DBS Bank pilots government grants on blockchain

Hong Kong Lawmaker Explores Digital Asset Links With MainlandIn a move aimed at bolstering its position as a rising global Web3 hub, Hong Kong Legislative Council member Johnny Ng has expressed his aspiration to foster greater collaboration between digital asset platforms in Hong Kong and a Shanghai-based exchange.Photo by Simon Zhu on UnsplashDigital asset exchange interconnectivityAs Hong Kong continues to position itself as a key player in the emerging Web3 landscape, Ng envisions a future where licensed virtual asset exchanges in Hong Kong could be interconnected with their counterparts in Shanghai.Ng’s remarks came during an interview with Chinese media outlet The Paper. Drawing a parallel with the established Shanghai-Hong Kong Stock Connect program that seamlessly connects the stock markets of both cities, Ng raised the question of whether a similar connection could be established for licensed digital asset exchanges. Ng’s idea hinges on the potential to bridge appropriate platforms in Shanghai with those licensed in Hong Kong for virtual asset trading.Interconnected talent poolThe lawmaker’s enthusiasm for interconnectivity also extends to the talent pool. He expressed his desire for more Web3 talent exchanges between Hong Kong and the mainland, recognizing Shanghai’s status as a financial hub boasting numerous exceptional financial enterprises.Hong Kong’s approach to the Web3 landscape stands in contrast to mainland China’s stringent cryptocurrency regulations. While China banned cryptocurrency transactions in 2021, Hong Kong has embraced crypto firms, even encouraging partnerships between these firms and local banks.This year, Hong Kong authorities unveiled a series of cryptocurrency-related policy statements, aimed at fortifying its stature as a global financial center. A significant step followed in December, when the Hong Kong Legislative Council passed an amendment introducing a comprehensive licensing framework for virtual asset service providers (VASPs).In a recent development underscoring Hong Kong’s pro-crypto stance, HashKey and OSL have become the pioneering recipients of licenses for retail trading under the new regulatory regime, which commenced on June 1.Differing policy approachesPeople following developments in crypto and Web3 in China and East Asia have been speculating if the strategic positive shift in Hong Kong towards developing as a regional hub relative to the sector is indicative of a softening in the approach of mainland China towards the industry. It appears that Hong Kong’s pursuit of crypto business has been sanctioned by Beijing.Commentators have been monitoring the emergence of further encouraging signals. In May, Chinese state television featured a segment that covered cryptocurrency and in particular Bitcoin. Binance CEO Changpeng Zhao (CZ) was sufficiently encouraged by the development to suggest that it was “a big deal,” although the clip was later removed from the broadcaster’s website.Ng’s proposal aligns with the broader narrative of Hong Kong’s ambitious push into the Web3 landscape, capitalizing on its favorable regulatory environment to attract crypto-related ventures. As discussions evolve around the potential interconnectivity between Hong Kong and Shanghai’s digital asset exchanges, the global cryptocurrency community watches with interest to see if there are any emerging signs that Beijing will reciprocate positively.

