South Korea’s financial regulator, the Financial Services Commission (FSC), has announced that from July 2024, individuals investing in digital assets will earn interest on their deposits at crypto exchanges. However, this will not apply to non-fungible tokens (NFTs) and central bank digital currencies (CBDCs), which the FSC has excluded. The FSC clarified that NFTs will not be eligible for interest earnings due to their distinctive characteristics and non-fungibility. Primarily perceived as collectables or for ownership purposes, NFTs are not considered typical investment assets. Conversely, CBDCs issued by central banks do not fall under the category of traditional cryptocurrencies and are…

SBI Holdings has entered into a Memorandum of Understanding (MoU) with Aramco, the Saudi Arabia-based global energy corporation. The MoU outlines a potential business alliance between SBI Holdings and Aramco, aiming to explore collaboration in several key areas. These areas include digital assets, co-investments and support for Japanese startups in the digital asset field looking to expand into Saudi Arabia. This MoU allows the companies to discuss additional high-technology business opportunities in digital assets and semiconductors while contributing to Japan-Saudi economic ties. In line with this partnership, SBI Holdings is also progressing towards establishing ‘SBI Middle East’ in Riyadh, expanding…

At the inaugural Green and Sustainable Banking Conference, organised by the Hong Kong Monetary Authority (HKMA), its Deputy Chief Executive Arthur Yuen shed light on the pressing need for immediate action in response to escalating climate challenges. Highlighting the pivotal role of banks in this transition, Arthur emphasised their dual responsibility in driving economic growth and attaining climate objectives. He pointed out the importance of banks enhancing their knowledge of cutting-edge technologies that support the shift to net-zero, thereby effectively directing capital and loans towards the development of such technologies. “Banks must build up their knowledge about the latest technologies…

Travel and leisure booking platform Klook has closed a US$210 million (HK$1.6 billion) financing round. This capital injection will support product development, particularly in expanding city pass options, and bolster marketing initiatives via the Klook Kreator programme. In partnership with Google Cloud, Klook plans to integrate AI technology to enhance customer interaction and content creation. The investment aims to consolidate Klook’s presence in the rapidly evolving Southeast Asian market, targeting the region’s growing middle-class demographics. Leading this round was Bessemer Venture Partners, with significant contributions from BPEA EQT, Atinum Investment, Golden Vision Capital, Krungsri Finnovate (under Bank of Ayudhya), Kasikornbank…

The Hong Kong government is actively working to establish the city as a fintech hub through various strategic initiatives. Significant investments have been made, with HK$200 billion allocated to innovation and technology development in recent years. Specific plans were highlighted at the recent Huawei Cloud Software Partners Go Global Summit in Hong Kong. The government aims to facilitate cross-border data transfers to enable the development of fintech solutions for banks and financial institutions globally. The Office for Attracting Strategic Enterprises (OASES) focuses on attracting high-potential fintech companies to set up operations in Hong Kong. It provides tailored one-stop services to…

Ant Group, the fintech affiliate of Alibaba Group Holding, and Shenzhen-based Huawei Technologies are embarking on a collaborative venture to develop a dedicated version of Ant’s flagship mobile payment application, Alipay, for HarmonyOS, Huawei’s native smartphone operating system. The collaboration is set to offer benefits to users of both Alipay as well as Huawei’s range of devices, and marks a further shift for Huawei away from Google’s Android system. Huawei has been developing more native applications for its HarmonyOS platform ever since being placed on a US trade blacklist, and Alipay along with WeChat Pay have become dominant payment options…

Hong Kong is emerging as a central player in the evolution of property technology (proptech) within the Asia Pacific region, influenced by the distinct preferences of Millennials and Gen Z. These demographic cohorts, expected to represent 25 percent of Asia’s population by 2025, are reshaping the real estate sector, emphasising affordability, flexibility, sustainability, and wellness.  This shift is particularly noticeable in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), where Hong Kong’s proptech developments are becoming increasingly influential. A vital aspect of this evolution is the digitalisation of the real estate sector, highlighted by the growing use of artificial intelligence (AI)…

