Crypto boom drives $17.5B surge in demand deposit at Korean banks

Bhutan Launches Blockchain-Based National ID SystemBhutan, the Buddhist kingdom nestled along the eastern edge of the Himalayas, has introduced a blockchain-based National Digital Identity (NDI) system.Photo by Aaron Santelices on UnsplashDisrupting the delivery of government servicesThe blockchain-based cryptographic identity platform has the potential to revolutionize the way Bhutanese citizens access government services and conduct digital transactions. According to local Bhutanese media source BBS, the system was launched last week, giving Bhutanese citizens the opportunity to download the Bhutan NDI application directly to their mobile devices.The user-friendly application promises a seamless experience, marked by a straightforward login process. Once registered, citizens will gain access to an array of government services. These will include construction approvals, land taxes, passport services, birth and death registration certificates, as well as Royal University of Bhutan degree certificates and various business-related services, all within the confines of their digital wallets.Digital wallet alongside digital identityNotably, the development could have major implications where the future use of digital currency in Bhutan is concerned. The NDI is not just a digital identity but a digital wallet.That means that users have the option to link their bank accounts to the NDI app, facilitating financial transactions without the need to switch between multiple apps. As of now, the Bank of Bhutan is the first financial institution to integrate with the NDI app.The Royal Monetary Authority of Bhutan (RMA) entered into a collaboration with enterprise blockchain firm Ripple Labs in September 2021 to develop and trial central bank digital currency (CBDC).Streamlining service deliveryThe GovTech Agency, the driving force behind the NDI project, envisions that this digital innovation will streamline and simplify the often arduous process of interacting with government agencies. Jigme Tenzing, the Acting Secretary of the GovTech Agency, explained the transformative potential, stating:“So, essentially what this enables for Bhutan is the ability to take almost all services and make them available online. This can virtually transform how services are provided in Bhutan. This is regarded as not only services that the government provides to citizens, but it can extend to even the private sector.”Some concerns have been raised with regard to this consolidation of personal information within a single platform. The GovTech Agency has responded by emphasizing the incorporation of biometric data, including fingerprint and facial recognition, to enhance identity verification and authentication. It feels that these measures are sufficient to safeguard data privacy.Crypto investmentThere had been little in the way of news emerging from the South Asian country where decentralized technology was concerned until earlier this year when it became known that the kingdom had been an investor on the failed crypto lender platforms of Celsius and BlockFi.It had done so through Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan. In May it emerged that DHI had entered into a partnership with Singapore-based Bitcoin mining firm Bitdeer, with the intention of developing green digital asset mining operations within the country.The National Digital Identity Act of Bhutan 2023 received Royal Assent in July, solidifying Bhutan’s status as the first sovereign nation to implement a comprehensive decentralized identity framework.

