Research Summary
The report covers the top 10 crypto news in Asia for the week of Dec 11 to Dec 17. It includes updates on Hong Kong’s digital green bond issuances, South Korea’s virtual asset user protection act, Russia’s plans to export cryptocurrency mining products, and other significant developments in the Asian crypto market.
Key Takeaways
Hong Kong’s Digital Green Bond Issuances
- Exploring Digital Green Bonds: The Hong Kong government has enlisted five banks, including HSBC Holdings Limited and Bank of China (Hong Kong), to explore the issuance of digital green bonds. These bonds will be recorded on a distributed ledger technology platform and may be denominated in various currencies.
South Korea’s Virtual Asset User Protection Act
- Regulating Virtual Assets: The Financial Services Commission of South Korea has issued a notice regarding the legislation of the “Regulations for the Implementation of the Virtual Asset User Protection Act”. The regulations include mandates for storing 80% of users’ virtual assets in cold wallets and establishing standards for mutual aid or reserve funds to address liabilities arising from hacking and other incidents.
Russia’s Cryptocurrency Mining Export Plans
- Exporting Cryptocurrency Mining Products: The Russian Ministry of Finance plans to export cryptocurrencies produced through crypto mining activities, similar to natural gas exports. A regulatory bill on cryptocurrency mining could come into effect in 2024.
Blockchain Technology for On-Chain Custody
- On-Chain Custody and Confirmation of Data: Yao Qian, Director of the China Securities Regulatory Commission (CSRC) Technology Supervision Bureau, discussed the potential use of blockchain technology for on-chain custody and confirmation of data in an article published in “China Finance” magazine.
Binance’s Response to SEC Lawsuit
- Confidence in SEC Case: Binance CEO Richard expressed confidence in the SEC case and is confident in maintaining Binance’s position. He Yi, co-founder of Binance, mentioned that the criminal prosecution (settlement) by the Department of Justice is the most important, and the SEC’s lawsuit may not be as important as the settlement with the Department of Justice.
Actionable Insights
- Monitor Developments in Digital Green Bonds: Financial institutions and investors should keep an eye on the developments in Hong Kong’s digital green bond issuances, as it could set a precedent for other markets.
- Understand the Implications of South Korea’s Virtual Asset Regulations: Crypto exchanges and investors should understand the implications of South Korea’s new regulations for the virtual asset industry, as it could impact their operations and investment strategies.
- Assess the Potential of Russia’s Cryptocurrency Mining Export Plans: Crypto miners and investors should assess the potential of Russia’s plans to export cryptocurrency mining products, as it could influence the global crypto mining landscape.
- Explore the Use of Blockchain for On-Chain Custody: Companies dealing with large-scale data should explore the use of blockchain technology for on-chain custody and confirmation of data, as suggested by Yao Qian.
- Keep an Eye on Binance’s Legal Developments: Crypto investors and traders should keep an eye on the legal developments involving Binance, as it could impact the platform’s operations and the broader crypto market.
