Hong Kong Broadens Pilot Program for China’s Digital Yuan

EMERGE Group, a leading Southeast Asian marketing technology firm specializing in intellectual property (IP) and gaming partnerships, has forged a strategic alliance with TZ APAC in an effort to drive Web3 gaming relative to the Tezos layer one blockchain. Singapore-based TZ APAC is a Web3 ecosystem builder dedicated to advancing the Web3 ecosystem on the Tezos blockchain by empowering founders, creators and developers. It’s also the Asian adoption entity supported by the Tezos Foundation with a mandate to garner adoption of the Tezos blockchain within the region. EMERGE is also a Singapore-based entity that established itself during the pandemic.Photo by Rodion Kutsaiev on UnsplashPositioning Tezos as preferred gaming blockchainNews of the partnership was publicized recently within "The Baking Sheet," a bulletin published by an independent not-for-profit entity, Tezos Commons. The primary focus of this partnership is to offer marketing solutions and publishing partnership support. EMERGE Group, known for its expertise and influential network, including partnerships with Moonton, Singtel and Shopback, aims to position Tezos as the preferred blockchain platform for the gaming community. Leveraging advertising inventories and critical IPs, EMERGE Group intends to facilitate the seamless onboarding of game studios onto the Tezos blockchain. Tezos, renowned for its open-source blockchain emphasizing upgradability, participation and smart contract safety, joins forces with EMERGE Group, which has previously established strategic alliances with industry leaders like Nvir World and Infinite Loop Media. This partnership is seeking to make an impact within the gaming industry, harnessing the potential of blockchain technology. Jason Lim, responsible for business development (gaming) at TZ APAC, commented on the partnership:“With this collaboration, TZ APAC can now rely on a partner that shares the same goal — to empower the gaming community with the relevant tools, resources, and network to succeed. Builders, gamers, and ecosystem partners can stand to benefit from the marriage of full-suite support provided by TZ APAC and the marketing prowess of EMERGE Group.”  EMERGE Group co-founder and CEO Roy Kek was similarly enthused, stating that the partnership reflected the firm’s expertise in the Web3 gaming space. Bridging Web2 to Web3The collaborative effort is designed to create a bridge between Web2 and Web3 technologies, enhancing the overall gaming experience. By fostering a supportive environment for game developers and capitalizing on Tezos' blockchain capabilities, the partnership aims to deliver a frictionless onboarding experience.  The collaboration between EMERGE Group and TZ APAC signifies a proactive move towards the integration of gaming into the Web3 ecosystem on Tezos. In the past, gaming giant Ubisoft has leaned on Tezos in providing in-game items for some of its gaming titles. The project has partnered with Google Cloud in an effort to enable Google Cloud customers to build Web3 applications on the blockchain. It’s still early days for Web3 gaming and with that, this partnership is seeking to advance gaming development on Tezos.   

Korean Banks Impose Crypto Exchanges to Maintain a Reserve of at Least 3B KRWIn a significant step towards regulating the cryptocurrency market and ensuring the safety of virtual asset users, South Korea’s Federation of Banks (KFB) has collaborated with financial authorities and virtual asset exchanges to establish the “Guidelines for the Operation of Real Name Accounts for Virtual Assets.” The KFB, as a group of banks and financial institutions, facilitates cooperation between its members and promotes the development of the financial industry.Photo by rc.xyz NFT gallery on UnsplashThe guidelines come as a response to the increasing need for stronger money laundering prevention measures and standardization in the crypto industry. The first step towards this was taken in 2018 when crypto exchanges became obliged to establish a real name account at a bank in order to provide Korean Won (KRW) deposit and withdrawal services to their customers. Currently, the exchanges that won such bank accounts are Upbit, Bithumb, Coinone, Korbit, and Gopax.However, this policy brought with it a set of challenges, including differing practices among various cryptocurrency exchanges, leading to inconveniences for users. Additionally, varying user protection measures, such as reserve requirements, caused confusion in the market.3 billion KRW in reservesTo address these issues, the new guidelines aim to clarify how banks operate cryptocurrency real-name accounts and bolster overall security. One of the key changes is the requirement for crypto exchanges to maintain a reserve of at least 3 billion KRW ($2.36 million). This reserve fund serves as a precautionary measure to address potential financial losses resulting from hacking incidents or system failures at crypto exchanges.Furthermore, the guidelines mandate banks to manage deposit and withdrawal limits by categorizing user accounts into limited and normal accounts. A limited account will not be converted to a normal account, which grants higher deposit and withdrawal limits, until the user’s transaction purpose and the source of funds are verified.Enhanced due diligenceIn addition, banks will perform annual enhanced due diligence (EDD) for individual account holders. This thorough review will encompass users’ identification, transaction purposes, and the origin of funds.User asset segregationTo safeguard users’ funds, crypto exchanges will be required to ensure that customer deposits are held separately or placed in trust. Regular due diligence at crypto exchanges will also be conducted by banks, with mandatory visits occurring at least once a month. Moreover, third-party services will be engaged to perform independent due diligence every quarter on crypto exchanges, providing an additional assessment of their operations.The official launch of these new guidelines is scheduled for January of next year. However, the requirement of depositing at least 3 billion KRW will come into effect earlier, starting in September of this year. Additionally, the implementation of guidelines for expanding deposit and withdrawal limits is anticipated in March of next year.

