Report Reveals Global Trends and Online Discourse on Crypto Travel Rule

Aevo, the Singaporean crypto derivatives platform, is gearing up to broaden its ecosystem by allowing other protocols to build on its rollup infrastructure. ‘The future is modular’Currently, Aevo exchange is the sole application on its rollup, but according to Julian Koh, co-founder of Ribbon Finance, the platform's parent protocol, the intention is to open it up for other developers. On Tuesday, Koh retweeted a social media post by the company which stated “The future is modular,” adding the comment “build whatever.” Koh told The Block that "the primary angle here is we are currently built on our own rollup — but Aevo exchange is currently the only app on this rollup. Our plan is basically to open this up for other [developers] as well and build an ecosystem around our exchange."Photo by Shubham Dhage on UnsplashTransitioning to CelestiaAevo, specializing in options and derivatives trading, operates on its own Layer 2 network, built using the OP Stack and running atop the Ethereum blockchain. In a cost-saving initiative, the platform plans to transition to Celestia for storing transaction data in the near term. Celestia launched on mainnet last October with the aim of enhancing blockchain scalability. It’s a modular data availability network which securely scales relative to the number of network users. This expansion is part of a broader roadmap set to be unveiled in the coming weeks, as Aevo looks towards achieving aggressive growth. According to DeFi data aggregator DeFiLlama, Aevo has already been hitting ever higher numbers in recent months. Only two months ago, the protocol had $10 million total value locked (TVL). At the time of writing that metric has increased to $50 million. Last month, the platform achieved a new record-high weekly trading volume level in excess of $500 million. Julian Koh attributes this growth in part to Aevo's yield-bearing balances. Users deposit their crypto, which is then sent to MakerDAO to generate yield. In return, users receive a derivative token to trade on the Aevo platform, providing a mechanism for traders to earn yield while actively engaging in trading. 2023 rebrandRibbon Finance, which initially launched Aevo separately, merged the projects under the Aevo branding in July 2023. As part of the rebrand, an Aevo token will be introduced, with a 1:1 exchange rate for RBN token holders during migration. Post-rebrand, Aevo plans to roll out an incentive program aimed at boosting the platform's metrics.  Looking ahead, Aevo plans to delve deeper into yield offerings, drawing inspiration from Ribbon Finance. The platform aims to launch yield strategies in Q1 of this year, allowing users to lock up their crypto in various setups designed to generate returns, with the tokens being unavailable for trading during this period. One notable strategy that has contributed to Aevo's appeal is the pre-launch trading of upcoming tokens. The platform supports trading for tokens expected to launch soon, often through airdrops, providing an opportunity for traders to hedge against airdrops or lock in specific prices before the official launch. The project team membership draws on past experience at Coinbase, Kraken and Goldman Sachs, with academic backgrounds attained from Stanford, MIT and Cornell University. 

Recent developments in the cryptocurrency market reveal that mainland Chinese citizens will face restrictions in purchasing Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong. This restriction stems from China's ban on crypto transactions, which has been in effect for several years. Bloomberg data analyst Jack Wang highlighted this issue, indicating that the upcoming launch of spot Bitcoin and Ether ETFs in Hong Kong will not facilitate market access for investors in mainland China.Photo by Traxer on UnsplashSpot Bitcoin and Ether ETFs approved in Hong KongDespite Hong Kong's approval of spot BTC and ETH ETFs, major Chinese asset managers such as China Asset Management, Harvest Global Investments, and Bosera have established these products through their Hong Kong subsidiaries. However, despite their close ties with mainland China, these ETF issuers are unable to offer Bitcoin or Ether exposure to investors within the jurisdiction due to regulatory constraints. Exclusion of mainland Chinese investorsWang emphasized during a Bloomberg webinar that mainland Chinese citizens will not be able to participate in these ETFs, citing a statement from the Chinese State Council issued in September 2021. This statement prohibits financial institutions from engaging in crypto-related transactions, including account creation, fund transfers, and clearing services. As a result, Chinese investors are unlikely to engage with these products in the short term. Impact on regulatory environment and market accessWang expressed skepticism about the potential impact of spot Bitcoin and Ether ETFs in Hong Kong on the regulatory environment in mainland China. He stated that the launch of these ETFs is unlikely to open the crypto market to Chinese investors in the foreseeable future. Thomas Zhu, head of digital assets at China Asset Management, noted that the eligibility of mainland Chinese investors to acquire crypto ETFs in Hong Kong depends on forthcoming regulatory modifications. He highlighted the Mainland-Hong Kong Stock Connect, which allows mainland investors to trade eligible Hong Kong stocks and ETFs since 2014. Comparison with U.S. Bitcoin ETF marketDespite optimism surrounding the launch of spot crypto ETFs in Hong Kong, Bloomberg analyst James Seyffart drew attention to the significant difference in market size between the U.S. and Hong Kong ETF markets. Seyffart pointed out that Bitcoin ETFs in the United States have more assets than all ETFs in Hong Kong combined, emphasizing the vast disparity in market scale and impact. As the launch date for spot Bitcoin and Ether ETFs in Hong Kong approaches, stakeholders continue to monitor regulatory developments and market dynamics closely. 

The South Korean port city of Busan yesterday convened a meeting to reaffirm the city’s commitment to establishing a blockchain-specialized cluster in the region.  The meeting took place at the Busan Technology Innovation Center located in Busan International Financial Center (BIFC), attended by Busan Vice Mayor for Economic Affairs Kim Kwang-hee, the Korea Internet & Security Agency Director Lee Sang-joong, Busan Technopark Chairman Kim Hyung-gyun and representatives of companies stationed at the BIFC. Photo by Dane Kim on Unsplash$15 million investment by 2026In a bid to foster blockchain technology companies in the region, the local government has outlined plans to invest a total of KRW 20 billion, or over $15 million, in the blockchain cluster project for the next three years until 2026. The Busan government and the central government are each responsible for providing half of the project’s investment fund. Starting off, KRW 6.2 billion will be allocated this year. Among the project’s main objectives are identifying local startups with high potential for blockchain technology integration, facilitating their connections with VCs for fundraising and promoting the project’s achievements. Participating companies are set to share their annual performances this upcoming December.  Most importantly, the city aims to attract blockchain companies to the region, lay business foundations for them and transform the city into a blockchain industry hub.  Ambition to become a global blockchain hub Vice Mayor Kim said the city will keep supporting local blockchain startups so that these entrepreneurs can settle down in Busan, with the aim of turning the city into a global blockchain hub.