Binance partners with Bhutan on tourism payment system

The Hong Kong Monetary Authority (HKMA) has outlined that it has established a community initiative relative to its recently launched Project Ensemble tokenization market development effort. 'Project Ensemble Architecture Community'In a press release on May 7, the Hong Kong regulator set out the establishment of the “Project Ensemble Architecture Community.” Project Ensemble was launched two months ago on March 7. At the time, the regulator described the project as “a new wholesale central bank digital currency (wCBDC) project to render support to the development of the tokenisation market in Hong Kong.” The HKMA is trying to create an environment in which it can “develop standards” for the emerging tokenization market, with particular emphasis on the use of a wholesale central bank digital currency (wCBDC). The Chinese autonomous territory’s central bank has launched the “Project Ensemble Architecture Community,” with a view towards supporting interoperability between a wholesale CBDC, tokenized money and tokenized assets. The HKMA has outlined the community's primary objective, stating it aims to provide recommendations on various topics, with initial emphasis on devising a mechanism to facilitate seamless interbank settlement of tokenized deposits through wCBDC for tokenized asset transactions.Photo by Jimmy Chan on PexelsPublic and private sector participantsFurthermore, the working group intends to support the design and execution of Project Ensemble. Notable participants in the "Architecture Community" include the HKMA itself, Hong Kong’s other financial regulator, the Securities and Futures Commission (SFC), the BIS Innovation Hub Hong Kong Centre, the CBDC Expert Group and seven private sector entities.  Among these are Bank of China (Hong Kong), Hang Seng Bank, HSBC, Standard Chartered Hong Kong, HashKey Group, Ant Digital Technologies and Microsoft Hong Kong. Hashkey Group owns one of two Hong Kong-regulated cryptocurrency exchanges, HashKey Exchange. It also runs a brokerage, asset manager and tokenization platform, amongst other entities. Ant was recently involved in a tokenized deposit trial with HSBC. Regulatory sandboxOne of the first matters on the agenda for the newly-formed Community is to make recommendations about using a wCBDC for interbank settlement of tokenized deposits. Following that, the project plans to work towards the design and implementation of the Project Ensemble Sandbox which will launch in the coming months. The HKMA has been actively testing its CBDC and commenced the second phase of the e-HKD pilot in March. This phase of the pilot program is slated to extend until mid-2025. The journey towards exploring CBDCs in Hong Kong dates back to 2017, with the authorities intensifying their focus on researching a potential e-HKD in 2021, spanning both wholesale and retail levels. With the participation of key stakeholders from both the public and private sectors, including leading financial institutions and technology firms, the initiative appears to be well-positioned to drive innovation and address the evolving needs of the financial industry in Hong Kong.

Japan’s financial authority has decided to regulate cryptocurrencies under the Financial Instruments and Exchange Act, classifying them as financial instruments. According to a report by The Asahi Shimbun, the Financial Services Agency (FSA) intends to include this reclassification in an amendment scheduled for submission during next year’s regular Diet session. Under the revised framework, local crypto exchanges will be required to provide detailed disclosures on the 105 tokens they handle. This includes the existence of issuers, underlying technologies such as blockchain, and price volatility risks. The proposed regulations will also subject these classified cryptocurrencies to insider trading rules. Issuers and individuals affiliated with exchanges will be prohibited from trading based on material non-public information, such as the suspension of trading or an issuer’s potential bankruptcy.Photo by Karola G on PexelsToken coverage in JapanAlthough the regulatory list contains 105 tokens, data from the Japan Virtual and Crypto Assets Exchange Association (JVCEA), cited in a New Economy report, indicates that Japanese exchanges currently list 119 cryptocurrencies, leaving unclear how the remaining digital assets will be regulated.  To enhance investor protection, the FSA will mandate specific disclosure requirements for issuers that use token launches for fundraising. These entities will be required to report on their latest business activities and future issuance plans annually. This legislative push follows a discussion paper published by the FSA in April, which proposed dividing crypto assets into two distinct categories. The first category includes tokens issued for raising capital, while the second comprises established cryptocurrencies that are not primarily used for issuer fundraising, citing Bitcoin (BTC) and Ethereum (ETH) as primary examples. Tax cut from 55% to 20%In parallel with these regulatory changes, the FSA plans to request tax reforms similar to those applied to traditional stock trading. Under Japan’s current tax code, taxes on cryptocurrency gains can reach as high as 55%. The agency proposes reducing this rate to a flat 20% in next year’s tax reform. Responding to the news on X, Changpeng Zhao, the founder and former CEO of Binance, welcomed Japan’s initiative to lower crypto taxes. However, he noted that the proposed 20% rate remains high compared to other jurisdictions, many of which do not levy capital gains taxes on crypto at all. Crypto ETF CFDs set to closeThe government’s move to tighten regulations is already reshaping the financial product landscape. One immediate impact is visible in contracts for difference (CFDs) linked to crypto ETFs. As reported by FinanceFeeds, IG Securities, the Japanese subsidiary of the London-listed IG Group, announced changes to its offerings. The firm will stop accepting new orders for CFDs tied to BlackRock’s iShares Bitcoin Trust and its Ethereum equivalent on Dec. 1. Open positions are scheduled to be automatically closed on Jan. 31 of next year. If clients do not settle their holdings prior to this date, the final settlement will be calculated based on the official closing price of that final day. This discontinuation adheres to an FSA decision that derivatives referencing Bitcoin or Ether ETFs must be regulated as crypto-related derivatives rather than standard ETF products. These instruments, now under the crypto-related derivative classification, fall under stricter rules regarding investor protection, operational oversight, and licensing. Japan’s latest regulatory and tax initiatives reflect a broader effort to bring clarity and investor protection to the country’s growing crypto market. As the framework evolves, the industry will be watching how the new rules influence participation and market structure. With lower taxes and stricter oversight on the horizon, both investors and exchanges may need to adjust, potentially reshaping liquidity and Japan’s overall appeal while prompting trading platforms to rethink their product offerings. 

