Next Month’s Hackathon Event in Seoul Draws Attention from Ethereum Developers

China to outline clear directions for NFT & Web3 developmentEarlier this week, China’s Ministry of Science and Technology announced a decision to work towards releasing a comprehensive strategy document aimed at clarifying the future path for the development of NFTs and Web3.Photo by Christian Lue on UnsplashFurthering Web3 innovationIn a communication published online on Tuesday, the ministry outlined its plan to enhance collaboration between relevant departments, emphasizing the promotion of Web3 innovation, increased research deployment and the strengthening of talent within the industry. Despite the regulatory challenges in the crypto space, the ministry acknowledged the growing interest in NFTs among Chinese citizens.The strategy document, developed in collaboration with the Chinese Academy of Sciences and the China Association for Science and Technology, will address key issues such as inheritance, innovation, security and government responsibilities.Ban not suppressing interestDespite the country’s ban on cryptocurrencies, the ministry expressed a commitment to the development of the Web3 industry, particularly focusing on non-fungible tokens (NFTs). Earlier this year, a Wall Street Journal investigation found that leading global crypto exchange Binance was thriving in China.One gray area that Chinese citizens are exploiting relative to the ban is that of NFTs. Crypto trading and mining were banned a couple of years ago. However, NFTs remain legal with the result that there has been a surge in adoption of digital collectibles in China. That prompted China’s top procuratorial agency, the Supreme People’s Procuratorate of China, to issue a warning relative to a number of attributes and risks relative to NFTs in May.Web3-related initiativesSeveral Web3 initiatives have already been underway in China. The Ministry of Science and Technology, in conjunction with the Cyberspace Administration of China, has released important policy documents, including the “Guiding Opinions on Accelerating the Application of Blockchain Technology and Industrial Development” and the “Blockchain Information Service Management Regulations.”Additionally, collaborative efforts involving the Cyberspace Administration of China, the Propaganda Department of the Central Committee, the Supreme People’s Court and other departments have conducted blockchain pilot actions, specifically in areas such as energy, rule of law, copyright and trade finance.The metaverse is another Web3 segment that the Chinese seem to be targeting for growth. A report by POLITICO published last August found that Chinese authorities and state-owned companies appeared to be seeking to mold and develop the metaverse in line with Chinese values. Efforts are being made to effect further development in the regions also, with the city of Zhengzhou announcing in May a set of metaverse-related policy proposals.Looking ahead, China’s Web3 strategy aims to concentrate on key sectors such as government affairs and industry. The plan seeks to encourage the development of novel business models, including NFTs and decentralized applications (dApps), while also accelerating the innovative application of Web3 and the construction of a digital ecosystem.The ministry’s recent response to Wu Jiezhuang, a member of the CPPCC National Committee, the country’s political advisory body, indicated that the delay in releasing the strategy document is part of a meticulous approach to ensure the strategic framework aligns with the evolving nature of the industry.While the postponement may be met with some disappointment, the overall tone remains optimistic, pointing towards the likelihood that China is committed to fostering innovation within the Web3 sector.

XPLA-Kado Partnership allows fiat-to-crypto transactions for XPLA usersXPLA, the layer 1 blockchain project operated by South Korean gaming company Com2uS Group, announced on Friday (local time) its partnership with Kado, a fiat-to-crypto on/off ramp platform, enabling XPLA users to move between fiat currencies and cryptocurrencies seamlessly.Photo by Ibrahim Boran on UnsplashXPLA available via Visa, MastercardKado simplifies the process of converting between fiat and crypto. Usually, Web3 users have to deal with the inconvenience of using centralized exchanges to make such conversions. But Kado makes this much easier, allowing users to make purchases with either fiat currencies or cryptocurrencies. The platform accommodates an array of more than 20 fiat currencies and supports well-established payment options, including Visa, Mastercard, Apple Pay, ACH Transfer and Wire Transfer. Moreover, Kado’s services extend across over 150 countries that support Know Your Customer (KYC) protocols.Paul Kim, CEO of XPLA, acknowledged Kado’s contributions to establishing a base for the growth of the Web3 economy. He pointed out that this collaboration will make it simpler and more intuitive for XPLA users to engage with the Web3 economy. Thanks to Kado’s services, XPLA users will now be able to transact with their tokens with greater ease.Vince Dowdle, co-founder of Kado, underscored the importance of this partnership, noting that Kado has recognized XPLA as a frontrunner in shaping the future of Web3 gaming. This recognition comes from XPLA’s proactive stance in acquiring the intellectual properties (IPs) of multiple major games, reflecting a firm belief in the potential of the Web3 content space.Meanwhile, XPLA boasts a diverse roster of validators such as Oasys, Animoca Brands, YGG, Blockdaemon, Cosmostation and LayerZero. It has also onboarded popular games like Summoners War: Chronicles, Minigame Party, Ace Fishing: Crew, Idle Ninja Online and The Walking Dead: All-Stars. With these titles, XPLA is actively working to establish itself as a major hub for Web3 content on a global scale.

