Hong Kong Legislator Courting US Crypto Exchange Coinbase

Binance co-founder and former CEO, Changpeng Zhao (CZ), has partnered with the authorities in the Central Asian republic of Kyrgyzstan to provide advice on crypto regulation and the development and adoption of blockchain technology. It’s understood that CZ has signed a memorandum of understanding (MOU) to this effect with the National Investments Authority (NIA), a state authority that falls under the direction of the President of the Kyrgyz Republic. The NIA promotes foreign direct investment, assisting foreign companies in developing business opportunities within Kyrgyzstan. Photo by Abai K on UnsplashCrypto & blockchain ecosystem developmentIn a statement published on X on April 3 by the President of the Kyrgyz Republic, Sadyr Zhaparov, the president outlined that in accordance with the MOU, the parties will cooperate on the development of the crypto and blockchain ecosystem. Breaking that down further, the president said that this cooperation will involve the provision of technical, infrastructural and technological support and expertise. Additionally, it will involve collaboration towards the implementation of related educational initiatives. Zhaparov added: “This cooperation marks an important step towards strengthening technological infrastructure, implementing innovative solutions, and preparing highly qualified specialists in blockchain technologies, virtual asset management, and cybersecurity. In light of the rapid global evolution of digital technologies, such initiatives are crucial for the sustainable growth of the economy and the security of virtual assets, ultimately generating new opportunities for businesses and society as a whole.” ‘Crypto adoption one country at a time’CZ reacted to this X post by the President of the Kyrgyz Republic, stating: “Kyrgyzstan. Crypto adoption, one country at a time.” He also remarked that this event had brought Zhaparov to X, given that this was his first post on the platform, with an account registered last month. Steve Milton, co-founder and CEO of Web3 wallet project Fintopio and a former Binance marketing executive, commented on the development. Milton stated that Kyrgyzstan is a forward-thinking country, while interpreting CZ's involvement as a step that will help move adoption forward. Additional advisory activityIn another X post, CZ provided details on his advisory activity. He stated: “I officially and unofficially advise a few governments on their crypto regulatory frameworks and blockchain solutions for gov efficiency, expanding blockchain to more than trading. I find this work extremely meaningful.” Reports emerged in January that Malaysian Prime Minister Datuk Seri Anwar Ibrahim had discussed digital finance policy matters with CZ. The Binance co-founder said that those discussions revolved around digital asset regulation and risks related to such assets. Furthermore, cross-border collaborations and collaborations between industries were discussed. In December CZ met with the King of Bhutan. Prior to that visit, he posted a link to an article on X that outlined that the Kingdom of Bhutan has accumulated in excess of $1 billion in Bitcoin. At that time, the Binance co-founder said that many nation states will use Bitcoin and other cryptocurrencies as reserve assets. In the past, commentators have identified Kyrgyzstan as having considerable potential for crypto mining, given ample hydroelectric generation within the mountainous country. However, crypto mining tax receipts as of the end of last year suggest that crypto mining still remains a niche activity in the Kyrgyz Republic.

