrency landscape.As part of its digital transformation strategy, the Laotian government signed a cooperation agreement with Singapore’s MetaBank. Partnering with another overseas entity, the country has also relied upon the expertise of Japanese fintech developer Soramitsu with regard to a central bank digital currency (CBDC). Soramitsu has played a pivotal role in enabling the issuance of Laos’ Digital Lao Kip.Early last year, the landlocked Southeast Asian country authorized trading licenses for two crypto platforms. These included Lao Digital Assets Exchange (LDX), a joint venture between Phongsupthavy Group and AIF Group, and Bitqik, a subsidiary company of Simuong Group.

Real-World Assets Emerge as a Beacon of Hope for the Blockchain Industry Amid Crypto WinterIn the midst of a crypto winter that has cast a shadow over the blockchain industry, a new opportunity has come to light — the tokenization of real-world assets (RWAs), or tangible assets such as gold and real estate, on blockchain networks.Photo by Tierra Mallorca on UnsplashMajor blockchain companies and industry experts gathered at Klaytn Square Lounge 2023, a blockchain and Web3 event in Gangnam, southern Seoul on Monday to discuss how RWAs could overcome the limitations of the current blockchain market.The rise of RWAsRecently, platforms like RWA tokenization project Elysia and Klaytn Foundation have started to shift their attention to RWAs as a promising avenue in the blockchain market. According to a report by global consulting firm Boston Consulting Group, the total value of the global RWA market, which reached $310 billion last year, is projected to surge to a staggering $16 trillion by 2030.“During the ongoing crypto winter, we are witnessing not only new funds pouring into blockchain projects but also existing funds leaving the market. We see RWAs as a potential solution to this,” said Seo Sang-min, Representative Director at Klaytn Foundation.Seo went on to explain that currently, virtual assets dominate most of the assets on blockchain mainnets like Klaytn, but compared to RWAs such as gold, cash, and real estate, their scale is very small. “We need to expand the utility of RWAs by placing them on the blockchain. Once they are, transaction costs will significantly decrease, and anyone will be able to trade 24/7 worldwide,” he said.Other blockchain experts at the conference also shared this sentiment. “Tokenizing RWAs is crucial because it provides investment opportunities that do not require large sums of money or lengthy waiting periods,” Luc Falempin, CEO of Tokeny Solutions emphasized. Beyond tokenizing the assets themselves, legal contracts and information about the various stakeholders involved, such as asset issuers and investors, can be recorded and shared on the blockchain, which can prove to be very convenient for investors.Revolutionizing investmentAccording to Falempin, most derivative investments involve seeking investment opportunities, creating portfolios, and enduring complicated processes for recovering investment capital that can take over ten years to complete. Additionally, ordinary investors often struggle to raise the substantial funds required for investment, creating high entry barriers. Also, investment contracts were traditionally executed on paper, which is outdated and inconvenient. However, as blockchain technology enables the tokenization of assets, these processes become much simpler.“Through RWA-backed virtual assets, even dozens of individuals can easily participate in investment, eliminating the hassle of dealing with paperwork. Introducing blockchain as a new infrastructure allows all stakeholders to easily view relevant records within the blockchain network,” he stated.The role of DAOsSo, how can investment products like RWA tokens be effectively managed within the decentralized realm of blockchain? Yoon Kim, Chief Marketing Officer of Elysia, mentioned decentralized autonomous organizations (DAOs) as a fit solution.“DAOs are a realistic method that is crucial for implementing the RWA model effectively. All stakeholders within a DAO can make modifications and creations, providing an avenue for managing tokenized assets effectively without government intervention,” Kim said.Technical hurdlesHowever, RWA tokens face several technical challenges. RWA products, which integrate the real world with the blockchain realm, could suffer from the so-called oracle problem, which refers to the inherent inability of blockchains to access external data, leading to a lack of information transparency. Even if the assets are stable, their prices on the blockchain network may differ from those in the real market. Currently, there are no established technical solutions to address these issues.“Rather than getting directly involved, we aim to move in accordance with market prices, but also seek ways to minimize risks with the help of external entities in certain cases,” said James Lim, CEO of Creder.As the crypto winter persists, the blockchain industry is looking towards RWAs as a beacon of hope, offering the potential to bridge the gap between traditional assets and the decentralized world of blockchain, despite the challenges that lie ahead.

Bybit Gets Outline Approval to Operate in KazakhstanBybit, the cryptocurrency spot and derivatives trading platform, is expanding its operations with a recent “in-principle” approval from the Astana Financial Services Authority (AFSA) in Kazakhstan. This approval allows Bybit to operate as a digital asset trading facility and custody services provider at the Astana International Financial Centre (AIFC).Photo by Engin Akyurt on PexelsExpanding area of operationsBen Zhou, the co-founder and CEO of Bybit, expressed his belief in the promising potential of the Commonwealth of Independent States (CIS) region for the growth of the crypto industry. He also emphasized Bybit’s commitment to complying with local regulations, following the recent scrutiny the company faced in Japan for operating without proper registration.To obtain permanent authorization to serve the local market, Bybit must fulfill certain pre-conditions specified in the in-principle approval and complete the application process. In April, it emerged that the company had established its global headquarters in Dubai, where it has already secured “in-principle” approval to operate a virtual assets business. Bybit has also been active in Hong Kong and is in the process of obtaining a license to trade in the Chinese autonomous territory.Debit card and lending servicesAs well as a geographical expansion, in recent months Bybit has also been expanding its service offering. On May 2, the exchange announced the introduction of crypto lending services for its users. This addition allows users to lend and borrow cryptocurrencies through the Bybit platform, providing them with more opportunities to maximize their holdings.Earlier this year, Bybit collaborated with Mastercard to launch a new debit card tailored for cryptocurrency payments. This partnership aimed to bridge the gap between traditional financial systems and the growing crypto ecosystem, allowing users to spend their cryptocurrencies seamlessly in everyday transactions.Kazakhstan’s crypto strategyKazakhstan got off to a difficult start with crypto. Once crypto miners were banished from China, many of them moved operations to Kazakhstan, putting pressure on the local power grid.The local administration has since gotten to grips with the industry, restricting crypto miners’ access to cheap electricity. Bybit’s decision to offer services in Kazakhstan aligns with the country’s current efforts to position itself as a regional hub for crypto, mining, and blockchain.In February, local officials implemented a mandate that requires 75% of revenue generated from crypto mining to be sold through a crypto exchange, with the aim of combating tax evasion.CBDC developmentFurthermore, Kazakhstan has been actively exploring the development of a central bank digital currency (CBDC) and is currently in the pilot phase of its implementation. The introduction of a CBDC can potentially revolutionize the country’s financial landscape, offering faster and more efficient digital transactions while maintaining regulatory oversight.Bybit’s pre-approval in Kazakhstan signifies the company’s strategic expansion into a region with a favorable regulatory environment for cryptocurrencies. As the crypto industry continues to evolve, partnerships between traditional financial institutions and crypto exchanges, like the collaboration between Bybit and Mastercard, demonstrate the increasing integration and acceptance of digital assets in mainstream financial systems.