Our weekly roundup of reports from East Asia curates the trade’s most vital developments.
Hong Kong inching shut on a transparent crypto regulatory pathway
Just a few months after distinguished trade gamers lamented the shortage of registration pathways for cryptocurrency exchanges in Hong Kong, some respite might lastly be on the horizon. On Apr. 27, Julia Leung, chief government officer of the Securities and Futures Commission (SFC) of Hong Kong, revealed that regulation of digital asset buying and selling platforms (VATP) stays one of many fee’s key priorities, stating:
“The SFC has obtained greater than 150 responses to the session on the proposed regulatory necessities for licensed VATP operators and can problem the conclusions and ultimate tips in May earlier than the brand new regime takes impact on Jun. 1 2023.”
Leung additionally mentioned that Web3 and blockchain know-how will convey “monumental advantages to the monetary trade when it comes to effectivity” and reiterated the fee’s assist for “underlying distributed ledger know-how and accountable innovation in relation.” Nevertheless, the SFC additionally issued the next warning:
“The regulator takes agency and immediate enforcement motion, in opposition to market manipulation actions, social media ramp and dump schemes, abusive conduct in listings, middleman misconduct and virtual-asset-related misconduct. The amended Anti-Money Laundering Ordinance (AMLO) will give the SFC new energy to fight these scams.”
In February, the SFC stirred up a crypto frenzy when it launched a session on its proposed regulatory necessities for digital asset buying and selling platforms. On Apr. 20, a report printed by the Hong Kong Stock Exchange day by day buying and selling quantity of all Hong Kong crypto ETFs averaged about $1.19 million between December 2022 and early February.
Alibaba takes an curiosity in multichain
On Apr. 26, Ant Financial, an affiliate of Chinese e-commerce conglomerate Alibaba, introduced throughout its annual Digital Technologies Developer Conference that it will formally open supply its cross-chain protocol AntChain Bridge to builders worldwide.
The AntChain Bridge was designed primarily based on the Institute of Electrical and Electronics Engineers (IEEE) Standard for Blockchain Interoperability, one of many first standardized communications protocols on this class. Yan Ying, technical director of AntChain, mentioned that cross-chain know-how “is important to unlocking the total potential of Web3” and would permit for “large-scale transferring of digital belongings.”
During a dwell demonstration, AntChain Bridge builders a number of commemorative NFTs to totally different blockchains. Developers can entry its cross-chain programs or enterprise sensible contracts by downloading the cross-chain plug-in on the AntChain Openlab Github repository web page. Two months prior, the National Basketball Association’s (NBA) Chinese subsidiary introduced that it will develop its partnership with Ant Financial to mint extra NFTs on its native AntChain. The blockchain was launched in 2017 with a deal with fintech.
Yan Ying talking at AntGroup’s annual Web 3 convention. (AntGroup)
Huawei and the GPT craze
On Apr. 27, native information outlet IThome reported that Chinese telecommunications conglomerate Huawei has filed for a nationwide trademark utility labeled “Huawei NetGPT” beneath the classification “scientific devices.” Earlier this month, Huawei builders shared additional perception into its different ChatGPT clone, “PanguGPT,” claiming that:
“It has entered the sector of clever doc search, clever enterprise useful resource planning, and has applied situations comparable to enterprise monetary anomaly detection, large-scale fashions in Arabic, and many others.”
Similar to Huawei, Chinese tech large Baidu unveiled its reply to ChatGPT, Ernie Bot, on Mar. 16. One month later, Alibaba additionally started testing its ChatGPT rival dubbed “Tongyi Qianwen.” Around the identical day, American enterprise magnate Elon Musk additionally revealed that he would create his personal ChatGPT equal, TruthGPT, for seemingly political causes. Chat-based massive language fashions can have main functions in blockchain, comparable to auditing sensible contract code or guiding its viewers on crypto buying and selling.
Chinese metropolis public servants to obtain digital yuan salaries
Earlier this week, authorities officers from the City of Changshu (inhabitants 1.56 million) introduced that town’s public servants can be paid in digital yuan (e-CNY) efficient beginning subsequent month.
The transfer follows a profitable pilot check starting final October that noticed choose public officers obtain public transport reimbursements via the digital yuan. While technique of spending the e-CNY straight are at present considerably restricted on a nationwide degree, the City of Changshu has begun permitting e-CNY funds for utility payments, mobile phone payments, cable TV, and public transportation.
Customer utilizing e-CNY to pay at a restaurant (Shenzhen People’s Government)
WeChat, too, expands digital yuan adoption
On Apr. 26, Chinese social media app WeChat, which boasts over 1 billion month-to-month lively customers, expanded digital yuan adoption to its video content material creation platform and “Mini Programs” platform for distributors.
According to native stories, companies payable on WeChat through e-CNY now embody ride-sharing, on-line buying, or ordering takeaway from eating places. To use the function, customers should first move via know-your-customer checks. Despite its elevated presence, e-CNY accounted for simply 0.13% of the overall Chinese Yuan in circulation at first of the yr.
A WeChat digital yuan funds web page. (WeChat)
Zhiyuan solar is a journalist at Cointelegraph specializing in technology-related information. He has a number of years of expertise writing for main monetary media shops comparable to The Motley Fool, Nasdaq.com and Seeking Alpha.