Blockchain Research and Insight - Kapronasia

The recent strategic partnership between Ant International and Deutsche Bank represents a significant turning point in the evolution of global payments, particularly across Europe and Asia. This collaboration aims to deliver integrated, cross-border payment solutions to merchants and businesses of all sizes, harnessing the strengths of both institutions: Deutsche Bank’s global banking network and Ant International’s advanced fintech capabilities, including proprietary tokenization and artificial intelligence-driven foreign exchange (FX) technology.

The recent graduation of Coins.ph’s PHPC stablecoin from the Bangko Sentral ng Pilipinas (BSP) regulatory sandbox marks a transformative milestone for the Philippine digital finance sector. As the first fully regulated peso-backed stablecoin to emerge from the BSP’s experimental framework, PHPC is poised to reshape the way Filipinos interact with money, both domestically and internationally. PHPC is a fiat-collateralized stablecoin, pegged 1:1 to the Philippine peso and fully backed by cash and cash equivalents held in local banks. Coins.ph, a BSP-licensed Virtual Asset Service Provider and Electronic Money Issuer, is responsible for its issuance and ongoing compliance.

The Securities and Exchange Commission (SEC) of the Philippines has ushered in a new era for the country’s digital asset landscape with the promulgation of comprehensive regulations for crypto-asset service providers (CASPs). These sweeping rules, encapsulated in Memorandum Circular Nos. 4 and 5, are designed to formalize the operations of crypto businesses, enhance investor protection, and ensure market integrity in the face of rapid technological innovation and growing public interest in cryptocurrencies.

Artemis’ recent report, “Stablecoin Payments from the Ground Up,” produced in collaboration with Castle Island Ventures and Dragonfly, provides a detailed snapshot of how stablecoins are being used in real-world payment scenarios across various regions and economic contexts. This study departs from more abstract or speculative discussions of digital assets, focusing instead on how stablecoins are practically implemented today by businesses and individuals.

The Dubai Land Department (DLD) has launched the Middle East’s first government-backed real estate tokenization platform, marking a significant milestone in the digitization of real-world assets. This initiative, developed in partnership with fintech firm Prypco and infrastructure provider Ctrl Alt, is poised to revolutionize property investment in Dubai and set a precedent for global real estate markets.  

The global financial landscape is witnessing a significant transformation with the rise of stablecoins, and Asia is emerging as a crucial arena for this evolution. While the region's approach to these digital currencies is notably diverse, a clear momentum towards adoption and regulation is undeniable. Countries across Asia are exploring stablecoins to enhance monetary sovereignty, boost financial inclusion, modernize payment systems, and reduce dependency on traditional fiat currencies like the U.S. dollar.

In recent years, the global financial landscape has undergone significant transformation with the advent of blockchain technology and digital assets. Recognizing this shift, Malaysia’s Securities Commission (SC) recently initiated a public consultation on a proposed framework for tokenized capital market products. This initiative marks a pivotal development in the country’s efforts to modernize its capital markets and embrace financial innovation while maintaining regulatory integrity and investor protection. The consultation's impact is multifaceted, spanning regulatory clarity, market innovation, investor confidence, and regional competitiveness.

In April 2025, a significant meeting between Vietnam’s Minister of Finance, H.E. Nguyen Van Thang, and Ben Zhou, co-founder and CEO of Bybit, marked a pivotal step in Vietnam's journey toward establishing a comprehensive regulatory framework for cryptocurrencies. This collaboration underscores the nation's commitment to integrating digital assets into its financial ecosystem while ensuring investor protection and financial stability.

For millions worldwide, sending money across borders is not a matter of convenience, but a vital lifeline. International remittances are a cornerstone of many economies, including the Philippines, which reportedly saw US$38 billion in such transfers in 2024. However, this crucial financial flow has long been plagued by inefficiencies. High costs, slow processing times, and a lack of transparency have been persistent pain points for those relying on traditional remittance channels. Enter Coins.ph, a company aiming to rewrite this narrative by introducing blockchain-based remittance services, a move that promises to enhance financial inclusion but also brings its own set of considerations.

