BlackRock Investment Marks its Return to India

Hyundai Motor Harnesses Blockchain to Double Down on Climate Change EffortsSouth Korean auto giant Hyundai Motor Group is taking significant strides in tackling global climate change concerns by harnessing the power of blockchain technology.Photo by Chris Liverani on UnsplashTracking carbon emissionsToday, Hyundai Motor and Kia, two affiliates of the group, have introduced the Supplier CO2 Emission Monitoring System (SCEMS), a carbon emission tracking solution based on blockchain technology. This system marks a pivotal step towards intensifying their efforts to reduce carbon emissions across their extensive supply chain.The SCEMS is designed to record and manage carbon footprints at every stage of the manufacturing process, starting from the extraction of raw materials to the production and delivery of parts and vehicles. This comprehensive approach allows Hyundai and Kia to gain better control over their carbon reduction initiatives.The urgency of addressing climate change has made it essential for organizations of all sizes to manage and decrease their carbon emissions. However, calculating carbon footprints requires an understanding of complex standards and intricate mathematical processes.Supply chainTo address these challenges, Hyundai Motor and Kia are providing the SCEMS to hundreds of their suppliers free of charge, offering them the necessary tools to effectively curb carbon emissions. The SCEMS employs artificial intelligence modeling, which automatically computes carbon emissions and predicts future projections as suppliers from various industries input their data into the system.Previously, these suppliers had to rely on external experts to perform such calculations. By adopting Hyundai’s new system, suppliers can now independently set their carbon reduction goals and efficiently manage their activities, thereby cutting costs and enhancing their competencies.Incorporating blockchainMoreover, Hyundai Motor and Kia anticipate that the incorporation of blockchain technology into their operations will bolster the reliability of their data, increasing their credibility among global evaluators of environmental, social, and governance (ESG) management.A Hyundai official emphasized that the scope of eco-friendly products now encompasses their entire lifecycles and supply chains. The company aims to lead the charge in building a sustainable and green supply chain.In line with this commitment, Hyundai Motor and Kia in February joined the Carbon Disclosure Project’s (CDP) Supply Chain Program, a nonprofit organization that oversees a global disclosure system for investors, companies, and regions to manage their environmental impacts. As part of this initiative, the Hyundai affiliates have also provided education to their suppliers to aid them in achieving carbon neutrality.Under the CDP’s Supply Chain Program, Hyundai affiliates’ suppliers need to submit data on energy consumption and greenhouse gas emissions, along with carbon neutrality strategies, sustainability objectives, and renewable energy transition plans to the nonprofit organization.

Shanghai Embraces Blockchain, AI, and Digital Yuan with New GuidelinesIn a bid to stay at the forefront of technological advancements, the government of China’s largest and most populous city, Shanghai, has issued a set of guidelines aimed at promoting the widespread adoption of blockchain, the metaverse, and the digital yuan.Photo by Edward He on UnsplashIntegrating blockchain technologyThe objective of the measure is to further the use of these technologies across various industries within the city. Leading enterprises across a range of industry sectors, such as automotive, commodity trading, and e-commerce, are now required to look to incorporate these technologies into their operations.The guidelines, which were published last Tuesday, outline the government’s commitment to providing support for platforms that seek to enhance digitalization in production, operations, and management processes. Additionally, they emphasize the development of information technology services centered around big data, blockchain, the Internet of Things, artificial intelligence, and the mobile Internet.Bolstering commodity tradingA key focus for the government is the establishment of a robust internet system to bolster its local commodity trading service. This move is driven by a reliance on “the national financial factor market,” which aims to upgrade the over-the-counter derivatives platform for bulk commodities and strengthen the linkages between futures and cash.Furthermore, the guidelines pave the way for expanding e-commerce service platforms for industrial products, setting up a digital transformation service platform, and fostering the development and application of data resources.Shanghai’s status as China’s financial hub makes it an ideal testing ground for innovative technologies like blockchain and AI. However, China’s approach to cryptocurrency is more complex. It involves support for blockchain technology while at the same time applying strict measures against crypto trading and mining.Aligning with central government policyThe Chinese government’s support for blockchain technology stems from its recognition of blockchain as the underlying foundation of cryptocurrencies. Judging by the blockchain initiatives forwarded by the central government and regional Chinese administrations in recent months, it’s clear that China is keen to develop leadership in the use of blockchain across various sectors. It takes a different view, however, when it comes to projects related to decentralized cryptocurrencies and crypto trading.In recent years, China has cracked down on cryptocurrency activities. In 2013, the government banned initial coin offerings (ICOs), a fundraising method used for cryptocurrency projects. Subsequently, cryptocurrency exchanges were banned in 2017, followed by a prohibition on cryptocurrency mining in 2021.Several factors contribute to the Chinese government’s cautious approach to cryptocurrency. One major concern is financial stability, as crypto can be exploited for illicit activities like money laundering. According to a recent report, Chinese authorities are redoubling their efforts in pushing back against the use of crypto as they’re finding that it is being used to exploit capital control loopholes.These recent guidelines from Shanghai’s administrators aim to capitalize on the transformative potential of emerging technologies while ensuring prudent regulation and control over cryptocurrency-related activities in line with current central government policy emanating from Beijing.

