Blockchain Research

Japan stealthily has become among the world's most pro-crypto countries. Amidst the boom and gloom that have defined the crypto space, Tokyo has avoided irrational exuberance or draconian restrictions on the use and trade of virtual currency. Instead, it has quietly incorporated digital currency into its existing financial system, linking it to the wider push to boost cashless payments. In Asia, no nation has been more consistent in its crypto approach. The next logical step would be to create a central bank digital currency. Japanese officials, however, have yet to commit to a CBDC. Pressure is mounting though, especially as China pushes ahead with its sovereign digital currency.

Japan's biggest brokerages are moving to tap opportunities in the forthcoming security tokens market. From April 2020, Japan will permit fundraising through security token offerings, which have already been launched in the U.S., Singapore and Taiwan.

Australia Post is the first industry service provider to join the Australian government’s digital identity program and the second organization to be accredited under the Trusted Digital Identity Framework (TDIF) after the Australian Taxation Office. Alongside TDIF is the Australian government’s GovPass program. It allows individuals to verify their digital identity, which then can be used to access a range of government services. If success, the government's digital identity programs may be expanded to the financial services sector in the future.

The Japanese government is leading a global effort to develop an international cryptocurrency payment network similar to the SWIFT system used by banks, according to a recent Reuters report. Citing an anonymous source, the report said that the purpose of the crypto payment network would be to combat money laundering. No details have yet emerged about how the network would function, but it was reportedly approved by the Financial Action Task Force (FATF) in June.

The government of Indian Prime Minister Narendra Modi is not known as a friend of the crypto community. With his recent reelection, virtual currency's future in India, the world's second most populous country and its soon-to-be No. 3 consumer market after the U.S. and China, looks uncertain at best. At worst, India could flat out crypto and criminalize its possession and use.

The National Bank of Cambodia will become one of the first banks in the world to integrate blockchain technology into its national payments system in the second half of the year. The Cambodian government aims to use distributed ledger technology to strengthen banking system efficiency and boost financial inclusion in what is still one of Asean's poorest countries.

The last eighteen months have been a bumpy road for initial coin offerings (ICO’s). Last year we reported that China had banned them completely citing concerns over large scale fraud and regulatory bodies across the world have begun to take a tougher stance on the practice. Yet, despite these setbacks, $5 billion dollars was raised by ICOs in 2017, with that figure being surpassed in the first three months of 2018 alone. Nonetheless, in a response to the negativity around ICO’s, Security Token offering (STO) have emerged as an alternative form of blockchain based funding. We believe that the subtle differences in both offerings may be critical in beginning a new period of reconciliation and agreement between regulators and technology companies seeking finance under the blockchain.

The (Qingdao) Blockchain Research Company released a set of ratings for various blockchain projects on May 17th, 2018. The company is related to China Center for Information Industry Development (CCID), led by Ministry of Industry and Information Technology (MIIT), part of the national government, but it would be wrong to read that this is any sort of acceptance of crypto by the Chinese government.

On May 9th, a mini-app on WeChat called ‘Little Agreement’ showed up, providing an interface to create agreements on the Ethereum blockchain for Wechat Users. A few hours later, the mini-app was removed.

Blockchain technology has become one of the most popular topics in China today as it moves beyond conversations in the tech industry to normal individuals in their everyday lives. It is easy to catch a conversation about ideas of blockchain at a restaurant, on a bus, or in a club from people excited about the investment opportunities of blockchain projects, or even just blockchain ideas.

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