Dubai-based Emirates NBD, one of the United Arab Emirates’ (UAE) top banks, has enabled a crypto trading service via its subsidiary bank, Liv Digital Bank. Liv Digital Bank has launched the crypto trading service through its Liv X mobile banking app. App users now have the ability to buy, hold and sell a range of cryptocurrencies. Users will have access to custody solutions. They can control both virtual currencies and fiat currencies from within one application.Photo by Markus Winkler on UnsplashAquanow collaborationThe offering has been brought online through a collaboration with digital assets infrastructure provider Aquanow. Taking to X, Aquanow CEO Phil Sham said that "incumbent institutions like Emirates NBD will play a pivotal role in driving the next wave of digital asset adoption.” Aquanow has acquired the necessary licensing from the Virtual Assets Regulatory Authority (VARA) in Dubai to enable the service offering on a compliant basis. Sham told Cointelegraph that the collaboration “showcases how traditional banking and digital assets can coexist, providing consumers with seamless, secure, and compliant access to the evolving digital economy.” Zodia as digital asset custodianZodia Custody, a virtual asset custodian that serves institutional clients, has been chosen to custody assets held as a result of crypto trading on the app. The custodian, a subsidiary company of British multinational banking group Standard Chartered, launched its service in Dubai back in 2023. Emirates NBD is government-owned and the UAE’s second largest bank. The service will facilitate users in trading Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA) and some other cryptocurrencies. The bank’s Group Head of Retail Banking and Wealth Management, Marwan Hadi, commented on the development, stating: “Offering cryptocurrency on Liv X is the next step towards the overall vision of Liv being a pioneer in innovation and excellence.” He added that “with the highest crypto adoption rate in the UAE, [Emirates NBD is] keen to launch [its] own virtual asset offering to capitalise on this trend.” This is not the first touch point with the crypto sector for the Emirates NBD subsidiary. Last year, Liv Digital partnered with tokenized real-world assets (RWA) firm Ctrl Alt. Accessing Ctrl Alt’s RWA tokenization expertise, Liv is opening investing opportunities for its customers in the area of tokenized assets. In November 2024, Emirates NBD signed up as a member of the Partior Network, the distributed ledger technology (DLT) clearing and settlement network. Partior uses tokenized instruments for the wholesale settlement of cross-border payments in conjunction with correspondent banks. In the past, the Dubai-based bank had made efforts to educate its customers with regard to the benefits of cryptocurrency and blockchain. Last year, American blockchain analysis firm Chainalysis reported that the Middle East and North Africa (MENA) accounted for 7.5% of global digital asset trading volume over the course of 12 months from July 2023 to June 2024. Chainalysis itself chose Dubai to set up its regional headquarters in May 2024.