Investigation launched into prominent Chinese blockchain figure Yao Qian

Ripple APAC executive predicts institutional adoption surge in 2024Fiona Murray, the Managing Director overseeing the Asia-Pacific region (APAC) at enterprise blockchain firm Ripple, envisions a substantial uptick in institutional adoption of cryptocurrencies in the upcoming year.Photo by Kanchanara on UnsplashEmphasis on AsiaMurray set out her predictions for the coming year in a thread of posts on the X social media platform on Monday. This foresight coincides with a notable upswing in interest from traditional financial institutions within the digital currency market, especially in the APAC region.Murray predicts an unprecedented surge in cryptocurrency adoption within financial institutions, underscoring a shifting landscape where companies increasingly leverage cross-border payment solutions powered by blockchain technology. She wrote:”Entering 2024, we are expecting to see a surge in institutional adoption of crypto by financial institutions, especially in the APAC region. This includes the greater usage of cross-border payments among companies.”Web2 firms to integrate blockchainThis departure from traditional payment methods signifies a growing confidence in the security and efficiency offered by digital currencies. Ripple’s APAC executive emphasizes the escalating investments by well-established Web2 companies and legacy payment institutions as they integrate blockchain utility into their offerings.“More than ever, leading Web2 companies and legacy payments institutions are investing resources to integrate blockchain utility into their services — ‘Nearly half of APAC finance leaders expect blockchain to have a significant impact on business in the next 3 years.’” she stated.This positive outlook is reinforced by proactive measures taken by countries like Singapore and Hong Kong, positioning themselves as global leaders in cryptocurrency and blockchain adoption.Crypto ETFsThe continued rollout of crypto exchange-traded funds (ETFs) adds to the level of institutional adoption that has occurred in 2023 and is likely moving forward into 2024. Hong Kong has been the regional leader in this regard within APAC. The Hong Kong Stock Exchange was the first platform in Asia to offer crypto asset exposure by way of an ETF in December of last year. Since then, several such ETFs have been listed within the Chinese autonomous territory.Last month, multinational investment bank UBS joined industry peers like HSBC in following suit to offer institutional clients access to crypto-linked ETFs. Going into 2024, most industry commentators seem to be convinced that the emergence of BlackRock, the world’s largest asset manager, in promoting a spot bitcoin ETF in the United States means that approval is likely over the course of the next few months. That milestone will undoubtedly have positive reverberations for institutional digital asset adoption in the APAC region also.Strategic importance of APACThe APAC region holds strategic importance for Ripple’s expansion plans, given its rapid technological advancement and openness to innovation. In Singapore, the company received “in principle” approval from the Monetary Authority of Singapore in June. That was upgraded to full license approval in October.Singapore and Hong Kong, among other countries in the region, have emerged as frontrunners in the global cryptocurrency market, fostering regulatory environments conducive to blockchain innovation.These factors underscore the region’s crucial role in Ripple’s global strategy, aligning with the company’s vision and objectives as it seeks to grow its business.

