Japan’s Hokkoku Bank to Launch Local Digital Currency in Summer

Hong Kong’s HaskKey launches app following regulatory approvalHong Kong-based cryptocurrency firm HashKey has unveiled the HashKey Exchange app, which has received the approval of the Securities and Futures Commission (SFC).News of the app launch emerged following insights shared by HashKey’s Chief Operating Officer, Livio Weng, in an interview with The Block recently.Photo by Manson Yim on UnsplashAppealing to retail tradersThe HashKey Exchange app went live on Wednesday, having received regulatory clearance from Hong Kong’s securities regulator the previous Friday. This achievement allows the app to offer full mobile trading capabilities. Prior to this milestone, HashKey had been primarily catering to professional investors under a voluntary licensing scheme.With the new app, Hongkongers can now conveniently purchase bitcoin and ether, utilizing either Hong Kong dollars or US dollars, directly from their local bank accounts. The app launch is significant as HashKey has become one of Hong Kong’s first fully compliant retail-facing crypto trading platforms. “We’ve recorded large trading volume since we began to serve retail users,” Weng stated. The move aligns with the Hong Kong government’s efforts to bolster the virtual asset sector, which was set in motion one year ago with various policy shifts.These shifts included the introduction of a mandatory licensing scheme for cryptocurrency platforms, enabling them to offer tokens with large market capitalizations to retail traders. The new licensing regulations officially took effect in June, with a one-year grace period, though no new exchanges have been approved to date. HashKey and its rival, OSL, had their previous licenses upgraded in August.Developmental challengesHong Kong has faced several challenges on this journey. While the new regulations are largely in line with international norms, the process has been notably expensive, particularly against the backdrop of a bearish crypto market.The lingering fallout from the JPEX scandal, a cryptocurrency exchange allegedly involved in fraudulent activities, continues to impact Hong Kong’s virtual asset landscape. The SFC first raised concerns about JPEX in mid-September, and since then, it has moved to tighten regulation in response, having received thousands of complaints in relation to JPEX.Despite these challenges, HashKey Group has reported significant activity on its retail platform since its launch in August, with a total trading volume exceeding US$600 million. On October 30, the 24-hour trading volume exceeded US$100 million.Planned token launchIn a move designed to incentivize new users, HashKey Exchange has introduced its platform token, HSK, which is slated to be officially listed on the exchange next year. With a total supply of 1 billion HSK, the company has specified that these tokens will not be initially sold to retail investors, emphasizing its long-term vision for the project.Established in Hong Kong in 2018, HashKey Group operates a digital asset brokerage and a venture capital arm. HashKey Exchange earned the distinction of becoming Hong Kong’s second licensed exchange in November of the previous year, following in the footsteps of OSL. Notably, five companies have applied for the new licensing scheme, according to the SFC, while several other exchanges have expressed their intent to pursue similar approval.

TRYB Emerges as Turkish Alternative to Dollar-Pegged StablecoinsIn a market typically dominated by dollar-backed stablecoins like Tether (USDT) and USD Coin (USDC), a new player has emerged in Turkey to operate alongside those dominant stablecoins.According to a report by CoinDesk on Friday, BiLira’s TRYB stablecoin, pegged to the Turkish lira (TRY), has rapidly climbed the ranks to become the world’s second-largest non-US dollar-pegged stablecoin. It currently trails Tether’s euro-pegged EURt, which according to Coingecko data, currently holds a market cap of $221 million. In just three weeks, TRYB has skyrocketed, quadrupling its market cap to $136.10 million.Photo by Oleksandr P on PexelsMarket cap volatilityHowever, TRYB's market cap had fallen off a cliff on Friday, dropping from $135 million earlier in the day to $40 million. TRYB, an Ethereum-based stablecoin, offers a unique proposition in that it is pegged to the Turkish lira, allowing users to exchange 1 TRYB for 1 TRY. The stablecoin offering, which is administered by Istanbul-based BiLira, is underpinned by 100% fiat reserves held in Turkish banks.The Turkish lira has earned its reputation as one of the most volatile fiat currencies globally, often experiencing fluctuations against the US dollar. Over the course of the last five years, the currency has lost 94% of its value when benchmarked against the performance of the US dollar.In response to this volatility, TRYB has found its purpose as a medium of exchange. It can act as a gateway to transition user’s Turkish lira into cryptocurrencies and vice versa. This trend aligns with the global use of stablecoins as the foundation of crypto trading pairs, providing traders with a stable asset while sidestepping fiat currency’s unpredictability.Exiting the liraThe US Federal Reserve acknowledged the significance of stablecoins in December 2022, highlighting their role in facilitating crypto trades, serving as collateral for crypto loans, and minimizing inefficiencies tied to fiat-to-crypto conversions. In fact, stablecoins account for over 80% of the trading volume on centralized exchanges, attesting to their pivotal role in the crypto ecosystem.It’s likely that the Lira-pegged stablecoin will act as a means to access other cryptocurrencies and US dollar-pegged stablecoins like USDT and USDC, rather than be considered as a rival or replacement. That’s by virtue of the ongoing difficulties of the Turkish sovereign currency which it tracks. So long as the lira continues to erode in terms of buying power, it’s likely that citizens will be looking for avenues to escape from that erosion of value.Increased interest in cryptoGiven this monetary backdrop in Turkey, it shouldn’t surprise anyone to learn that interest in crypto is on the rise. In a recent report published by Seychelles-based cryptocurrency exchange KuCoin earlier this week, a significant increase in the number of crypto investors in Turkey over the course of the past eighteen months has been identified.The report found that 52% of the adult Turkish population have participated in crypto-related investments. Over the past 18 months, the number of Turkish adults embracing crypto has risen to that 52% level from 40%.

