India’s CBDC reaches 1 million daily transactions milestone

Hong Kong Lawmaker Explores Digital Asset Links With MainlandIn a move aimed at bolstering its position as a rising global Web3 hub, Hong Kong Legislative Council member Johnny Ng has expressed his aspiration to foster greater collaboration between digital asset platforms in Hong Kong and a Shanghai-based exchange.Photo by Simon Zhu on UnsplashDigital asset exchange interconnectivityAs Hong Kong continues to position itself as a key player in the emerging Web3 landscape, Ng envisions a future where licensed virtual asset exchanges in Hong Kong could be interconnected with their counterparts in Shanghai.Ng’s remarks came during an interview with Chinese media outlet The Paper. Drawing a parallel with the established Shanghai-Hong Kong Stock Connect program that seamlessly connects the stock markets of both cities, Ng raised the question of whether a similar connection could be established for licensed digital asset exchanges. Ng’s idea hinges on the potential to bridge appropriate platforms in Shanghai with those licensed in Hong Kong for virtual asset trading.Interconnected talent poolThe lawmaker’s enthusiasm for interconnectivity also extends to the talent pool. He expressed his desire for more Web3 talent exchanges between Hong Kong and the mainland, recognizing Shanghai’s status as a financial hub boasting numerous exceptional financial enterprises.Hong Kong’s approach to the Web3 landscape stands in contrast to mainland China’s stringent cryptocurrency regulations. While China banned cryptocurrency transactions in 2021, Hong Kong has embraced crypto firms, even encouraging partnerships between these firms and local banks.This year, Hong Kong authorities unveiled a series of cryptocurrency-related policy statements, aimed at fortifying its stature as a global financial center. A significant step followed in December, when the Hong Kong Legislative Council passed an amendment introducing a comprehensive licensing framework for virtual asset service providers (VASPs).In a recent development underscoring Hong Kong’s pro-crypto stance, HashKey and OSL have become the pioneering recipients of licenses for retail trading under the new regulatory regime, which commenced on June 1.Differing policy approachesPeople following developments in crypto and Web3 in China and East Asia have been speculating if the strategic positive shift in Hong Kong towards developing as a regional hub relative to the sector is indicative of a softening in the approach of mainland China towards the industry. It appears that Hong Kong’s pursuit of crypto business has been sanctioned by Beijing.Commentators have been monitoring the emergence of further encouraging signals. In May, Chinese state television featured a segment that covered cryptocurrency and in particular Bitcoin. Binance CEO Changpeng Zhao (CZ) was sufficiently encouraged by the development to suggest that it was “a big deal,” although the clip was later removed from the broadcaster’s website.Ng’s proposal aligns with the broader narrative of Hong Kong’s ambitious push into the Web3 landscape, capitalizing on its favorable regulatory environment to attract crypto-related ventures. As discussions evolve around the potential interconnectivity between Hong Kong and Shanghai’s digital asset exchanges, the global cryptocurrency community watches with interest to see if there are any emerging signs that Beijing will reciprocate positively.

Kazakhstan setback for Coinbase as government blocks website accessIn alignment with the Law on Digital Assets legislation which was enacted in February, Kazakhstan’s Ministry of Culture and Information has officially confirmed that access to the Coinbase website has been blocked within the country.The development follows the enforcement of regulations prohibiting the issuance and trading of unsecured digital currencies, according to local news media.Photo by Kai Pilger on UnsplashAccusation of regulatory violationThe authorities in Kazakhstan initiated the blocking of local IP addresses from accessing Coinbase as early as September. The action was taken in response to a request from the Ministry of Digital Development. The Ministry of Digital Development accused Coinbase of violating the Law on Digital Assets, resulting in the restriction of access to the platform.The Law on Digital Assets, introduced earlier in 2023, stipulates that the issuance and circulation of unsecured digital assets are prohibited. The exception to this rule is within the Astana International Financial Center (AIFC), a designated economic zone in Kazakhstan. Permits to operate crypto trading platforms within the AIFC are issued by the Astana Financial Services Authority (AFSA).Several cryptocurrency exchanges have already received approval from the AFSA. Notable names among these approved exchanges include Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit and Xignal&MT.Reports of access issues to the Coinbase website initially emerged in September, with the local Telegram media outlet Finance.kz referring to it as the “great Kazakh investment firewall.” This firewall was not limited to Coinbase. It also affected access to other major international crypto exchanges such as Kraken.Stringent regulationKazakhstan’s approach to crypto regulation has been notably stringent, particularly concerning its significant mining sector, which ranks among the world’s largest. In October, eight leading cryptocurrency mining operators wrote an open letter to President Kassym-Jomart Tokayev, expressing concerns about the challenging conditions faced by the crypto-mining industry.Those entities included BCD Company, TT Tech Limited, Green Power Solution, Kinur Invest, KZ Systems, AI Solutions and VerCom. High energy prices for miners were cited as a significant issue, leading to what was described as a “very distressful situation” in the sector.Mining got off on the wrong footing in Kazakhstan. Following the banning of crypto mining activities in China in May 2021, there was a sudden influx of miners into Kazakhstan. As that development wasn’t planned for, it led to major stresses being placed on the country’s electricity grid. As a consequence, blackouts occurred.While this development in Kazakhstan is unwelcome news for Coinbase, the company has experienced more positive outcomes elsewhere. Last week it emerged that the U.S. crypto exchange had outperformed Q3 revenue estimates. That said, it also emerged that the exchange’s trading volumes had declined for the second consecutive quarter in a row.Kazakhstan’s move to block Coinbase access underlines the country’s determination to enforce its digital asset regulations, contributing to a growing trend of governments worldwide seeking to bring crypto-related activities under regulatory oversight.

Korean Crypto Wallet Joins Forces with Kick Scooter Sharing PlatformRotonda, a subsidiary of Korean cryptocurrency exchange Bithumb and the operator of the virtual asset wallet platform Burrito Wallet, announced today a collaboration with the Seoul-based kick scooter sharing service Xingxing, as reported by local media outlet Etoday.Photo by Ranurte on UnsplashToken reward promotionUnder this partnership, the two companies will launch a promotion that will run until July 31. The first 4,800 new users who click on the promotion banner on the Xingxing app, install the wallet app, and set up a crypto wallet will receive 10 WEBI tokens through airdrop. Furthermore, ten of these users will also be given an NFT that represents Xingxing’s monthly subscription “mini,” which is worth 18,900 KRW ($15). WEBI serves as the ecosystem token for the blockchain-based Web3 sharing economy service called Webility.Additionally, 200 monthly subscribers of Xingxing who install the Burrito Wallet app will have the opportunity to win 100 WEBI tokens and 100 Xingxing in-app points. The winners will be announced on the official websites of both companies.Bridging Web2 and Web3Having already forged partnerships with various blockchain projects, including Pala, Casper Labs, 1inch Network, and KLAYswap, Burrito Wallet will seize this opportunity to position itself as a digital wallet that bridges the gap between Web2 and Web3.A representative from Burrito Wallet expressed optimism that the partnership with Xingxing will provide more people with the opportunity to experience its distinguished Web3 services. The representative also emphasized the company’s commitment to strengthening partnerships with companies from various fields, with the goal of building a highly practical virtual asset ecosystem.