Kazakhstan pilots tenge-backed stablecoin with Solana and Mastercard

Hong Kong securities group proposes ICOs as growth opportunityKey stakeholders in Hong Kong’s financial world are contemplating a transformative shift in the Chinese autonomous territory’s digital asset strategy that concerns furthering initial coin offerings (ICOs).Photo by Qinyi Lian on UnsplashRoom for improvementIn a recent letter signed by Chen Zhihua, President of the Hong Kong Securities and Futures Professionals Association (HKSFPA) and published to the HKSFPA website on Wednesday, the introduction of an ICO mechanism as a potential catalyst for the city’s economic revival has been proposed.The letter, which provided the HKSFPA’s “opinions on the 2024–2025 budget,” included the ICO suggestion as recommendation №10 on a list of various proposals. The suggestion comes amid ongoing efforts to navigate the economic challenges posed by the pandemic. Zhihua acknowledges the developmental approach taken by Hong Kong Chief Executive John Lee where financial sector strategy is concerned, but emphasizes the industry group’s belief in the room for improvement that exists to stimulate Hong Kong’s financial sector further.Formalizing ICOsFormalizing ICOs in Hong Kong could establish a supportive environment for crypto startups and investors seeking regulated and secure opportunities. The proposal aligns with a broader call for government engagement in economic recovery and policy-making, emphasizing a collaborative approach toward the crypto sector. This inclusive stance signals a forward-thinking perspective that could lead to more supportive policies and frameworks, fostering a conducive environment for crypto innovation and growth.Reflecting on the history of ICOs, the letter acknowledges the fundraising method’s evolution since the attention garnered by the Mastercoin ICO in 2013 and Ethereum’s significant milestone in 2014. The ICO boom of 2017 saw projects like EOS and Tezos raising substantial funds, accompanied by both enthusiasm for fundraising ease and concerns about investor protection due to minimal regulation.Fraud concernsWhile the ICO boom faced regulatory scrutiny and witnessed instances of fraud and scams, a progressive approach by financial regions such as Hong Kong could reshape the global perception of ICOs. The letter suggests that, under favorable terms, ICOs could play a pivotal role in revitalizing the digital asset landscape.Zhihua underscores the importance of addressing potential challenges by urgently reviewing and enhancing anti-money laundering (AML) and counter-terrorist financing legislation. This cautious approach aims to ensure that ICOs in Hong Kong adhere to established frameworks, avoiding the pitfalls associated with unregulated fundraising.While that’s the HKSFPA’s position, the initial flurry of ICOs a number of years ago involved many projects proposed by scammers and fraudsters. At the time, the Hong Kong Securities and Futures Commission (SFC) recognized the development as “downright fraud” and put pressure on exchanges to delist many tokens.One other related element that the letter proposes is in integrating environmental, social and governance (ESG) and Islamic finance elements into investment immigration policies. This forward-thinking approach reflects a growing awareness of ethical and sustainable investment practices that could potentially position Hong Kong to set new standards for responsible investment.

Korean Telecommunications Firms Ramp Up ESG Efforts with NFTsSouth Korea’s top three leading telecommunications companies — SK Telecom (SKT), KT, and LG Uplus — are using non-fungible tokens (NFTs) to boost their corporate environmental, social and governance (ESG) efforts and engage younger audiences in their initiatives.Photo by Noah Buscher on UnsplashKT’s Raon NFT projectEarlier this year, KT launched an internal collaborative project between its device division and its blockchain division, KT MINCL, to issue profile picture (PFP) NFTs of its intellectual property — the feline character Raon. The project consists of four editions of NFT mintings, each with a different concept promoting mindful consumerism. 3,000 NFTs each were minted for the first two editions back in December and June, and KT is gearing up to release the third edition soon, according to industry reports on Sunday (local time). A portion of the proceeds from the upcoming third edition sale will also be donated under the project’s name. Notably, all 3,000 NFTs from the first edition were sold out in just a minute.KT has designed the NFT purchase system to encourage ESG-related activities. Buyers can receive items that reflect ESG values, such as bags from The Fair Story, a company that promotes fair trade products made by brands from developing countries. “We will continue to work with companies related to our ESG values to develop household products, miscellaneous goods, and more that are linked to NFTs,” KT said.LG Uplus and SKT’s ESG-led collaborationsLG Uplus and SKT have followed suit by incorporating eco-friendly themes into their own blockchain technologies. In particular, SKT recently signed a business agreement with WinCL, a carbon credit marketplace encouraging carbon offset efforts. The deal aims to combine SKT’s NFT marketplace, TopPort, and WinCL’s carbon credit system to issue NFTs for companies that need help managing their ESG performance indicators.On October 18, LG Uplus announced that a select number of holders of its Moono Crew NFT will be the first to purchase NFTs from the Incheon Heroes NFT collection — a collection launched on the Klaytn Mainnet as part of Incheon City’s Incheon Universe Project, aimed at introducing Incheon’s natural, cultural, historical, and technological heritage, and motivating participation in eco-friendly activities from younger generations. The company had collaborated with Incheon and Lotte Home Shopping to promote and expand the ecosystem of the collection.

The South Korean Financial Services Commission (FSC) made an official announcement on Friday (KST) stating that "domestic securities firms brokering spot bitcoin ETFs that are listed on overseas markets may be considered a violation of the government's stance on virtual assets and the Financial Investment Services and Capital Markets Act." This stance refers to a press release published on Dec. 13, 2017 that outlined the government’s conclusion that virtual assets must be dealt with carefully.Photo by Lauren Seo on UnsplashFuture possibilityHowever, this statement is not to be interpreted as a complete dismissal of the possibility that South Korea could adopt the ETF. The agency added that it would look into the issue thanks to a more stable regulatory landscape sweeping the country following the implementation of regulations on virtual assets like the Virtual Asset User Protection Act. Authorities are also taking into consideration the fact that other countries like the U.S. are adopting a more open stance. Market downturnFollowing the announcement, stocks related to the ETF in the South Korean market – which had surged on the news of a spot bitcoin ETF listing on the U.S. stock market a day ago – saw share prices drop within a day. As of 10:04 a.m. on Friday, Woori Technology Investment was trading at KRW 7,650 ($5.82), down 4.61 percent from the day before, and Hanwha Investment & Securities was down 9.09 percent to KRW 4,000. Both of these firms hold stakes in Dunamu, the operator of South Korea's largest cryptocurrency exchange Upbit.