China Launches National Blockchain Center to Develop Talent

Polymesh’s APAC Digital Asset Regulation Report Highlights ChallengesThe project team behind Polymesh, an institutional-grade permissioned blockchain built specifically for regulated assets, released a report on digital asset regulation within the Asia Pacific (APAC) region on Tuesday, highlighting several challenges that regulators are attempting to overcome.In a press release, the company outlined that the report covers recent regulatory developments in South Korea, Singapore, Hong Kong, and the broader APAC region.Photo by Jéan Béller on UnsplashProgressive regulatory effortsRegulators within the APAC region are currently striving to introduce legislation for digital assets, while several centers within the region are vying to establish themselves as hubs for digital asset-related business.The report explores the individual efforts of regulators in various APAC nations as they work towards crafting regulatory frameworks tailored to their jurisdictions. Those efforts encompass implementation, investigation, and enforcement of legislation in a borderless industry.Regulators in South Korea, Singapore, and Hong Kong have all embarked on formulating rules for emerging asset categories, albeit using different terminologies such as “digital assets,” “digital payment tokens,” and “virtual assets.” Their focus lies in striking a balance between consumer protection, market integrity, and industry development.Additionally, all three regulators adhere to the principle of “same activity, same regulations, same risks” when it comes to tokenized securities. They argue that regulatory requirements do not significantly differ solely because a security is in tokenized form. Each state has been actively engaged in local and global activities surrounding security tokens, including state involvement in the advancement of security token technology and cross-border transactions.Main findingsThe report’s main findings emphasize that while regulators in the APAC region are making strides in introducing digital asset legislation, the road ahead will not be without challenges.Legislating a cross-border industry poses difficulties that necessitate harmonization to foster a robust and interconnected ecosystem. Digital assets originating in Asia can be traded globally and vice versa. Merely identifying the asset’s place of origin is no longer sufficient.Although the report delves into the efforts of individual regulators, it emphasizes the need for long-term collaboration to establish a unified vision and practical implementation of regulations for this borderless phenomenon.Regulatory challengesThe regulatory challenges faced by South Korea, Singapore, and Hong Kong in driving the growth of digital assets in the APAC region are multifaceted. They include the intricacies of legislating an inherently cross-border industry. In turn, that can lead to the potential violation of legislation from other jurisdictions.The lack of harmonization among different jurisdictions, and variations in regulatory approaches among the three regulators are likely to be problematic. Furthermore, there are push-pull dynamics between the industry and regulators, with even the regulators themselves not always in agreement.However, despite these challenges, all three regulators have initiated the formulation of rules for new asset categories, with a strong emphasis on safeguarding consumer interests, maintaining market integrity, and fostering industry development.

Thailand’s Incoming Prime Minister Signals Crypto EmbraceIn a recent parliamentary decision on August 22, real estate magnate Srettha Thavisin emerged as Thailand’s forthcoming Prime Minister. Thavisin, acclaimed for his prior role as the CEO of Sansiri — one of Thailand’s major real estate developers — has a history entwined with the cryptocurrency sector, hinting at potential ramifications for the nation’s crypto landscape.Photo by Markus Winkler on UnsplashParliamentary selection winThe appointment came under the banner of the Pheu Thai Party, with Thavisin securing 482 votes out of 747 in the parliamentary endorsement.Thavisin’s ascent to power could potentially herald a significant shift in Thailand’s approach to cryptocurrencies, leveraging his involvement with Sansiri’s foray into the digital asset domain. Departing from his role as Sansiri’s CEO in April, Thavisin relinquished his 4.4% stake in the company, setting the stage for him to pursue a career in politics.Crypto firm investmentSansiri, under Thavisin’s leadership, undertook active participation in the country’s digital asset arena. Notably, in 2021, the company participated in a substantial $225 million fundraising round for XSpring Capital, a crypto-friendly investment management firm. This strategic partnership paved the way for XSpring to launch a fully integrated cryptocurrency trading platform in 2022, with aspirations to establish a presence among the top crypto exchange companies by 2025.Thavisin’s impact on the crypto sector goes beyond investment. His company also introduced the “SiriHub Token” via XSpring in 2022, presenting a real estate-backed initial coin offering (ICO) that extended 240 million tokens to the public. This duality of involvement from crypto firm investment to token issuance, demonstrates that the new Thai premier has not been afraid to get involved with crypto innovation at an early stage.Crypto airdrop proposalIt appears that Thavisin’s affinity for cryptocurrency transcends corporate endeavors, as his political affiliation with the Pheu Thai Party, which he joined in November 2022, introduced a novel proposition. The party proposed disbursing 10,000 Thai baht (approximately $300) to citizens, executed through digital currency transactions. The synergy between his cryptocurrency background and this proposal raises questions about the potential influence of his past on Thailand’s future crypto policies.As Thavisin’s administration prepares to assume office by the end of September, the extent to which his crypto engagement shapes the nation’s policies remains a topic of speculation. However, the confluence of his real estate expertise and cryptocurrency ventures offers a unique blend of experiences that might foster innovative approaches.Notably, Thavisin’s journey isn’t the sole instance of Thailand’s government engaging with the crypto industry. Earlier in 2023, Thailand’s cabinet introduced tax breaks for companies issuing investment tokens. These measures, announced in March, aim to generate 128 billion baht ($3.7 billion) from investment token offerings over the next two years.Political importanceThavisin’s perceived embrace of cryptocurrency in Thailand comes at a time when crypto and blockchain innovation is being supported by political candidates in multiple jurisdictions. In the United States, the Republican Party is holding a debate on Wednesday between its eight candidates for the presidential nomination, with several of them being pro-crypto.On the Democratic Party side, Robert F. Kennedy is pro-bitcoin, having recently stated that bitcoin is an exercise in extending civil liberty. Meanwhile, in Argentina, Javier Milei, a libertarian pro-bitcoin candidate, topped the poll in the country’s recent presidential primary.

Incheon Joins Hands with The Sandbox to Promote City in the MetaverseIncheon Metropolitan City is partnering with global metaverse platform The Sandbox to create innovative marketing content aimed at promoting its urban landscape within the virtual realm and establishing an overseas promotional network. This move makes it the first South Korean public institution to work with a metaverse platform.Photo by Jiho Choi on UnsplashThe Sandbox’s virtual worldBuilt on the Ethereum blockchain, The Sandbox enables users to employ non-fungible tokens (NFTs) for creating play-to-earn (P2E) games that can be monetized. The ecosystem’s utility token, SAND, facilitates this mechanism as it is used for in-game purchases. Currently, the platform boasts one of the highest cumulative NFT collection volumes among virtual world projects on the world’s largest NFT marketplace, OpenSea. It has also formed partnerships with over 400 entities around the world.City marketing strategyThrough this collaboration, Incheon plans to develop and introduce engaging content for users to experience the city virtually, such as a variety of events. Furthermore, the city also intends to utilize its intellectual property (IP) for activities such as NFT donation campaigns and metaverse creator training programs to implement extensive NFT content within The Sandbox’s virtual world.“We plan to continually develop content that enables people around the world to experience Incheon through our collaboration with the global metaverse platform,” said Lee Se-woong, Head of Incheon’s City Branding Division.