This weekly roundup of news from mainland China, Taiwan, and Hong Kong attempts to curate the industry’s top news, including influential projects, changes in the regulatory landscape, and corporate blockchain integrations.
There are many narratives to watch out for as China had a relatively calm week on the regulatory front and markets rebounded. Layer 2 networks continued to make headlines with their large war chests to invest. Avalanche and Arbitrum are two networks that are increasingly popular in China. Both were in the news this week when Avalanche’s $ 180 million fund was announced and the launch of Arbitrum on September 1.
MCDEx, one of the more active DeFi applications in China, took an early first step by launching their mainnet on the second tier of Arbitrum. MCDex launched on-chain BTC / USDC and ETH / USDC perpetual swaps, one of the first projects to take advantage of the speed and scalability of arbitrum. MCDEx and several other Chinese DeFi projects put a lot of money into developing Arbitrum after it was deployed on the Arbitrum testnet earlier this spring.
Traders wishing to take advantage of the current Phase 1 deployment on Arbitrum can request their address to be whitelisted. Many of the trading companies in Asia will likely study the rewards for mining liquidity carefully, especially after the popularity of token-incentivized trading on dYdX.
Punks in Asia
An NFT physical art gallery in Hong Kong will be the new home for two CryptoPunks, bought last week for a total of 218 ETH, or around $ 700,000. The art gallery is slated to open on September 5th and will now show Crypto Punk # 8236 and # 1970. Rumor has it that the buyer of CryptoPunk # 8236 is Mike Cai, billionaire and founder of the popular selfie app Meitu.
Cais Meitu is well known in the Asian cryptocurrency community after announcing earlier this year that it would bought BTC and ETH worth around $ 40 million. With Meitu, Cai successfully recognized the strength of the trend for young adults to use beauty filters with animated animal ears. This is an encouraging sign for people hoping that Cai sees a similar mainstream future for CryptoPunks.
A third punk has also reportedly been bought by the Chinese meme community behind Losercoin or LOWB. The community reportedly bought CryptoPunk # 7326 for 79 ETH.
BSN breaks new turf
Korean blockchain company MetaverseSociety got introduced as a new portal operator for the Blockchain Service Network. This appears to be a third portal after the establishment of the domestic Chinese portal and the global version. The domestic portal can work closely with state-owned companies and organizations, while the global portal works with more blockchain projects in a looser regulatory framework.
This new Korean portal could introduce Chinese companies to the growing community of Korean developers and users. The Blockchain Service Network is a joint initiative of Red Date Technology, the National Information Center, China Mobile and China UnionPay.
We are excited to introduce MetaverseSociety @MarX_Metaverse, the exclusive BSN portal operator in Korea. The portal will launch in Korea in November 2021 and will enable Korean developers to build and operate blockchain applications quickly and effectively. Stay tuned! pic.twitter.com/NcebpSDUEV
– BSN (@bsnbase) September 1, 2021
ECNY is there like a good neighbor
Bank of Communications and China Construction Bank are working with fund managers to explore new use cases to enable users to Pay insurance with the digital yuan. This is another use case that is powered by the top-down financial system and is a serious competitor for private payment processors like Alipay and WeChat Pay.
According to the report, China Construction Bank has already opened a total of 8.42 million eCNY wallets to both home and institutional customers, making China a clear leader in adopting CBDC.
Blockchain meets TradFi
Chinese regulators, including the Securities Association of China and the China Securities Regulatory Commission (CSRC), met in the country’s capital to discuss how blockchain could be used transform digitally of the TradFi industry.
According to the announcement, the science and technology bureau will attempt to build a two-tier structure: an asset tier and a business tier for smart contracts and supply chains. The government has continued to push for blockchain applications where they offer so-called “real economic value”, for example in existing industrial sectors.
In case you forgot
As much as I wanted to end this column on a high note, it wouldn’t be right not to include local authorities’ inevitable reminders of the dangers of cryptocurrency investing. On August 27, the People’s Bank of China released a notice that:
“We are reminding the public once again that Bitcoin and other virtual currencies are not legal tender and have no real value to support them.”
Yin Youping, deputy director of the People’s Bank of China Consumer Protection Bureau, said on Aug. 27 that virtual currency transactions are pure asset speculation and that the public should be more aware of the risks and stay away from them in order to get their “wallets” protection. . Markets reacted little to the news, showing that influence is increasingly turning away from governments in the region.