China introduces identity verification through RealDID on blockchain

Asian Countries Dominate Chainalysis’ 2023 Global Crypto Adoption IndexBlockchain analytics firm Chainalysis has just unveiled an excerpt of its “2023 Global Crypto Adoption Index,” revealing that Asian nations are top of the class in terms of the pace of crypto adoption.The report extract published to the Chainalysis website brings into focus the remarkable strides made by a number of Asian countries, emerging as the front-runners in driving grassroots cryptocurrency adoption.The index showcases the dominance of regions like Central and South Asia, along with the broader Oceania regions. Astonishingly, six of the top 10 countries on the index hail from this part of the world.Photo by Louis Hansel on UnsplashIndia takes top spotIndia, in particular, shines as the torchbearer of cryptocurrency adoption in the region, securing its position as the largest cryptocurrency market. It not only leads the way in grassroots adoption but has also ascended to become the second-largest crypto market globally in terms of raw estimated transaction volume, eclipsing even some major global economies.It’s interesting that India should find itself in this position when you consider that a number of measures have been taken that could have been expected to dampen adoption. The Indian authorities 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.Last month, Indian crypto exchange CoinDCX specifically cited these tax burdens, combined with the recent bear market, as being contributing factors in its decision to cut its workforce by 12%. Another excerpt of the Chainalysis report explicitly refers to these measures and their potential to retard cryptocurrency use.Adoption despite bear marketDespite a temporary downturn in worldwide grassroots cryptocurrency adoption, Chainalysis’ research finds that these developing Asian nations, have not only weathered the storm brought about by the recent bear market but have thrived, with their total grassroots adoption surpassing the levels of Q3 2020, just before the most recent bull market.Other countries featuring in the top ten include Vietnam (third), the Philippines (sixth), Indonesia (seventh), Pakistan (eighth), and Thailand (tenth). China, Turkey, Bangladesh, and Japan then feature within the top twenty.This data holds promise for the cryptocurrency landscape in the Asian region. Many of these nations are lower middle-income (LMI) countries that typically exhibit burgeoning industries and populations, collectively representing more than 40% of the global population. Chainalysis suggests that if these countries shape the future, cryptocurrencies are poised to play an indispensable role in shaping the global financial ecosystem.Institutional adoptionThe excerpt from the report also hints at the burgeoning trend of institutional adoption in high-income countries, even in the face of a lingering bear market. This suggests a potential dual-directional adoption scenario, where cryptocurrencies cater to the needs of users from both affluent and developing nations, bringing together a diverse spectrum of economic backgrounds.The report takes an optimistic outlook, stating:“Grassroots crypto adoption isn’t about which countries have the highest raw transaction volumes. . . . Instead, we want to highlight the countries where average, everyday people are embracing crypto the most.”“If LMI countries are the future, then the data indicates that crypto is going to be a big part of that future.”

