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The Bank of Korea (BoK) has selected Jeju, Busan, and Incheon as potential sites for its central bank digital currency (CBDC) pilot program, notably excluding the capital, Seoul. The country’s central bank will ultimately select one region to experiment with public-level payments and distribution, alongside securing franchises capable of processing CBDC payments. Despite Busan’s significant user base, reports indicate the officials’ preference for Jeju. Meanwhile, several Korean banks are exploring stablecoins as an alternative to CBDCs. Source: https://cointelegraph.com

Worldcoin, the new project led by OpenAI CEO Sam Altman, has come under scrutiny from the Bavarian State Office for Data Protection Supervision in Germany due to concerns about its large-scale processing of sensitive biometric data. The project, which launched recently, requires users to provide iris scans for a digital ID and potentially free cryptocurrency. The primary concern raised by Michael Will, the president of the regulator, is whether users have given explicit consent for their biometric data to be processed based on “sufficient and clear” information. Although Worldcoin asserts that it complies with EU laws, privacy advocates and supervisory authorities across Europe are voicing worries and interest in its wide-scale data collection and storage practices. Source: https://www.reuters.com

The Dubai subsidiary of leading cryptocurrency exchange Binance, Binance FZE, has reportedly secured an operational minimum viable product (MVP) licence from the Virtual Asset Regulatory Authority (VARA) in Dubai. This development, officially announced on 31 July, permits Binance to offer cryptocurrency exchange and virtual asset broker-dealer services. However, these services are currently accessible only to institutional and qualified retail investors in Dubai who fulfil specific eligibility criteria. Qualified retail clients must be aged 21 or above and possess at least 500,000 United Arab Emirates dirhams ($136,000) in net liquid assets, and present valid identification and UAE residency documents. Source: https://cointelegraph.com

Hong Kong and Saudi Arabia are planning to increase their financial collaboration, particularly in the areas of tokenization and payment infrastructures. In a recent meeting between the Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA), both entities discussed key initiatives such as advancing financial infrastructure, enhancing market connectivity, and promoting sustainable development. They also signed a Memorandum of Understanding (MoU) to promote joint discussions on financial innovation. However, the official joint announcement did not clarify if the partnership would involve joint crypto-related efforts. While Hong Kong recently allowed retail investors to trade crypto, Saudi Arabia has remained quiet on its stance towards crypto since 2019. Source: https://cointelegraph.com

Cryptocurrency platform Crypto.com has been granted permission by the Dutch central bank, De Nederlandsche Bank (DNB), to offer its services in the Netherlands. This approval follows an extensive review of the firm’s business and its adherence to the country’s anti-money laundering and counter-terrorism financing requirements. Crypto.com is allowed to provide cryptocurrency wallets to users and process fiat currency on cryptocurrency exchanges. Crypto.com now joins 36 other crypto-related firms registered with DNB, including Coinbase Europe, eToro, and Bitstamp. Meanwhile, Binance has decided to stop its services in the Netherlands after it failed to meet registration requirements. Source: https://cointelegraph.com

The world’s leading cryptocurrency exchange, Binance, has reportedly withdrawn its application for a crypto licence in Germany, revealing its reconsideration of immediate expansion strategies in the face of increasing regulatory scrutiny. Despite facing a lawsuit from the US Securities and Exchange Commission (SEC) and ongoing investigation in France, Binance stated it still plans to apply for a suitable licence in Germany in the future. The exchange recently had to leave the Netherlands due to non-compliance with the country’s registration requirements. Source: https://www.reuters.com

A recent survey of the global investment industry conducted by the CFA Institute reveals a distinct divide in the attitudes of respondents towards Central Bank Digital Currencies (CBDCs). Out of over 4,150 respondents, only 42% backed the idea of launching CBDCs. Notably, only 37% of respondents from developed markets supported CBDCs, compared to 61% from emerging markets. The responses also vary in each country, with a mere 31% in the US, but as high as 70% in China, supporting the introduction of CBDCs. The respondent’s primary concerns include the potential failure of CBDCs to address a compelling need and the risks of cyberhacking and data privacy. Source: https://www.reuters.com

In a significant policy shift, the Namibian government has officially signed the Namibia Virtual Assets Act 2023 into law to regulate Virtual Asset Service Providers (VASPs). This landmark legislation, which marks the country’s first legal framework for cryptocurrency-related activities, aims to oversee crypto exchanges, ensure consumer protection, prevent market abuse, and mitigate money laundering and terrorist financing risks. Penalties for non-compliance could reach up to $671,000 and 10 years in prison. However, the country’s central bank maintains that cryptocurrencies will not be considered legal tender. The effective date of the new law will be determined by the Ministry of Finance. Source: https://cointelegraph.com

The Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority has reportedly given Rain, a cryptocurrency firm, approval to provide brokerage and custody services to residents. Rain, headquartered in Bahrain, mainly provides crypto services across the Middle East and Turkey. To strengthen user protection, Rain CEO Joseph Dallago said the firm has partnered with a local bank for its services. This follows the crypto exchange Binance received similar regulatory approval last year. Source: https://cointelegraph.com

The new Worldcoin WLD token is now being traded on crypto exchanges like Binance, Bybit, Huobi and Gate. In addition to standard trading, Binance also allows users to deposit their WLD tokens and plans to introduce leveraged trading. CoinGecko data indicates a total supply of 10 billion tokens, marking a fully diluted value of $25.6 billion on 24 July. The WLD token is associated with the Worldcoin project led by Sam Altman, CEO of OpenAI, which uses biometric verification to authenticate users. Source: https://decrypt.co

The world’s largest crypto exchange Binance, and its CEO, Changpeng Zhao, plan to contest and seek dismissal of a complaint filed by the Commodity Futures Trading Commission (CFTC). The CFTC alleges that Binance contravened the Commodity Exchange Act and certain related federal regulations from July 2019, offering and executing unlawful commodity derivatives transactions for US customers. Binance and Zhao also face allegations from the US Securities and Exchange Commission (SEC) and the Justice Department. Source: https://www.reuters.com

Russia is progressing with its Central Bank Digital Currency (CBDC), the digital ruble, with President Vladimir Putin officially signing the bill into law on 24 July. The law grants the Russian central bank the authority to implement the first CBDC pilot with real consumers in August. The country’s central bank is expected to manage the digital ruble infrastructure and oversee all stored assets. Serving as a payment and money transfer method, the digital ruble will operate as an alternative alongside cash and non-cash rubles. Its use will be optional, with the central bank foreseeing mass adoption no earlier than 2025-2027. Source: https://cointelegraph.com