India’s Upcoming G20 Summit Bullish for CryptoThe upcoming G20 summit in Delhi, India, will mark the first-ever G20 summit hosted in South Asia. The G20 comprises 19 countries and the European Union. While the summit is focused on discussing critical issues related to the global economy, it will also include discussions on cryptocurrencies.©Pexels/Studio Art SmileCrypto policy precursor to mass adoptionRegulations and policy frameworks around crypto will be a significant topic of conversation at the summit, alongside discussions on international financial stability. India’s Finance Minister, Nirmala Sitharaman, confirmed that G20 nations are working towards creating an effective Standard Operating Procedure (SOP) for regulating crypto during the summit.India has been taking a systematic approach to regulate the evolving crypto space, as evidenced by the nation’s evolving stance on cryptocurrencies and the recently launched central bank digital currency (CBDC) pilot. With this in mind, the G20 summit in Delhi is expected to provide a platform for countries to discuss and collaborate on effective crypto regulations and policy frameworks.According to Gracy Chen, Managing Director of the Singapore-based Bitget cryptocurrency exchange, more work on policy relative to crypto in India is bullish for the development of the sector within the South Asian country. “India’s consistent growth in adapting to cryptocurrencies and forming newer policies around it has made it a hub for tech investments. With more development and a policy framework, we can expect higher mass adoption. The G20 summit will be bullish for crypto’s growth in India,” Chen told Indian weekly English-language news magazine, India Today.During the 2022 Budget discussions, the government of India proposed some significant changes to the taxation of cryptocurrencies. As a premium investment product, cryptocurrencies are known for their high volatility, and the government believed that they should be subject to a heavier tax burden. Specifically, they introduced a 30% tax on capital gains earned through the sale of digital assets, as well as a 1% tax on Tax Deducted at Source (TDS) for all crypto transactions.The tax on capital gains applies to all digital assets, and the government intends to track historical records to ensure compliance. Additionally, the 1% TDS is applied to every single transaction, regardless of its size or frequency. These changes were seen by some as a trial framework, and many in the crypto space hoped for greater leniency from the government in the future. However, it remains to be seen whether the government will revise these tax policies in the coming years.CBDC pilot projectsFurthermore, the Reserve Bank of India (RBI) has recently launched two CBDC pilots to test the feasibility of digital currencies in India. The first pilot is a wholesale CBDC, which is being conducted in collaboration with nine banks.The second pilot is a retail CBDC, launched in December, which is being tested in four major cities across India — Mumbai, New Delhi, Bengaluru, and Bhubaneswar. The goal of these pilots is to evaluate the potential of digital currencies in facilitating secure and efficient transactions, as well as to study the possible impact on the traditional banking system.By exploring both wholesale and retail CBDCs, the RBI is taking a comprehensive approach to CBDC development, which may inform future decisions regarding the adoption of digital currencies in India.Chen maintains that “discussions around cryptocurrency policy frameworks accelerate the possibilities of mass adoption in the region.” “With over 750 million internet users, India holds the potential to not just pilot but establish real-life crypto and blockchain use cases for the masses,” she added.