Animoca Brands Co-Founder: U.S. ETF approval positive for Asia

The Central Asian republic of Kazakhstan is planning to establish a pilot project that will enable the use of crypto as a means of exchange for goods and services within a specific zone. That’s according to a statement published on Akorda.kz, the official website of the President of Kazakhstan. The statement incorporates the text of a keynote speech delivered by President Kassym-Jomart Tokayev at the Astana International Forum. Tokayev stated: “We are planning to create a pioneering pilot zone called CryptoCity where cryptocurrencies might be used for purchasing goods, services, and even beyond.”Photo by Engin Akyurt on PexelsWorking towards digital transformationThe initiative forms part of Kazakhstan’s efforts to make progress in terms of digital transformation, as well as an aspiration to become an IT hub within the Eurasia region.  For the purposes of the pilot program, the use of cryptocurrencies for the payment of goods and services has been authorized by the government within a pre-defined sandbox environment. Alatau City, an urban development located north of the Kazakhstani city of Almaty, has been chosen for the pilot scheme. Alatau has been established as a special economic zone and planned to become a hub for new technology and knowledge, alongside global tourism. It hosts the Innovation Technology Park together with the Kazakhstan National Nuclear Center, Institute of Nuclear Physics and the Physics & Technology Institute.It’s envisaged that the existing technology and knowledge base within Alatau will support its expansion into the area of crypto payments and blockchain development. In addition to crypto payments, other blockchain-based technologies related to taxation systems, investment and decentralized identity systems will be nurtured and encouraged within the Alatau special economic zone. Potential Eurasian crypto hubIn a recent opinion piece published by the Russian-language government-backed newspaper Kazakhstanskaya Pravda, Kanysh Tuleushin, Kazakhstan’s vice minister of digital development, suggested that the Central Asian republic has the potential to position itself as the region’s leading crypto hub.  Tuleushin also suggested that crypto mining operators could help to modernize the country’s energy sector, playing a role in stabilizing the country’s power grid, while making use of surplus electricity. Kazakhstan had proven to be a popular destination for Bitcoin miners in the past. However, the sudden influx of miners following a ban on the activity in China in 2021 was unplanned for.  The surge in electricity demand put the country’s electricity grid under pressure, leading to blackouts in some cases. In 2023 President Tokayev signed legislation into law that limited the energy use of domestic crypto miners. Despite that negative experience, it appears that Tuleushin has seen the benefits that the activity can bring when regulated and planned for. Back in March, it emerged that lawmakers in Kazakhstan had proposed the creation of a crypto bank. One obstacle to the creation of the bank is a lack of a crypto regulatory framework. According to a report published earlier this month, the National Bank of Kazakhstan is now in the process of preparing a regulatory framework for digital assets.

B2Prime Group, a leading liquidity provider, has achieved a significant milestone by securing "Initial Approval" from the Dubai Virtual Assets Regulatory Authority (VARA) for its B2B Prime Digital MENA division. This development marks an important step for the company in its pursuit of a comprehensive Virtual Asset Service Provider (VASP) license. B2Prime is a Cyprus-based financial institution registered and supervised by CySEC, operating under the umbrella of broker technology provider B2Broker, with Artur Azizov and Evgenia Mikulyak as the founders.Photo by Roman Logov on UnsplashPre-operating conditionsThe initial approval granted by VARA covers licenses for "Virtual Asset Exchange Services," "Virtual Asset Broker Dealer Services" and "Virtual Asset Transfer and Settlement Services." The path to complete licensing involves B2Prime Digital MENA fulfilling pre-operating conditions and obtaining operational approval before providing its services in Dubai. Expressing gratitude, B2Prime's founders acknowledged the rigorous regulatory framework set by VARA, emphasizing the company's commitment to leading in the evolving virtual asset landscape. Arthur Azizov, Co-Founder of B2B Prime Digital MENA, expressed confidence in the company's ecosystem, ensuring a safe and efficient gateway to virtual assets for users. Adriana Paredes Herrera, CEO of B2B Prime Digital MENA, celebrated the eagerly awaited Initial Approval for all three licenses, particularly the Transfer and Settlement License, inspiring the team to channel their best efforts towards securing the Virtual Asset Service Provider license. Licensed in Cyprus and MauritiusThe company aims to offer a robust, efficient and secure gateway to virtual assets, ensuring a transparent and compliant environment for its clients. In 2021, the firm acquired licensing in Cyprus for activities related to forex and contracts for differences (CFDs). Outside of Europe, the company extends its services internationally through B2Prime Mauritius. Established in March 2022, VARA serves as the regulatory body for virtual assets in Dubai, with a mission to safeguard investors and establish international standards for the industry, fostering a secure and transparent environment for virtual asset transactions. B2Broker, B2Prime’s parent company based in Moscow, boasts 11 offices across Europe, Asia and the Middle East. Holding seven licenses, including FCA and AEMI, the firm serves clients in over 50 countries. It provides forex liquidity distribution and various services to the forex, crypto and securities sectors. The group has built a portfolio of global financial services clients, expanding corporate representation and exposure worldwide. Last year, B2Broker reduced the margin requirements for the institutional and retail broker clients on ten of its crypto CFDs. Multi-asset liquidity providers like B2Prime/B2Broker play an important role in the market. Both centralized and decentralized crypto exchanges utilize these services to enhance liquidity pools and enable efficient trade execution. Through their services, order execution is completed with the minimum amount of slippage. B2Broker has been offering crypto-related services since 2017, offering over 100 crypto CFDs. The company has also developed B2BinPay, an all-in-one crypto payment platform that enables businesses to send, receive and convert cryptocurrency. Another revenue stream for the business is provided through B2Trader, a matching engine for crypto exchanges.

Korea’s FSC Embarks on Developing Regulatory Framework for VASPsThe South Korean Financial Services Commission (FSC) has taken a step towards the development of a virtual asset regulation system by seeking external parties to undertake a research project in this area, according to local news agency News1.Photo by Joshua Miranda on PexelsSecond phaseEarlier this month, the National Assembly passed the Virtual Asset User Protection Bill, aimed at protecting investors and preventing unfair trading practices. This legislative accomplishment, scheduled to go effective in July next year, is referred to as the “first phase” of virtual asset regulations. Building upon this foundation, the FSC has now shifted its focus to the “second phase,” which involves the regulation of virtual asset service providers (VASPs).Regulating VASP operationsOne primary concern regarding VASPs is the potential for conflicts of interest arising from their involvement in the issuance and distribution of virtual assets. In response, the FSC is determined to design a regulatory framework that covers a wide range of virtual assets, including stablecoins, security tokens, and utility tokens.In addition to this, the FSC intends to establish a system that governs advisory and disclosure businesses, which will play a crucial role in disseminating information about asset prices and disclosures.Moreover, the regulatory system will include guidelines for holding parties accountable in case of incidents and for overseeing the operations of VASPs to maintain a safe and fair market environment.The FSC acknowledges the significance of aligning policies with international standards. To achieve this, the commission will conduct an examination of virtual asset regulatory approaches taken by different countries and international organizations. Through this study, the FSC aims to integrate global best practices and approaches into Korea’s own regulatory framework for virtual assets.Once the study is complete, the FSC has to report the result to the National Policy Committee of the National Assembly by July 2024 before the Virtual Asset User Protection Bill goes into effect.