Taiwanese regulator set to launch crypto custody pilot

Philippine Police Warns of Play-To-Earn DangersThe play-to-earn gaming trend has not only captured the enthusiasm of gamers but has also raised concerns among authorities, prompting a closer examination of the risks inherent in cryptocurrency gaming schemes. The Philippine National Police Anti-Cybercrime Group (PNP ACG) has issued a warning about the potential dangers associated with these enticing gaming models, shedding light on some of the hidden complexities and vulnerabilities within this developing ecosystem.Play-to-earn gaming takes on added significance in the Philippines as it was in the southeast Asian country that the first breakthrough play-to-earn game, Axie Infinity, took hold during the pandemic. Axie Infinity is a metaverse game crafted on the Ethereum blockchain, inspired by the world of Pokemon. Under its play-to-earn model, players are required to acquire a minimum of three Axie characters to embark on their gaming journey.Photo by iSawRed on UnsplashHighlighting game costsHowever, the PNP ACG has raised a red flag concerning the financial commitment demanded from players, with an upfront investment potentially reaching $300. This stands in stark contrast to the traditional gaming industry, where user expenditures tend to average around $100.The PNP ACG’s warning echoes the ethos of cautious investment practices in the crypto sphere. While the security of the underlying blockchain technology may be robust, the operational components of the gaming engines and marketplaces require careful scrutiny. By implication, just as investors are advised to thoroughly research ecosystems and founders before engaging in cryptocurrency investments, gamers must exercise the same due diligence before diving into play-to-earn platforms.BCP partnershipAs part of a broader movement towards fostering the adoption of Web3 technologies in the Philippines, the Department of Information and Communications Technology (DICT) has partnered with the Blockchain Council of the Philippines (BCP). This alliance aims to harness the potential of blockchain startups to serve the public good, reflecting a commitment to sustainable growth and innovation within the sector.It is essential to emphasize that the focus on Axie Infinity doesn’t go so far as to label it a scam. Rather, it spotlights the larger concerns surrounding market volatility and accessibility barriers encountered within certain play-to-earn crypto games. The history of Axie Infinity itself underscores the vulnerabilities faced by such platforms, as exemplified by a significant hack that led to the loss of $622 million in user funds.Iterative improvementAs the gaming and crypto industries continue to intertwine, the path ahead involves careful navigation and a shared responsibility among gamers, developers, and authorities to ensure a secure and enriching experience for all stakeholders. In the overall scheme of things, the advent of Axie Infinity, and the play-to-earn model more broadly, has been a positive development when viewed as an iterative step towards the use of blockchain in gaming.Many in the blockchain gaming space have since expressed the view that the play-to-earn model can be improved upon for the benefit of gamers and developers alike. Blockchain-based gaming developers are now concentrating on engaging gameplay rather than trying to lead primarily with an emphasis on earning through playing.

MAS and NY Fed Publish Report on CBDC Cross-Border PaymentsNew York’s Federal Reserve Bank and the Monetary Authority of Singapore (MAS) have collaborated on an endeavor titled “Project Cedar Phase II x Ubin+,” examining the use of a central bank digital currency (CBDC) for wholesale cross-border payments using one or more vehicle currencies.The joint effort has culminated in the publication of a report detailing their findings and results. Commenting on the initiative, MAS Managing Director Leong Sing Chiong stated:“The Cedar x Ubin+ experiment envisages a future digital currency landscape where central banks can enable interoperability of wholesale CBDCs to facilitate more efficient cross-border payment flows including for less liquid currencies, without requiring a common infrastructure.”Photo by NASA on UnsplashExploiting positive DLT characteristicsSpecifically, the New York Innovation Center (NYIC) of the NY Fed was the entity that contributed directly towards the research project. The work built on previous phases of Project Cedar. The objective was to explore perceived advantages of digital ledger technology (DLT) such as reduced settlement risk and reduced settlement time, in the context of cross-border payments.The conventional system primarily uses the SWIFT financial messaging network. The approach is highly inefficient. It’s time-consuming and needlessly ties capital up in vostro and nostro accounts (accounts held for another entity from an account another entity holds). Tying up capital proves to be a liquidity headache for corporations and any business entity that gets involved with international trade settlement.Smart contracts and off-chain messagingAgainst that backdrop, the project team was focusing on harnessing the ability to effect atomic or real-time settlement using DLT. Having commenced the work in November, the project team decided to rely on hashed timelock smart contracts in order to bridge distinct ledgers, so as to effect cross-currency and cross-border transactions.According to the report, the proposed system also relied on off-chain messaging functionality. Cross-border trade settlement often involves a number of stakeholders. Off-chain messaging can be beneficial in disseminating information relative to the process to all stakeholders.The researchers found that each simulated payment scenario achieved end-to-end settlement in under thirty seconds on average, realizing the goal of near real-time settlement. In turn, that speed of settlement meant that stakeholders could be notified of payment finality within a matter of seconds. Certainty of settlement, and thus reduction in counterparty risk was achieved by simulating atomic settlement, such that transactions only settled if all legs in the cross-currency payment chain executed successfully.From the point of view of interoperability and autonomy, the experiment demonstrated the ability to safely execute across multiple ledgers without the need to involve a centralized clearing authority or the establishment of a shared central network.The Bank of International Settlement (BIS) recently highlighted the finding that on a daily basis, $2.2 trillion of foreign exchange transactions don’t use a payment versus payment (PvP) settlement mechanism. PvP is a less risky form of settlement where two currency legs are exchanged simultaneously. Singapore is more exposed than most in this regard. Therefore, the use of DLT to counteract that risk in line with the experiment’s findings would be a progressive step.

WEMIX PLAY to Add Two New Blockchain Games to LineupSouth Korean gaming publisher Wemade said Monday that it has agreed to onboard two new sports games, Ballies and El Jefe Futbol, on its blockchain gaming platform WEMIX PLAY.Photo by ELLA DON on UnsplashThis is the latest development in Wemade’s continued efforts to expand its global partnerships in order to secure a diverse game lineup on WEMIX PLAY and diversify genres within its gaming portfolio.New Web3-enabled games for sports enthusiastsBallies, developed by Ballies LLC, is a blockchain-based, basketball-themed strategy card mobile game. It operates on an on-ramping lend-to-earn system as a Web2 game while incorporating the benefits of Web3 platforms. Users can engage in various blockchain-integrated content, such as lending avatars to other players or participating in tournaments to earn game tokens. The game recently wrapped up beta testing and will be released at the end of this month, according to an announcement on its official X (formerly Twitter) account.On the other hand, El Jefe Futbol is Studio 369’s new soccer strategy game set to launch on November 15. Players can create soccer teams, train players, and participate in various types of matches, including tournaments, league matches, and player-versus-player (PVP) games. They can also convert their athletes into non-fungible token (NFT) cards for trading.Once these games are released, users will have the opportunity to buy and sell NFTs from Ballies and El Jefe Futbol on the WEMIX PLAY marketplace.Opportunity for expansionKlemen Gradisar, Co-Founder of Ballies LLC, expressed his excitement to be a part of the WEMIX community, deeming the WEMIX PLAY onboarding a monumental step for the platform. Matt Candler, CEO of Studio 369, added that this will be an opportunity for Studio 369’s blockchain games to reach a wider audience. As a development studio with expertise in compatibility across various platforms and high-quality gameplay, he said that the studio is committed to providing top-notch gaming experiences.