Hong Kong regulators FOMO amid SEC Bitcoin Spot ETF approval

Hong Kong Bitcoin ETF FOMO, Thailand approves $14B airdrop Asia Express’ is the condensed version.

Hong Kong Legislative Council Member Johnny Ng is feeling some serious FOMO (Fear Of Missing Out) when it comes to Bitcoin Spot ETFs. He wants Hong Kong to speed up the approval process for local Bitcoin Spot ETFs following the SEC’s recent approval in the U.S. In a tweet, Ng expressed his hopes for Hong Kong to become a global center for virtual assets:

“I hope that with the rapid development and high competition of virtual assets, Hong Kong can seize a seat in the world as soon as possible. This will be the first opportunity to implement relevant policies and products in Asia and consolidate Hong Kong’s opportunity to become a global center for virtual assets.”

Ng also emphasized the need for education on virtual assets to increase awareness and prevent scams. With the collapse of unlicensed crypto exchanges JPEX and Hounax last year, Hong Kong experienced some major financial scams. It’s clear that Ng wants to avoid a repeat of those incidents.

According to Livio Weng, COO of HashKey Group, Hong Kong is already gearing up for the approval of Bitcoin Spot ETFs. He revealed that 10 financial services firms are currently preparing applications for a Bitcoin Spot ETF listing. The Securities & Futures Commission gave the green light for such applications in December 2023. It seems like Bitcoin Futures ETFs are already making waves in Hong Kong, with one issued by Samsung already available on local exchanges.

• UBS Allows Some Clients to Trade Bitcoin ETFs Despite Specific Conditions 🏦💰📈
• 🚀 Small-Cap Crypto Gainers vs. Blue-Chip Markets: Where’s the Action?
• Vanguard Rejects Bitcoin ETFs: What Does This Mean for Investors?

Q&A: What does the approval of Bitcoin Spot ETFs mean for Hong Kong?

Q: What is a Bitcoin Spot ETF? A: A Bitcoin Spot ETF is an exchange-traded fund that tracks the spot price of Bitcoin. It allows investors to gain exposure to Bitcoin’s price movements without actually owning the cryptocurrency.

Q: Why is the approval of Bitcoin Spot ETFs significant for Hong Kong? A: The approval of Bitcoin Spot ETFs in Hong Kong means that the city is positioning itself as a major player in the world of virtual assets. This move allows Hong Kong to attract more investors and establish itself as a global center for virtual assets.

Q: How will the approval of Bitcoin Spot ETFs affect the crypto market in Hong Kong? A: The approval of Bitcoin Spot ETFs will likely bring more liquidity and stability to the crypto market in Hong Kong. It will provide a regulated investment vehicle for investors who want exposure to Bitcoin without the risks associated with owning the cryptocurrency directly.

Q: Is there a risk of scams with Bitcoin Spot ETFs? A: While the approval of Bitcoin Spot ETFs brings legitimacy to the market, it’s still important for investors to be cautious and do their due diligence. Scammers may try to take advantage of the hype surrounding Bitcoin Spot ETFs, so it’s crucial to only invest through reputable and regulated platforms.

Wemix’s rollercoaster start to 2024

South Korean gaming giant Wemix has had a wild ride at the beginning of 2024. The developers of the Wemix blockchain recently announced that they would halt block minting rewards by the first quarter of this year. Instead of issuing new tokens, they will incentivize ecosystem protocols using the tokens already held by the foundation.

This move will transform the Wemix network into a deflationary blockchain, as the total supply of tokens will either stay fixed or decrease. The developers claim that this new incentive model can be sustained for around 20 years.

Wemix is the parent company of Wemade, the creator of the popular Legend of Mir series. According to Wemade, the release of Mir 4 in 2021 made it the most successful blockchain game at the time. However, Wemix faced a significant setback in November 2022 when the value of Wemix tokens dropped by 70% in a single day due to delistings on Korean exchanges. The company was also accused of providing false information in response to an investment warning.

In an unrelated development, Wemade recently disclosed that it owes 53.7 billion won ($41 million) in taxes to South Korean authorities related to the issuance of Wemix tokens from 2019 to 2022. The tax payment is due by February 29.

Q&A: What is a deflationary blockchain?

Q: What does it mean for a blockchain to be deflationary? A: A deflationary blockchain is one in which the total supply of tokens or coins either remains fixed or decreases over time. This can create scarcity and potentially increase the value of the tokens or coins.

Q: Why did Wemix halt block minting rewards? A: Wemix decided to halt block minting rewards to transform its blockchain into a deflationary one. By incentivizing ecosystem protocols using the tokens already held by the foundation, Wemix aims to create a sustainable incentive model that can last for many years.

Q: What caused the drop in the value of Wemix tokens? A: The value of Wemix tokens dropped significantly due to delistings on Korean exchanges and accusations of providing false information in response to an investment warning. These events shook investor confidence in the project and led to a rapid decrease in token value.