In a bid to foster responsible innovation in the financial services sector, especially in the field of crypto-assets, the Securities and Exchange Commission (SEC) of the Philippines announced it has opened applications for its SEC Strategic Sandbox (StratBox). With a focus on Crypto-Asset Service Providers (CASPs), the StratBox will provide a controlled environment for CASPs to test and pilot their products, services and business models, while the SEC can benefit from gaining critical insights and data on the risks and opportunities related to crypto-assets. Despite the focus on crypto-asset services, the SEC will also consider applications from entities in other financial sectors. The StratBox initiative has a broader mandate of reshaping securities trading in the Philippines, potentially leading to the introduction of tokenized stocks and bonds.

Tokenized assets, smart contracts, decentralized exchanges (DEXs), stablecoins and new forms of central bank money are examples of the wave of disruption, known as decentralized finance or DeFi, that is gradually but surely altering the financial landscape. Despite its benefits of greater transparency, security and financial inclusion, DeFi poses significant challenges such as market inefficiencies, new forms of information asymmetries and the risk of “cryptoization” (a word coined by the IMF) in emerging markets.

The cryptocurrency market has long operated in a grey area of regulatory oversight, with some jurisdictions embracing digital assets while others impose stringent controls. Thailand, a country known for its proactive stance on financial regulations, recently took a decisive step in reinforcing its digital asset framework. The Thai Securities and Exchange Commission (SEC) has filed a criminal complaint against OKX, a major global cryptocurrency exchange, for operating without a license. The complaint also includes charges against nine individuals accused of promoting the exchange’s unlicensed services. This move marks yet another chapter in Thailand’s ongoing efforts to regulate digital assets and ensure investor protection.

The cryptocurrency market in Southeast Asia’s largest economy grew briskly in 2024. The value of cryptocurrency transactions in Indonesia reached Rp 475.1 trillion (US$29.6 billion) by October 2024, up 352% year-on-year, according to the country’s Financial Services Authority (OJK). Further, by the same month, there were 21.6 million crypto investors in Indonesia.

With the decision by Deutsche Bank (DB) to invest in Partior, the ambitious blockchain firm raised a total of US$80 million in its Series B funding round. The German bank joined Partior's Series B funding round as a strategic investor. Its move should be complimentary to the recent launch of dbX, DB’s next-generation correspondent banking ecosystem for financial institutional clients.

We observed with great interest as Cambodia launched a crackdown on cryptocurrency beginning on December 3. The Telecommunication Regulator of Cambodia (TRC) moved to block access to 16 cryptocurrency exchanges, among them Binance, Coinbase, and OKX. The TRC said that it implemented the restrictions because the platforms are not properly licensed by the Securities and Exchange Regulator of Cambodia (SERC).

North Korea has become the most tenacious state actor when it comes to theft of digital assets. Given its proximity to the Hermit Kingdom, a shared language and a deep understanding of how its criminal pursuits are carried out, South Korea plays a leading role in the investigation of Pyongyang’s crypto crime. In late November, South Korean police said that their investigation confirmed that hackers linked to North Korea's military intelligence agency were responsible for a large 2019 Ethereum heist.

In a growing number of countries, stablecoins appear here to stay. DeFiLlama data show that the total market capitalization for stablecoins has risen 46% this year to a new high of roughly US$190 billion, cementing a remarkable comeback from the nadir the cryptocurrencies experienced following the implosion of TerraUSD in 2022. Yet two of the world’s largest economies and its two largest by population remain wary of stablecoins. How China and India ultimately choose to approach stablecoins could have significant implications for their broader adoption.

We recently wrote about the implications of the Bank of International Settlements (BIS) possibly exiting the mBridge cross-border CBDC project it has overseen, but we did not expect the Switzerland-based entity would make its decision so soon. On October 31, BIS announced its departure from mBridge, and on Nov. 11 published an update on its official website stating that the initiative had reached the minimum viable product (MVP) stage. There was no explanation given for why BIS exited mBridge and no details provided about next steps for the project.

Given that U.S. President-elect Donald Trump has recently taken a pro-cryptocurrency stance, it was only a matter of time before someone prominent in the digital assets community found a way to spin it as positively affecting the China crypto market. Never mind that Trump is known for his mercurial nature and has only spoken about crypto in the most general terms. In this case, it is HashKey Group chairman and CEO Xiao Feng who is espousing such a viewpoint.

What happened to the digital rupee? With each passing week, it seems that India’s CBDC project is fading further into the background of the subcontinent’s financial ecosystem. In contrast to China, which is unswervingly pressing forward with the digital renminbi – irrespective of actual market demand, it should be noted – India’s financial regulators seem uncertain if they really want a digital fiat currency.