Leading cryptocurrency exchange platform Bybit has joined a growing list of competing platforms by applying for a Virtual Asset Trading Platform Operator (VATP) license with the Hong Kong Securities and Exchange Commission (SFC). The application, submitted through the Bybit affiliate business entity Spark Fintech Limited on Jan. 31, is currently under review along with 13 similar VATP applications.Photo by Simon Zhu on UnsplashStrategic licensing playIn the dynamic landscape of cryptocurrency regulations, obtaining a VATP license in Hong Kong is a strategic move. Currently, only two crypto exchanges, OSL and HashKey Exchange, are licensed by the SFC in Hong Kong. OSL secured its license on Dec. 15, 2020, while HashKey Exchange was licensed on Nov. 9, 2022. Under a partnership agreement with OSL, Interactive Brokers has been enabled in its ability to commence trading in Hong Kong. Exchanges who have followed through on the license application process include OKX, Gate.io, and KuCoin, among others. It’s not something that is being taken on without these platforms weighing up the long term potential due to the cost implications. It emerged last year that companies were spending up to $25 million in their efforts to obtain licensing in Hong Kong. VATP vs. VASP licensingThe VATP license holds significance as it allows Hong Kong-based firms to cater to retail customers in contrast to the Virtual Asset Service Provider (VASP) license, which restricts companies to serving professional investors. In Hong Kong, investors must have portfolios valued at a minimum of eight million Hong Kong dollars ($1.03 million) to qualify for professional investor status. Hong Kong has positioned itself as a leading destination for crypto companies, particularly in 2023, owing to its favorable regulatory approach compared to mainland China's stringent crackdown on digital assets. The SFC has introduced crypto-oriented regulations, opening doors for both institutional and retail investors to participate in the crypto market. This regulatory environment has contributed to the city-state's emergence as a hub for crypto activities. Dubai-headquartered Bybit's move to seek a VATP license aligns with the growing trend of crypto companies finding a home in Hong Kong. In a statement, Ben Zhou, the founder and CEO of Bybit, emphasized the city's strategic location and established financial infrastructure as ideal for their operations and serving institutional clients across the Asia Pacific region. Institutional offeringAs part of its strategy to grow its institutional customer base, the company revamped its institutional market offering last October. With that institutional business in mind, it has also formed strategic partnerships, including collaborating with Talos, an institutional digital asset trading technology provider, and joining forces with Copper to offer custodial and settlement services for institutional clients through Copper's ClearLoop service. Bybit, launched in 2018 by Zhou, boasts a substantial user base, serving over 22 million registered users in 160 countries globally. Claiming a daily trading volume of $16.53 billion, Bybit holds the fifth-highest score among spot exchanges worldwide and is the second-ranked derivatives exchange, trailing only behind Binance, according to CoinMarketCap data. The exchange has consistently ranked in the top positions for futures and perpetuals trading throughout the last calendar year.   

As part of the celebration of Holi, the Hindu festival of colors, the Indian Railway Catering and Tourism Corporation (IRCTC) is unveiling a series of colorful NFT tickets for the Lucknow to Delhi train service. Governed by the Ministry of Railways, IRCTC is a central public sector enterprise in India. Taking to the X social media platform on March 13, the railway company offered a sneak peek into these NFTs, showcasing sketches of iconic landmarks from both Delhi and Lucknow against vividly shaded backgrounds.Photo by Johannes Plenio on UnsplashLimited-time ticketing offeringCommencing March 20, passengers booking tickets for Tejas trains numbered 82501 and 82502 will have the opportunity to access these exclusive NFTs, with the initiative set to conclude on April 2. In its social media post, the IRCTC outlined the additional perks accompanying these NFT tickets, stating:"These tickets are not merely digital souvenirs. ... They symbolize our dedication to enriching your journey experiences, allowing you to personalize your travel memories with your own photographs and enjoy exclusive offers from handpicked brands." As of now, the IRCTC has not officially confirmed whether these NFT tickets will be complimentary with ticket purchases or if passengers will need to make additional payments to acquire these digital collectibles. Polygon and HyperledgerNFTs, or non-fungible tokens, are digital assets built on blockchain networks. Earlier this year, the IRCTC collaborated with NFTtrace, a service offered by Bangalore-based blockchain development firm ChainCode Consulting, to offer NFT tickets for journeys to the Hindu sacred city of Ayodhya. The tickets were presented as more than mere travel documents but as cherished mementos of divine experiences. The NFTtrace website stated:"More than just a ticket to Ayodhya Dham - a souvenir of the divine Shree Ramotsav. Treasure the pious memories of Lord Shree Rama's arrival forever, with Blockchain NFT.”On that occasion, the NFT certificates were minted on the Polygon blockchain. Indian Railways has been exploring blockchain technology for some time now. Last March, the National Academy of Indian Railways partnered with Polygon to conduct a workshop aimed at raising awareness about the benefits of blockchain in railway industries. Polygon outlined that the integration of blockchain within the Indian railway system was the beginning of a new era that moves the technology towards mass adoption.In this latest instance, the NFTtrace platform is involved once again. However, this time around, the NFTs will be minted on the Hyperledger blockchain. Ava Labs, the developer of the Avalanche layer one blockchain, has expressed its interest in developing ticketing-related blockchain applications in India. Last October the firm highlighted blockchain-based ticketing as one of a number of areas it wanted to concentrate on in an expansion within India. Conventional firms in the travel industry have been experimenting with the technology on an ongoing basis in recent times. In 2023 Japan’s largest airline All Nipon Airways (ANA) launched its own NFT marketplace. Argentinian budget airline Flybondi took the decision to offer NFT-based tickets in 2023 in a partnership with NFT ticketing firm TravelX.