Welcome to the weekly Asia Crypto Insights that touch on the latest news on digital assets developments and policy updates from across the Asia Pacific region. Click here for the weekly 2-min podcast.
Here are key events from last week:
- Bhutan introduces National Digital Identity on blockchain
- South Korea establishes new regulation and SK Telecom launches crypto wallet
- Australia Treasury released proposal to regulate digital asset platforms
Bhutan introduces National Digital Identity on blockchain
Bhutan, long touted as one of the happiest nations on Earth, is set to launch its National Digital Identity (NDI) system, a blockchain-based identity platform. The NDI aims to provide Bhutanese citizens with a unified digital identity, allowing them to access various government services and conduct transactions through a single mobile application. The app, available on iOS and Android, will initially be linked to the Bank of Bhutan, enabling users to make transactions without the need for additional apps. The system incorporates biometric data for identity verification and emphasizes data privacy, and guarantees users exclusive controls over their data and the sharing of their personal information.
The move is viewed as Bhutan’s significant step towards its digital nation aspiration, promising wider inclusivity and easier global market access. The government plans to explore offline features for rural communities and engage the private sector for innovation.
South Korea establishes new regulation and SK Telecom launches crypto wallet
The Financial Supervisory Service (FSS) is stepping up their efforts to enhance digital asset legislation by preparing regulations to supplement the Virtual Asset Users Protection Act that was passed earlier in 2023. The new regulations are expected to be ready by January before the law takes effect, with a stated aim to establish standards for listing procedures, internal controls, and the issuance and circulation volume of virtual assets. The National Assembly has also commissioned an in-depth research service for the new rules. This will lead to the establishment of a “Virtual Asset Market Supervision and Inspection System”.
The FSS acknowledges that the current legislation lacks regulatory detail and is working to give the agency more authority in addressing violations and manipulation in the crypto market. South Korean law enforcement is also establishing a joint virtual-asset crime investigation unit.
While the regulatory authorities are picking up steam in the country, Korean telecommunications giant SK Telecom is dialing into the crypto space by launching a wallet in partnership with Team Blackbird’s CryptoQuant. Users of the wallet will gain access to a blockchain-based application on their phones that lets them store tokens and access CryptoQuant’s on-chain analysis tools. The collaboration aims to provide users with enhanced security and insights into the cryptocurrency market, and the wallet will offer real-time monitoring of blockchain transactions, allowing users to make informed investment decisions.
SK Telecom’s entry into the crypto wallet market signals the growing mainstream adoption of cryptocurrencies in South Korea. The partnership with CryptoQuant leverages their expertise in blockchain data analysis, positioning the wallet as a reliable and data-driven solution for crypto enthusiasts.
Australia Treasury released proposal to regulate digital asset platforms
The Treasury has released its proposal to regulate digital asset platforms through an extension of the existing financial services regime. The move aims to protect users and reduce the risks associated with scams and exchange collapses. The regulations will apply to crypto exchanges holding more than $5 million AUD in aggregate or more than $1500 for any individual. They will be required to obtain an Australian Financial Services License (AFSL) and adhere to obligations such as providing services honestly and fairly, managing conflicts of interest, making disclosures, and meeting solvency and cash reserve requirements.
The government plans to consult on the proposed legislation until December 1 and expects exchanges to transition to the new regime within 12 months. The regulatory model aims to strike a balance between consumer protection and promoting innovation in the digital asset sector, especially after the FTX collapse that impacted 30,000 Australians.
That’s all for the week ending October 20th. Stay tuned for next week’s Asia Crypto Insights!
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