South Korea has long had an enthusiastic cryptocurrency investing community. Over the past 18 months, that community has grown briskly. Data compiled by South Korean regulators show that the number of crypto investors in the country increased 21% year-on-year in the first half of 2024 to 7.78 million, which is about 15% of the South Korea population of 52 million. During the same period, the average daily trading volume of cryptocurrencies jumped 67% to 6 trillion won while the market value of cryptocurrencies in South Korea rose 27% to 55.3 trillion won.

Ever since the China-led central bank digital currency project mBridge was launched several years ago, there have been whispers that its ultimate goal was to develop an alternative payments rail that could circumvent the U.S.-dominated international financial system. That is because mBridge aims to establish direct links between the central banks of its participants, allowing money to be sent outside of the existing correspondent banking system. It was primarily the involvement of the Bank of International Settlements (BIS) in mBridge that gave the project an appearance of neutrality. Yet with the news that BIS is considering shutting down the project, it seems clear the CBDC cross-border payments initiative cannot be separated from geopolitical tensions.

Hong Kong’s financial regulators and at least some in the industry seem to believe that the city’s future as a financial hub depends on its embrace of cryptocurrency. For the past two years, Hong Kong has been relentlessly pitching itself as a digital assets hub in an effort to regain ground lost to Singapore and mainland China. The city-state has emerged as a larger and more important fintech hub, while mainland Chinese stock exchanges are attracting companies to list that might have once chosen to go public in Hong Kong. While it can be argued that Hong Kong would be better served by focusing less on an industry that remains problematic in many respects, its big bet on crypto might end up paying off big.

The Indian government has long eyed cryptocurrencies warily, viewing them largely as contributing to money-laundering risk and challenging the central bank’s monetary authority. Though India has stopped short of outright banning digital assets – or a de facto ban like what China has – it has nonetheless made investing in them smoothly a challenging process – especially the 30% tax on gains from cryptocurrency. Nevertheless, crypto remains popular among with Indians, with a recent Chainalysis study showing that India leads the world in crypto adoption.

In the alternate reality inhabited by crypto bros, most jurisdictions are always on the cusp of a full-throated embrace of digital assets. Case in point: in late August, Tron founder Justin Sun wrote on X, “China unbans crypto. What’s the best meme for this?” Regardless of Sun’s true intentions in this post, Beijing is not only “unbanning” crypto, it is tightening oversight of the industry.

Singapore is continuing to take a measured approach to digital assets as seen by the growing prevalence of stablecoin payments in the city-state. In the second quarter, stablecoin payments reached a new high of US$1 billion in Singapore, according to data from blockchain research firm Chainalysis. With the announcement of stablecoin regulations in August 2023, Singapore  bet that these “safer” cryptocurrencies have staying power and will play an increasingly important role in the future of financial services.

It was inevitable that Hong Kong’s much-hyped cryptocurrency initiative would run into some serious challenges. We are not surprised to learn that the city’s regulators are not satisfied with the compliance level at some “deemed to be licensed” exchanges operating in the city. While demand for digital assets remains strong in many markets, and Hong Kong has a strong foundation as a financial services hub on which it can build, the crypto sector itself remains immature and prone to malfeasance while there is no global consensus on how to manage digital asset flows.

2024 might be remembered as a turning point for central bank digital currencies (CBDCs) – the year when interest in them began to significantly wane. In the case of India, while the government seems determined to push forward with the digital rupee, retail users are more circumspect. The Reserve Bank of India (RBI) highlights its estimation of 5 million digital rupee users. If we stop to consider that India has more than 1.4 billion people, then less than ½ of 1% of the population is not a particularly strong adoption rate – especially for something that has such strong government backing.

Cryptocurrency crime committed by the Democratic People’s Republic of Korea (DPRK) has become so pervasive that it requires a stronger international effort to bring under control. With that in mind, the U.S. Department of State and the Ministry of Foreign Affairs of the Republic of Korea (ROK) co-hosted an event about the issue in New York City on August 27.

Every few months, it seems that rumors start circulating in the cryptocurrency community about a possible liberalization of China’s strict digital asset controls. The rumors rarely have any basis in reality, and this time is no different. A number of cryptocurrency news sites have published stories over the past few weeks suggesting change could be afoot, citing a legal victory for Tron blockchain founder Justin Sun in Chinese court.

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