The Asia Web3 Alliance Japan, an agency that regards itself as a bridge between the Web3 ecosystem in Asia and Japan’s broader business sector, has reached out to the Securities and Exchange Commission in the United States with a view towards establishing a strategic collaboration.Photo by Clement Souchet on UnsplashFocus on Web3 regulatory innovation & tokenizationThe President of the organization, Hinza Asif, wrote to SEC Crypto Task Force Chairperson and SEC Commissioner, Hester Peirce, on the subject, on March 25. The letter, subsequently published by the SEC, sets out a proposal that centers on a strategic U.S.-Japan partnership relative to Web3 regulatory innovation and tokenization. The Japanese agency, which has set out cross-border synergy as one of its objectives, calls for collaboration between Japan’s Financial Services Agency, the Japanese Ministry of Economy, Trade and Industry and the Bank of Japan with the U.S. regulator. The Alliance proposes that the goal of that partnership would be the establishment of regulatory clarity in respect of the Web3 sector, together with the fostering of interoperability between a developing Web3 ecosystem in the U.S. and the one that’s developing in Japan. Token classification frameworkDelving deeper into proposal specifics, Asif sets out the formation of a harmonized token classification framework as a key objective. The proposal suggests that a distinction needs to be made between tokenized securities, utility tokens and non-security digital assets.  The alliance believes that right now, token classification is unclear, with projects struggling to understand what category their token falls within from a regulatory perspective. There’s a lack of token offering frameworks. While it sees that further work is required, the Asia Web3 Alliance Japan is encouraged by progress made by the SEC’s Crypto Task Force in identifying security categories. With this cross-border collaboration, the Japanese crypto advocacy group believes that there is an opportunity to achieve regulatory interoperability on an international basis. That would facilitate compliant cross-border token issuance. On that basis, the alliance suggests that standards be developed such that regulatory consistency is achieved internationally when it comes to items such as digital asset trading, custody and token issuance. The proposal sets out a need for reciprocal disclosure requirements between the two jurisdictions where cross-border token issuance is concerned. It advocates for mutual recognition of what it terms “compliant tokenized offerings.” Bringing safe harbor to JapanAnother focus area contained within the proposal is the suggestion of a need to implement a safe harbor approach in Japan for early-stage token projects in line with what has been put forward in the U.S. Peirce first put forward a token safe harbor proposal in the U.S. in 2020. It sets out to provide exemptions over a defined initial period for certain token issuances. The idea behind it is to enable these early-stage projects to innovate and mature without getting bogged down in a regulatory quagmire. The establishment of a U.S.-Japan Web3 regulatory roundtable is another strand contained within the proposal. This would provide a mechanism for ongoing dialogue between stakeholders such as regulators, industry leaders and legal experts.