China Unveils Blockchain-Powered Data ExchangeChinese government officials have announced the launch of a data exchange leveraging blockchain technology during the 2023 Hangzhou Summit in China on Wednesday.According to local media reports, the Hangzhou Data Exchange, introduced at the summit held in Hangzhou, aims to facilitate seamless buying and selling of Web3 data across enterprises. The event garnered participation from over 300 companies, including tech giants Alibaba Cloud and Huawei, marking a significant step towards embracing decentralized technology for data management.Photo by Xiaolin Zhang on UnsplashEnabling Web3 data tradingIt’s understood that the Hangzhou Data Exchange has been established with the aspiration of revolutionizing the trading landscape for enterprise information technology data by harnessing the capabilities of distributed ledger technology. Officials emphasize that the platform’s implementation will ensure that transactions conducted through the exchange remain unalterable and traceable.Chen Chun, the Director of the National Laboratory of Blockchain and Data Security, provided insights into the exchange’s advanced features, stating that it integrates research blockchain, privacy computing, and other cutting-edge technologies to establish a secure and confidential environment for sharing and utilizing data across departments and regions.Hangzhou’s digital economy sector has demonstrated significant growth, surpassing 500 billion Chinese yuan (equivalent to $69 billion) in 2022. This accounted for nearly 27% of the city’s total GDP. It suggests that the city is putting a strategic focus on technological development and innovation.Complex blockchain strategyChina’s stance on blockchain technology has been complex. While the Chinese authorities have been rigorous in regulating private blockchain enterprises, they have simultaneously championed government-led blockchain initiatives.President Xi Jinping, during the inauguration of the 2023 Shanghai Cooperation Organization Conference (SCO), highlighted the significance of central bank digital currencies (CBDC) in expanding the use of local currencies for settlements among SCO member countries. In a move to stimulate domestic spending, the Chinese government recently distributed over 100 million yuan worth of digital yuan CBDC to its residents.China’s promotion of its digital yuan has been unrivaled. Over the course of recent months, various initiatives have been launched to further the use of the CBDC. These initiatives have included paying state employees with the currency in Changshu, integration of the currency into the education system in Jiangsu province, and the installation of digital yuan ATMs in Hainan, among many other such projects.Likewise, when it comes to metaverse development, a series of initiatives have been established recently. Henan province established a metaverse fund in May to support metaverse-related projects. In the same month, a National Blockchain Center was established to develop talent within the sector. Around the same time frame, the city of Zhengzhou announced proposals geared towards supporting the growth and development of metaverse companies.The unveiling of the Hangzhou Data Exchange underscores China’s ongoing determination to harness blockchain’s potential, in this case relative to enhancing data trading and management within the Web3 ecosystem.

According to India’s Finance Ministry, Binance and a number of other virtual asset service providers (VASPs) are not tax-compliant in India. Cases of tax evasion detectedNews of this matter emerged via written answers, published on Dec. 2, provided in response to parliamentary questions which had been put to India’s Finance Minister, Pankaj Chaudhary. The minister confirmed that a “few cases of evasion of Goods and Services Tax (GST) by cryptocurrency exchanges and investors” had been detected. The document goes on to list 17 crypto entities who are currently being investigated on that basis, with Binance being the most well-known among them. Notable Indian exchanges listed include WazirX, CoinDCX and CoinSwitch. Chaudhary included details of cases booked against these exchanges. In Binance’s case, it was required to pay 722 crore Indian rupees, which amounts to around $85.2 million. While Binance doesn’t appear to have incurred penalties, in the case of WazirX, the exchange had an assessed tax shortfall of 40.51 crore Indian rupees ($4.78 million), but after fees and interest, it was provided with a demand for 49.19 crore Indian rupees ($5.8 million). CoinDCX and CoinSwitch were also assessed with a demand for 20.86 crore Indian rupees ($2.46 million) and 19.38 crore Indian rupees ($2.28 million), inclusive of penalties and interest. In the case of WazirX, CoinDCX and CoinSwitch, the exchanges have had to pay an additional 21%, 24% and 37% respectively in fees and interest over and above their original tax liabilities.Photo by Naveed Ahmed on UnsplashPrevious tax and regulatory issuesTo date, the Finance Ministry has recovered 122.3 crore rupees ($14.4 million) as part of these investigations. Binance has as yet not paid the funds demanded by the authorities. It emerged in August that India’s Directorate General of Goods and Services Tax Intelligence (DGGI) had imposed an $86 million tax demand on the company, with Binance contesting the assessment. The global crypto exchange platform had previously paid a $2.5 million fine for having engaged with Indian customers despite not having been approved by the authorities to trade within the country. After a number of months during which it didn’t trade within the Indian market, in August Binance regularized its standing and gained approval to trade. In a request for comment on the matter from Cointelegraph, a Binance representative stated: “We continue to work closely with regulatory authorities and attend necessary hearings to address any concerns and questions. Binance remains responsive and cooperative and is committed to addressing all necessary tax inquiries.” The company recently hired UK-based accounting and business advisory firm Grant Thornton to assist with accounting, tax and audit preparedness. In the case of WazirX, a spokesperson said that “GST law on cryptocurrencies was not clear in India,” and that on this basis, the company found itself being assessed for non-payment of the applicable taxes.