Zodia Markets Achieves Crypto Broker-Dealer Approval in UAEZodia Markets, the London-based digital asset marketplace backed by Standard Chartered Ventures, has achieved the milestone of receiving In-Principle Approval (IPA) to operate as a cryptocurrency broker-dealer in Abu Dhabi’s over-the-counter (OTC) market.Photo by Kamil Rogalinski on UnsplashADGM green lightThat’s according to a press release published by Zawya, a business intelligence media outlet that covers the Middle East and North Africa (MENA) region. The regulatory approval comes from the Abu Dhabi Global Market (ADGM), a renowned financial hub in the United Arab Emirates (UAE).Salem Mohammed Al Darei, CEO of the ADGM Authority, extended his congratulations to Zodia Markets on this achievement and welcomed them into the ADGM ecosystem. The In-Principle Approval marks the third step in a comprehensive five-stage application process outlined by ADGM. The subsequent stages involve securing final approval and undergoing an “operational launch” test to ensure seamless functionality, with a need to follow ADGM’s guidance meticulously.“The harmony of traditional and new-age finance in Abu Dhabi with an international leading digital asset firm such as Zodia Markets that is backed by the well-established Standard Chartered will contribute to further enhancing the attractiveness of ADGM as a preferred destination for global entities,” Al Darei stated.Expanding global footprintZodia Markets’ strategic decision to enter the UAE market aligns with the growing prominence of the UAE in the digital assets industry. This move compliments Zodia Custody’s decision to launch a crypto custodian service in the UAE emirate of Dubai back in May. While both businesses are independent of each other and fully segregated, they share the very same parent company in Standard Chartered.At the time, a memorandum of understanding (MoU) was signed by parent company Standard Chartered alongside the Dubai International Financial Center (DIFC).This latest move bolsters the geographical presence of Zodia Markets but also provides institutional investors in the Middle East and Africa with convenient access to the world of digital assets, thereby strengthening the company’s global footprint in the digital asset space.News of the firm’s intentions to enter the UAE market emerged last November. The company’s thinking at the time was that it could exploit an opportunity to expand in the MENA region due to more progressive regulation while the US and Europe were perceived to be developing at a much slower pace from a regulatory point of view, making them unattractive comparatively.ADGM has been at the forefront of shaping the regulatory landscape for companies involved in virtual assets. In April, it put forward a legal framework for decentralized tech. As part of its commitment to fostering innovation, ADGM recently granted permission for the operation of a virtual asset platform named M2 and issued a license to the cryptocurrency exchange Rain in July.Usman Ahmad, CEO of Zodia Markets, articulated the company’s mission, stating:“Our goal is to provide institutions seamless access to trade digital assets without compromising on the standards and controls that exist in traditional financial markets.”Zodia Markets is a joint venture between Standard Chartered and Hong Kong-based digital assets platform OSL, which also expressed its enthusiasm for the In-Principle Approval.