Singapore Elects Crypto Skeptic as PresidentGarnering 70.4% of all votes cast on Saturday, Singaporeans chose to elect Tharman Shanmugaratnam as their next president, a move that may have implications for Singapore’s outlook when it comes to digital assets.While many had hoped that he would be the nation’s first non-Chinese prime minister, the crypto industry has greeted his rise to this largely ceremonial role with mixed feelings. Shanmugaratnam’s previous stances on cryptocurrency and digital assets have been predominantly critical.Photo by Justin Lim on UnsplashFormer MAS ChairmanIn the past, the president-elect has referred to cryptocurrency as “slightly crazy” and “purely speculative.” His ascent to the presidency comes after a distinguished career that includes serving as the former finance minister, deputy prime minister, and chairman of the Monetary Authority of Singapore (MAS), the country’s central bank, from 2011 to 2023.Crypto platform collapsesIt was during his tenure at MAS that two prominent crypto companies, Three Arrows Capital (3AC) and Terraform Labs, faced catastrophic collapses.The demise of Terraform Labs, along with its TerraUSD (UST) stablecoin, triggered a severe “crypto winter” in May 2022, from which the industry is still struggling to recover. This downfall wiped out a staggering $500 billion in value over just two weeks, devastating the portfolios of numerous retail investors.The ripple effect of TerraUSD’s fall also engulfed 3AC, a significant cryptocurrency hedge fund headquartered in Singapore. The contagion spread across the cryptocurrency market, leading to the downfall of other major entities like crypto lending platforms Celsius Network and Voyager Digital, alongside Singapore-based Hodlnaut.Given that these catastrophic events unfolded during Shanmugaratnam’s tenure at MAS, it’s plausible that he bore the brunt of the consequences. That might explain why in speaking on the subject in 2021, he appeared to be more accommodative, suggesting that there may be a useful role that crypto could play and highlighting that Singapore had allowed crypto businesses to develop within the city-state.In June of last year, MAS reprimanded 3AC for providing misleading information and exceeding the allowed assets under management (AUM) threshold, thereby breaching its status as a registered fund management company.In January, Shanmugaratnam said that regulating the crypto sector would give credibility to speculation and on that basis, it would be best to leave it unregulated. He went on to suggest that crypto should be subject to existing regulation as laid down for traditional finance.Early stage concernsBack in 2018, when he was Singapore’s finance minister, Shanmugaratnam questioned the wisdom of broad regulation potentially legitimizing a speculative and “slightly crazy” market. During the 2018 World Economic Forum, he emphasized the importance of anti-money laundering measures and advocated for educating consumers about the risks inherent in the unregulated crypto sector.Although he acknowledged blockchain’s potential to enhance global payment systems, Shanmugaratnam favored integrating existing traditional payment mechanisms as an alternative to blockchain innovations.Singapore’s new president brings with him a history of skepticism towards cryptocurrency and digital assets. However, with a largely ceremonial role relative to day-to-day governance, he’s not in a position to take direct action that could hold the sector back although he will have the power to initiate corruption investigations upon the advice of the Singaporean cabinet.

Binance Japan now fully operationalGlobal cryptocurrency exchange Binance has officially commenced full operations in Japan through its locally incorporated Japanese entity, Binance Japan.Photo by Sora Sagano on UnsplashSetting off on a compliant footingFollowing a period of collaboration with regulatory authorities, Binance Japan is positioning itself firmly under the purview of clear regulatory frameworks set by the Japanese authorities.The Japanese government has instituted stringent regulations for cryptocurrency exchanges, aiming to bolster consumer protection, thwart money laundering and create a more secure trading environment. Binance Japan’s decision to align itself with these regulations comes in a year in which the leading crypto platform has encountered regulatory pushback in a whole host of jurisdictions around the world.Under the established regulatory framework, cryptocurrency exchanges in Japan are mandated to secure a license from the Financial Services Agency (FSA), the nation’s financial regulatory body. This licensing process ensures that exchanges adhere to rigorous security measures, maintain robust internal controls and implement protocols for the protection of customers.Phased market entryIt emerged back in May that the company planned to establish a separate Japanese entity. In August Binance Japan started to offer a limited service, enabling access to 34 token listings. In November the firm added 13 further digital assets, with the suggestion that it would eventually offer 100 tradable digital assets.Taking to the X social media platform on Sunday, Sota Watanabe, the founder of Polkadot-centric multichain dApp hub Astar Network and the CEO of Singapore-based Startale Labs, confirmed that Binance Japan is now in full operation. Watanabe wrote:”Binance Japan started its full operation yesterday under clear regulations set by the government, and they have listed Astar from day 1 as one of the first cryptos. I hope more and more Japanese people enter our ecosystem.”Focus on stablecoinsIn a virtual business discussion at the end of August, Head of Binance Japan, Takeshi Chino, set out the company’s vision going forward. Part of the business plans includes potential collaborations on the development of stablecoins. Further news on that pursuit became known the following month when Mitsubishi UFJ Trust and Banking Corporation (MUTB), the trust arm of Japan’s largest bank, announced a collaboration with Binance Japan that will investigate the issuance of public blockchain stablecoins denominated in the local currency, the Japanese yen, as well as other fiat currencies.The full launch of Binance Japan signifies the increasing recognition of cryptocurrencies as a legitimate financial asset class. With a major global exchange like Binance willingly adhering to local regulations, it sets a positive precedent for other exchanges and entities in the region to follow suit.Furthermore, given Japan’s historical significance in the global cryptocurrency market, Binance’s operations in the country could contribute significantly to the broader acceptance and integration of cryptocurrencies into the financial ecosystem. This move aligns with the global trend of heightened institutional interest in digital assets.Binance Japan’s initiation of full operations within a clear regulatory framework marks a further stride forward for both the exchange and the Asian crypto market.