First Digital to Introduce USD-Backed USD StablecoinFirst Digital Trust, a Hong Kong-based qualified custodian and trust company, is set to introduce a new stablecoin called “First Digital USD,” with the short-code $FDUSD. This stablecoin will be pegged to the US dollar but regulated within Asia.Photo by Alexander Grey on UnsplashIntroducing $FDUSDAccording to First Digital, $FDUSD will be backed by one US dollar or an asset of equivalent fair value on a one-to-one basis. The reserves supporting FDUSD will be held in segregated accounts at institutions in Asia.$FDUSD aims to provide stability and will be programmable, enabling the execution of financial contracts, escrow services, and insurance without the need for intermediaries. In a statement published on Thursday, First Digital emphasized its commitment to full compliance with current and future laws and regulations. The company also expressed its intention to participate in shaping the regulatory landscape for $FDUSD and First Digital itself.The announcement of $FDUSD is particularly significant in light of the new “Guidelines for Virtual Asset Trading Platform Operators” set to take effect in Hong Kong on June 1. These guidelines outline rules for safe asset custody, client asset segregation, conflict of interest avoidance, and cybersecurity standards, as mandated by Hong Kong’s Securities and Futures Commission (SFC).Hosted on BNB Smart ChainFDUSD will operate on the BNB Smart Chain and will be issued by First Digital Labs, a subsidiary of First Digital Trust, a regulated digital asset custodian under the Hong Kong Trustee Ordinance. The law ensures that $FDUSD will be fully backed by US dollar reserves or highly liquid, high-quality assets held in regulated Asian financial institutions, with no commingling with other assets of First Digital.Vincent Chok, CEO of First Digital, emphasized the company’s commitment to regulatory compliance and setting a new standard for legitimacy in the industry. First Digital intends to comply with all applicable laws and regulations and actively contribute to the shaping of regulatory regimes for $FDUSD and First Digital in the future.The $FDUSD stablecoin will be redeemable for US dollars, providing users with a reliable bridge between the digital and fiat currencies.Biden administration's own goalAs regulatory uncertainty persists in the United States, some industry players are expressing concerns about losing the country’s leadership position in the crypto sector. They warn that the industry may be offshore to more favorable jurisdictions.News of First Digital Trust’s US dollar stablecoin intentions brought scathing criticism of US policy from US commentators within the crypto space. Austin Campbell, Managing Partner at Zero Knowledge Consulting, a firm that advises on crypto payments and stablecoins, stated that the US government and US regulators had created a paradigm where they now have less control over distribution and regulation while the product they were suppressing continues to exist and scales elsewhere.Nic Carter, Partner at venture capital firm Castle Island Ventures, wrote that “the wise sages in US government took one look at the onshore registered stablecoin market and decided they’d much prefer unaccountable offshore crypto-eurodollars.”Macro-economist Luke Gromen described this consequence of US policy as the “monetary equivalent of deciding they would prefer making their goods in China rather than paying US workers and deal with union labor.” Meanwhile, Caitlin Long, Founder and CEO of digital asset-focused Custodia Bank, suggested that US federal regulators “thought they could kill USD stablecoins” but that “they miscalculated.”