🪙LatAm's 1st Bitcoin Futures Index, 🦾Korea Post-Do Kwon Drama, 🎉Ripple's Latest Win

April 15, 2023

Your 5 minute emerging market web3 weekly update

In This Issue

Latin America and the Caribbean
🔸Argentina Approves First Regulated Bitcoin Futures Index in Latin America
🔸Brazilian Institutions Invited to Participate in Digital Real Pilot Focused On Programmability and Privacy

Asia
🔸Korea's Crypto Market Moves Past Terra's Demise, Optimism Remains Strong
🔸Hong Kong Rolls Out Red Carpet for Crypto Finance Sector

Africa
🔸Zebedee and Bitnob Partner to Bring Bitcoin Lightning Network to African Gaming
🔸Zambia’s Crypto Testing to Be Completed by June, Regulation to Follow

Eastern Europe
🔸Montenegro Partners with Ripple to Develop National Digital Currency
🔸Russian Ministry of Internal Affairs Concludes Investigation on WEX Crypto Exchange Fraud Case

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Latin America and the Caribbean

Image Credit: Kanchanara via Unsplash

Argentina's securities regulator, the National Commission of Value, has approved a Bitcoin-based futures index, set to launch on the Matba Rofex exchange. The Bitcoin futures contract will be based on the price of BTC provided by various entities in the nation offering BTC/ARS trading pairs and will be settled in pesos. The financial instrument will be the first Bitcoin futures index in Latin America and is aimed at offering qualified investors a way to gain BTC exposure in a transparent and regulated environment.

The Central Bank of Brazil is inviting institutions to participate in the pilot phase of the digital real central bank digital currency. Around 10 participants will be selected, with a focus on programmability versus privacy in a regulated environment. The central bank plans to test simulated operations with federal government bonds, candidates must submit transaction simulation projects compatible with their operations, have experience with distributed ledger technology and testing projects within the National Financial System (SFN), and already have access to the SFN network.

Asia

Image Credit: Ian Taylor via Unsplash

The Terra crash has had a psychological impact on Korea's crypto industry and its regulation, leading to a delay in the Digital Asset Basic Act and causing traditional Korean companies to become more cautious about investing in crypto. However, Korea's retail market still shows its power and crypto builders and traders are already moving past the Terra crash. The arrest of Terraform Labs co-founder and CEO Do Kwon has helped bring crypto assets back into the regulatory spotlight, adding some urgency to a long-delayed process of enacting crypto-related bills.

Hong Kong is attempting to become a finance hub for cryptocurrencies. While some remain sceptical about Hong Kong's regulatory regime on cryptocurrencies, at least 10 companies with Chinese founders have announced or are planning to announce their bid for crypto licenses in the city including firms such as OKX, Bybit, and Huobi. The Hong Kong government is touting its support for crypto, and the city is scheduled to host 100 crypto-related conferences and lavish parties in April to promote the industry.

Africa

Image Credit: Francesco Ungaro via Pexels

Fintech and payments processor Zebedee has partnered with Bitnob, a Nigerian crypto exchange, to offer payment and reward options in Africa through the Bitcoin Lightning Network. Zebedee’s chief strategy officer Ben Cousens explained, “If I’m Activision Blizzard or EA Games and I have 30 million players of my games in Africa, and I run tournaments or giveaways, I cannot pay those players on fiat rails — it is too expensive. I am limited to the U.S., and I lose money from loss of engagement. Try sending $0.01 to these territories on another rail." Gamers in Africa can earn Bitcoin through Zebedee-powered apps and games, and the partnership allows developers to replace in-game points rewards with satoshis, the smallest denomination of Bitcoin, which can be converted into local currency like the Nigerian naira.

Zambia is planning to finish testing simulated cryptocurrency usage by the end of June to develop regulations that balance innovation with citizen safety. Before cryptocurrencies can be introduced, the southern African country requires digital infrastructure, including digital identities. According to Science and Technology Minister Felix Mutati, "Given that cryptocurrency is very volatile…the central bank is simulating that to see what would happen in the real world. The results will assist us (in) the formulation of the regulation."

Eastern Europe

Image Credit: Charles Deluvio via Unsplash

The Central Bank of Montenegro has partnered with Ripple to develop a strategy and pilot program for the launch of the country's first digital currency in the form of a central bank digital currency (CBDC) or national stablecoin. The project aims to promote financial inclusion, improve payment security, and increase cross-border payments efficiency. The central bank will work with the government and academia to create a practical digital currency solution to test the main blockchain technology's functionality and potential, while also analyzing the advantages and risks that CBDCs or national stablecoins could pose.

The Russian Ministry of Internal Affairs has completed a preliminary investigation into a criminal case against the former system administrator of the WEX exchange, accused of misappropriating assets worth over three billion rubles. The Ministry of Internal Affairs did not name the accused, but experts suggest it is Alexander Bilyuchenko, who was detained in March 2022. Investigators say that in October 2018, Bilyuchenko blocked access to accounts and wallets controlled by the World Exchange Services Pte. Ltd, appropriating users' funds and crypto assets.

Thanks for reading and have a great week ahead!

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Written by Jon Lira. Connect with him on LinkedIn.

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