Bank of Korea and Samsung Team Up for Offline CBDC Research

Ripple Exec: Clear Regs Helped Japanese Market Withstand Crypto WinterEmi Yoshikawa, the Vice President of Strategy & Operations at business-focused crypto solutions provider Ripple, has attributed the Japanese cryptocurrency market’s ability to withstand the recent crypto winter to well-defined regulations.©Pexels/WorldspectrumSecurity breach at Mt.GoxIn a recent interview with Korean blockchain media outlet Digital Asset, Yoshikawa noted that Japan implemented regulations on cryptocurrencies earlier than other countries, in part due to the 2014 security breach at the Tokyo-based Bitcoin exchange Mt.Gox that resulted in investor losses.The Mt.Gox exploit prompted revisions to the Payment Services Act, which now recognizes cryptocurrencies as a means of payment. Furthermore, the Financial Instruments and Exchange Act was revised in 2020 to give security tokens the same status as stocks. The Japanese government is also exploring the possibility of allowing the domestic circulation of foreign stablecoins.Although it took several years for companies to enter the market after the regulatory framework was established, the security token market has since expanded, with more businesses now participating.Yoshikawa credited the Japanese crypto market’s resilience during the recent global crypto winter to clear regulatory guidelines. The recognition of cryptocurrencies as financial instruments enabled the regulation of not only spot trading but also derivatives trading. Japanese exchanges are also required to hold customer funds separately in trust firms, ensuring investor protection. This regulatory environment allowed companies and investors to confidently enter the crypto industry last year.FTX JapanFTX Japan’s return of customer assets and resumption of withdrawals in February showcased the effectiveness of these clear regulatory guidelines. Among subsidiaries of the now-defunct crypto exchange FTX, FTX Japan is the only one to have returned customer assets thus far, Yoshikawa emphasized.While crypto regulations in some areas, such as taxation, remain insufficient, both the Japanese government and entrepreneurs agree that the Web3 industry should develop in a way that benefits the nation’s economy.Ripple’s projects in JapanYoshikawa said that Ripple views the Japanese market as one of its key markets. In 2016, the company formed a joint venture, SBI Ripple Asia, with Japanese financial group SBI Holdings. Through this partnership, Ripple collaborated with several Japanese financial institutions to launch RippleNet and provide liquidity to the payment service.Japan’s largest remittance technology firm, SBI Remit, has adopted RippleNet and Ripple’s own remittance system On-Demand Liquidity (ODL) to facilitate real-time payments between Japan and Southeast Asian nations. Yoshikawa underlined that Ripple is committed to supporting Southeast Asian workers in Japan who need swift and cost-effective international payments.

In the immediate aftermath of the approval of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this week, a Hong Kong legislator has spoken out to encourage a proactive response within the Chinese autonomous territory, while asset managers appear to be responding accordingly.Photo by Simon Zhu on UnsplashCompetitive responseLawmaker Johnny Ng has called on the local government to swiftly embrace the recent ETF approval in the United States. In a post on X, Ng emphasized the need for Hong Kong to proactively lead the way in the cryptocurrency space, fostering innovation to secure a global position amidst intense competition. Ng highlighted the Securities and Futures Commission's (SFC) previous expression of readiness to accept applications for spot bitcoin ETFs. He urged Hong Kong to capitalize on the rapidly evolving virtual asset sector, implementing policies and products that position the city as a global hub for virtual assets. "This presents an opportunity to solidify Hong Kong’s position as a global hub for virtual assets," Ng stated, emphasizing the importance of seizing this moment in the market's development. In December, Hong Kong's regulatory bodies, the SFC and the Hong Kong Monetary Authority (HKMA), reviewed their existing policies, releasing circulars that outlined the requirements for spot crypto ETFs. Fund managers explore ETFsHashKey, a licensed crypto exchange in Hong Kong, confirmed its potential participation in spot crypto ETFs through engaging in crypto transactions associated with ETFs and providing crypto custody services. The company, which obtained a license from the SFC to offer retail crypto trading services in August, positions itself to play a pivotal role in the emerging market. Livio Weng, COO of the Hong Kong-based crypto exchange, revealed that approximately ten fund managers, backed by Chinese capital and others from Asia and Europe, are exploring the launch of spot crypto ETFs in Hong Kong. Weng, in an interview with Chinese financial news media Caixin, disclosed that seven or eight of these fund managers have already been in contact with the SFC, forming teams to design investment products. Highlighting the importance of education in the crypto space, Ng called on the Hong Kong government to prioritize public education. He stressed the need to increase awareness of virtual assets among the public while simultaneously reducing opportunities for illicit activities involving digital assets. Substantial impactIn an interview earlier this week, Yat Siu, the co-founder of Hong Kong-based crypto venture capital and game software firm Animoca Brands, expressed the view that the spot bitcoin ETF approval in the U.S. would have a more substantial impact on the overall development of crypto in Asia. As Hong Kong prepares to pave the way for spot crypto ETFs, the SFC and the HKMA have already reviewed existing policies, outlining the requirements for such investment products. The December circular from the SFC emphasized that transactions involving spot crypto ETFs should occur through licensed crypto platforms or authorized financial institutions, ensuring regulatory compliance in the growing crypto market. 

WEMIX PLAY Launches NFT Auction ServiceWEMIX PLAY, the global blockchain gaming platform operated by South Korean gaming publisher Wemade, has officially launched its non-fungible token (NFT) auction service dubbed “Drops”.Photo by Choong Deng Xiang on UnsplashNFT biddingDrops will serve as a platform for auctioning game NFTs and special NFTs, catering to the growing demand for unique digital collectibles. Auctions on Drops will follow an English auction format where the highest bidder wins, which is also used on NILE, a decentralized autonomous organization (DAO) and NFT platform based on the company’s decentralized blockchain network WEMIX3.0. Users can participate using WEMIX dollars (WEMIX$), the official stablecoin issued on the WEMIX3.0 mainnet.The first three games to launch NFTs on Drops are Melting Earth, Ballies, and Yield KingZ. Melting Earth collections are currently available for sale online, and the latter two will be released soon, according to WEMIX PLAY.Revolutionizing GameFiThe company’s introduction of Drops reflects the growing popularity and value of NFTs within the gaming world, providing gamers and collectors with an opportunity to acquire unique and rare in-game assets through an accessible and transparent auction platform, thus offering a more interactive gameplay experience while leading innovation in the gaming finance (GameFi) sector.