NEOPLY Receives Support from Abu Dhabi for Blockchain Expansion in UAENEOPLY, the open blockchain platform of South Korean investment holding company Neowiz Holdings, is set to receive support from the Abu Dhabi Investment Office (ADIO) in the United Arab Emirates (UAE) through its Innovation Programme, which provides incentives to a wide range of businesses in financial services, technology, and other high-growth areas, according to a press release.Photo by Kamil Rogalinski on UnsplashFinancial & non-financial supportWith the assistance of ADIO, NEOPLY will establish its global headquarters, H-Lab, for blockchain businesses in the Abu Dhabi Global Market (ADGM). H-Lab will benefit from both financial and non-financial support, including incentives, fee exemptions, and regulatory advantages concerning cryptocurrencies and blockchains. Moreover, H-Lab intends to collaborate with local universities to develop education and scholarship programs focused on Web3 and decentralized finance (DeFi).Operations in MENANEOPLY’s inclusion in the Innovation Programme of ADIO demonstrates the competitiveness of the blockchain project, providing it with the opportunity to expand its operations in the Middle East and North Africa (MENA) region. By leveraging the support, infrastructure, and talented workforce available through ADGM, the company will forge partnerships with leading global firms residing in the capital of the UAE to enhance its global presence.Korean firms in Abu DhabiAbu Dhabi has been increasingly attracting Korean companies. ADIO, an affiliate of the Abu Dhabi Department of Economic Development, was established in 2019 as part of the country’s initiative to promote non-oil industries and draw in advanced technology companies. In 2021, ADIO opened an office in Seoul to support the entry of innovative Korean firms into the UAE. Thanks to these efforts, several Korean enterprises, including cloud operations services company Bespin Global, hospitality tech company H2O Hospitality, and smart farm operating group K-BTS Consortium, have established entities or expanded their operations in Abu Dhabi.DeFi regulatory frameworkNEOPLY’s H-Lab will collaborate with ADGM to facilitate its development of a regulatory framework for DeFi, aspiring to become one of the world’s first regulated DeFi providers. The NEOPIN protocol, a centralized decentralized finance (CeDeFi) platform developed by NEOPLY, will work closely with ADGM’s Financial Services Regulatory Authority (FSRA) to establish an efficient and effective regulatory framework.Abdulla Abdul Aziz Al Shamsi, Acting Director General of ADIO, said, “Abu Dhabi’s enabling environment, coupled with the availability of world-class infrastructure and skilled talent, has positioned the UAE capital as a leading destination for investment in the Middle East. NEOPLY joins a wave of other innovative South Korean companies choosing Abu Dhabi as the catalyst for their next growth phase. They are joining a thriving innovation ecosystem and bringing new ideas and solutions to life in the UAE capital.”NEOPLY CEO Park Jin-ho stated, “With ADIO’s support, we are establishing our global headquarter in the heart of Abu Dhabi, which fills us with great anticipation for our financial innovation in the Middle East. With the active support of ADIO, the collaboration with ADGM, and the infrastructure of Abu Dhabi, we are committed to setting new standards in the global blockchain industry.”

Julius Baer Expands Crypto Wealth Management Services in DubaiJulius Baer, a renowned Swiss private bank, is making strides in the world of digital assets with the expansion of its crypto wealth management services in Dubai.This move, reported by Bloomberg on Wednesday, represents the bank’s first major crypto product offering overseas. The Middle Eastern subsidiary of Julius Baer, JBME, has announced its intention to apply for a “digital assets license variation” to complement its existing permissions granted by the Dubai Financial Services Authority.If successful, this license variation will empower the company to offer advisory and custodial services for digital assets like Bitcoin, Ether, and other cryptocurrencies.Photo by Sascha Bosshard on UnsplashUAE “key geography”Jonathan Hayes, the head of digital assets development at Julius Baer, has underscored the United Arab Emirates (UAE) as a “key geography” for the bank’s expansion. He points to the region’s substantial economic development as a catalyst for venturing into the Dubai market.Julius Baer has already made strides in the crypto space within Switzerland by offering lending services to select crypto clients. This pioneering service allows customers to leverage their digital assets held by the bank. However, it is currently limited to clients with diversified portfolios that include traditional assets.Attracting international interestThe UAE, along with other individual Emirates in the country, has been actively striving to attract crypto businesses. As US authorities tighten regulations, numerous companies are seeking more crypto-friendly environments to operate in. It started to accept crypto business license applications in April. US crypto exchange Coinbase indicated its interest in locating a base there the following month.In Dubai, prominent cryptocurrency exchanges such as Binance Holdings Ltd., OKX, and Crypto.com have all submitted license applications to the Virtual Assets Regulatory Authority. Binance was among one of the first to secure a license while its understood that it may be looking towards the UAE as a strategic base for the company going forward. Meanwhile, another US crypto platform, Gemini, has suggested that it will now work towards obtaining a crypto license in the UAE.Julius Baer has witnessed a broad demand from affluent individual clients ranging in age from 25 to 70, according to Lucia Desmarquest, the Deputy Head of the bank’s central and eastern European division.Having first launched its crypto services in May of the preceding year, Julius Baer currently provides standard advice on digital assets to investors domiciled across 25 countries, including Luxembourg and Singapore.The bank’s wealth management services cover approximately the top 15 cryptocurrencies in the market. Each token undergoes meticulous due diligence and is subject to review by a dedicated panel.This expansion aligns with the broader trend of TradFi firms exploring opportunities in the digital assets space, as the industry continues to evolve and gain traction globally. Julius Baer’s expertise and established reputation position it well to navigate the evolving landscape of crypto wealth management and cater to the needs of its savvy clientele.