Q: How will the tax payment impact Wemade and Wemix? A: The tax payment of 53.7 billion won ($41 million) is a significant financial burden for Wemade and Wemix. It remains to be seen how this will affect their operations and future plans.

Thailand approves $14 billion airdrop

Thai government officials have given the green light to a massive $14 billion digital wallet scheme. The scheme, which will be financed through a series of loans prescribed under the 2018 State Fiscal and Financial Discipline Act, aims to stimulate the struggling Thai economy.

Under the proposed scheme, Thai nationals will receive up to 10,000 baht ($284) each through an airdrop. However, there are restrictions on the use of funds. Individuals must spend the tokens within six months, and they can only be used for goods and services within a 4km radius of their residence. The tokens cannot be sold for cash or used for debt repayment.

To facilitate the airdrop, the Thai government will develop a “utility type 1” token that will require blockchain-based infrastructure for Know Your Customer (KYC) processes. This infrastructure is expected to take at least six months to roll out, and a 100 baht fee will be charged per user for the KYC process.

The decision to approve the $14 billion airdrop follows the election victory of real estate tycoon and crypto advocate Srettha Thavisin. Thavisin’s victory in August 2023 marked a turning point in Thailand’s approach to cryptocurrencies.

Q&A: What is an airdrop?

Q: What is an airdrop in the context of cryptocurrency? A: In the context of cryptocurrency, an airdrop is when tokens or coins are distributed to holders of a particular cryptocurrency or to a specific group of individuals for free. Airdrops are often used as a marketing strategy to promote a new cryptocurrency or to reward existing holders.

Q: Why is the Thai government conducting a $14 billion airdrop? A: The Thai government is conducting a $14 billion airdrop as a way to stimulate the struggling economy. By injecting funds directly into the hands of Thai nationals, the government hopes to encourage spending and boost economic activity.

Q: What are the restrictions on the use of the airdropped tokens? A: The airdropped tokens can only be spent within a 4km radius of the recipient’s residence and within a specific timeframe of six months. They cannot be sold for cash or used for debt repayment. These restrictions are in place to ensure that the tokens are used to support local businesses and stimulate the local economy.

Q: How will the development of a “utility type 1” token benefit the airdrop? A: The development of a “utility type 1” token will provide the infrastructure necessary for the airdrop. It will enable the implementation of Know Your Customer (KYC) processes to ensure that the airdrop reaches the intended recipients and complies with regulatory requirements.

Bank of China seeks blockchain patent

The Bank of China, a major Chinese state-owned bank, has applied for a patent titled “SDK update method, device and computer equipment based on blockchain.” The patent application pertains to a technology that allows developers to automatically update their Software Development Kits (SDKs) using blockchain.

An SDK is a set of tools that developers use to build software for a particular platform. The technology described in the patent application allows for the description and change information of an SDK to be stored on the blockchain. This enables developers to efficiently update their SDKs as new patches are released, without the need for manual intervention.

The Bank of China has been actively exploring blockchain technologies in various applications. In December 2023, the bank facilitated a $14 million cross-border e-CNY gold purchase in Shanghai. This latest patent application further demonstrates the bank’s commitment to leveraging blockchain for innovation.

Q&A: What is a Software Development Kit (SDK)?

Q: What is a Software Development Kit (SDK)? A: A Software Development Kit (SDK) is a set of tools, libraries, and documentation that developers use to build software applications for a specific platform or operating system. SDKs provide pre-built functions and components that simplify the development process and enable developers to interact with the platform’s features.

Q: How does the technology described in the patent application benefit developers? A: The technology described in the patent application allows developers to automatically update their SDKs using blockchain. This means that developers can easily incorporate new patches and updates into their software without the need for manual intervention. It streamlines the update process and ensures that developers are always using the latest version of the SDK.

Q: Why is the Bank of China interested in blockchain technology? A: The Bank of China recognizes the potential of blockchain technology to revolutionize various industries, including finance. By exploring and leveraging blockchain technology, the bank aims to enhance its services, improve efficiency, and drive innovation. The patent application for the SDK update method is just one example of the bank’s commitment to adopting blockchain in its operations.

Q: How does the Bank of China’s exploration of blockchain benefit its customers? A: The Bank of China’s exploration of blockchain technology can benefit its customers in several ways. By leveraging blockchain, the bank can provide more secure and transparent financial services. It can also streamline processes, reduce costs, and improve the overall customer experience. The adoption of blockchain technology by a major bank like the Bank of China is a positive development for the industry as a whole.

Reference:

1. Hong Kong Legislative Council Member Johnny Ng’s tweet
2. HashKey Group’s disclosure about Bitcoin Spot ETFs
3. South Korean gaming giant Wemix’s announcement about halting block minting rewards
4. Wemade’s disclosure about owing taxes
5. Bank of China seeks blockchain patent

We will continue to update Blocking; if you have any questions or suggestions, please contact us!