Samjong KPMG and Xangle to explore on-chain data for crypto accountingSamjong KPMG, the South Korean branch of accounting giant KPMG, is set to collaborate with digital asset data research platform Xangle to conduct a joint study focused on discovering different ways to apply on-chain data in the realm of cryptocurrency accounting. That’s according to a report by local news outlet The Korea Economic Daily.On-chain data encompasses all transaction records found on a blockchain. This type of data enables real-time verification of transactions, benefiting from the blockchain’s transparency and decentralized framework. Despite these advantages, the complexity of accessing and interpreting on-chain data is often seen as a barrier to entry, requiring specialized knowledge.Photo by Sasun Bughdaryan on UnsplashCrypto accounting and tax filingThe partnership between the two entities is poised to tackle challenges in the crypto sector faced by enterprises. Samjong KPMG will use this collaboration to improve their cryptocurrency consulting services, offering solutions in areas like virtual asset issuance, asset management and disclosure, internal controls and the accounting and tax filing complexities associated with cryptocurrencies.ERP solutions for virtual assetsMeanwhile, Xangle will have the opportunity to gain insights into the practical needs and concerns of businesses in relation to on-chain data as the company is currently developing enterprise resource planning (ERP) solutions for virtual assets. The joint effort will enhance Xangle’s ability to align technical data with real-world business applications.Park Sung-bae, a Partner at Samjong KPMG, commented on this development, stating that the accounting firm plans to utilize the outcomes of their joint study with Xangle to address the uncertainties surrounding virtual asset disclosure requirements. This initiative is aimed at improving accounting transparency within South Korea’s cryptocurrency market.Lee Hyun-woo, Co-CEO of Xangle, highlighted that the company has concentrated on establishing the necessary infrastructure for processing on-chain data and conducting research to deepen their understanding of it. He added that their latest collaboration with Samjong KPMG will enhance Xangle’s expertise in the areas of cryptocurrency taxes and accounting. Lee underlined the platform’s commitment to streamlining the accounting processes related to virtual assets, viewing it as an initial step towards facilitating broader Web3 adoption.

Singapore’s DBS Bank, the largest bank in Southeast Asia with assets totaling $739 billion, has launched a pilot project that utilizes blockchain technology for the purpose of distributing government grants. According to a report from Fintech News Singapore, the bank has partnered with Enterprise Singapore (EnterpriseSG) and the Singapore Fintech Association (SFA) to establish the pilot program. The objective is to realize greater efficiency, governance and user experience where programmable grant disbursements are concerned, as a direct consequence of bringing blockchain technology into the equation. Purpose-bound money The pilot program relies on the use of a protocol known as purpose-bound money (PBM). A whitepaper relative to PBM was first published in 2023 by the Monetary Authority of Singapore (MAS). In developing the protocol, MAS had collaborated with DBS, alongside Amazon, the International Monetary Fund (IMF), the Bank of Korea, Banca d’Italia and JPMorgan-owned blockchain platform Onyx. PBM enables the sender of funds to specify certain conditions relative to funds released. This may include such items as validity periods or a set of controls on how funds can be spent by the recipient. Such conditions can be programmed in through the use of smart contracts. Baking specific parameters in from the outset in turn empowers the distributor to automate disbursements to beneficiaries. With disbursements automated, the process realizes efficiency gains. Manual oversight can be cut out of the process entirely.  DBS noted a previous program established during the Singapore Fintech Festival in 2023. It involved 27 local fintech firms. Prominent among them were Advance Intelligence, Experian Singapore, Intersystems, Dobin and Aspire. DBS Bank effected such payments over its permissioned blockchain, ensuring that specified recipients received the grants only when specific parameters had been met. SFA President Shadab Taiyabi commented on the pilot project, stating:“The solution is designed to streamline business grant disbursements that enables local companies to receive payouts more quickly and efficiently, providing them with additional capital to expand their key business areas.” Taiyabi added that the SFA will continue to support collaborations between the public and private sectors relative to programmable grant disbursements as Singapore works towards its Smart Nation objectives.Photo by Mike Enerio on UnsplashEfficiency gains Han Kwee Juan, DBS Bank’s country head, emphasized the efficiency gains, stating: “Smart contract technology automates and streamlines grant disbursements for government agencies to enable faster, more secure disbursements and payments.” While DBS has progressed this project as a consequence of its collaboration with MAS on PBM, the bank has also been working with the Singaporean regulator on Project Orchid, a project which aims to progress technology and competencies relative to the development of a digital Singaporean dollar. Similarly, it has participated in Project Guardian, an asset tokenization initiative between policymakers and the financial industry. Earlier this month, DBS entered into a collaboration with Ant International, the international division of the Ant Group which in turn is an affiliate of Chinese e-commerce behemoth, Alibaba, with the aim of providing treasury tokens to improve treasury and liquidity management.