Tokenization, which refers to the process of converting financial assets into digital tokens on a blockchain or distributed ledger (DLT), offers many benefits in capital markets. Promising enhanced efficiencies, cost reductions, and improved market liquidity are the main benefits, a new paper by the Hong Kong Institute for Monetary and Financial Research, the research arm of the Hong Kong Academy of Finance (AoF) and affiliate of the Hong Kong Monetary Authority (HKMA), concludes. The report, titled “An Assessment of the Benefits of Bond Tokenisation”, shares findings of a research on the potential on tokenization that used data sourced from Bloomberg,…

The Securities and Futures Commission (SFC) has warned the public about suspected virtual asset-related frauds involving Hong Kong Digital Research Institute, also known as HongKongDAO, and BitCuped. The SFC has requested the Hong Kong Police Force block access to both companies’ websites. Regarding HongKongDAO, the SFC said the firm may be spreading false information about itself online, including claims it has obtained licences and approval to conduct regulated activities. However, the SFC noted none of HongKongDAO’s claims about licences are accurate. Additionally, the SFC said BitCuped has falsely claimed affiliations with senior Hong Kong officials Laura Cha and Nicholas Aguzin.…

First Digital, an Asia-based digital asset custody and trust service provider, reported that its stablecoin, First Digital USD (FDUSD), has achieved a market capitalisation of US$1 billion (HK$7.81 billion). This development marks a growth in adopting FDUSD, which was launched less than six months ago. FDUSD is a reserve-backed stablecoin issued by FD121 Limited, a member of the First Digital group and currently available on the Ethereum and BNB Chain networks. Vincent Chok, CEO of First Digital, said, “We are delighted to see FDUSD’s growth since listing in June. Hitting the US$1 billion market cap is a monumental milestone and…

The Bank of Italy and the Bank of Korea have signed a memorandum of understanding (MOU) to facilitate the exchange of knowledge and expertise related to central bank digital currencies (CBDCs) and real-time gross settlement (RTGS) systems. Under the terms of the MOU, the Bank of Italy and the Bank of Korea will share information on the latest proofs of concept, technical standards, and policy considerations related to the potential launch of CBDCs. The partnership reflects differing strategies in CBDC development. South Korea is advancing a wholesale CBDC to support tokenised bank deposits, emphasising programmable payments. Meanwhile, Italy focuses on…

This year’s PwC Global CBCD Index is seeing the addition of new countries into its ranking of the world’s most advanced retail central bank digital currency (CBDC) projects, with India, Japan and Hong Kong joining the list and leading the way for CBDC in Asia. Each year, PwC releases findings of an analysis on central banks’ digital currency efforts, reviewing the different projects that are being conducted worldwide. The PwC Global CBDC Indexes measure and rank both retail and wholesale CBDC projects’ level of maturity based on published speeches and gauges general public interest using Google Trends and Baidu Index…

The Hong Kong Monetary Authority (HKMA) is set to issue a second batch of tokenised green bonds, announced by Chief Executive Eddie Yue Wai-man. This follows the initial issuance of HK$800 million in tokenised green bonds by the Hong Kong government earlier this year. Distributed through a four-bank syndicate, this HKD-denominated bond leveraged Goldman Sachs’ tokenisation platform, GS DAPTM. The Central Moneymarkets Unit (CMU) of the HKMA facilitated clearing and settlement, utilising a private blockchain network. Speaking at a recent summit, Eddie also mentioned the exploration of blockchain technology for the full lifecycle of bond issuance, from creation to redemption. The…

The Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BOT) have launched the FPS x PromptPay Link, facilitating cross-border QR payments between Hong Kong and Thailand. This service, effective from 4 December, allows travellers to make retail payments using QR codes. Through this link, individuals can pay for goods and services by scanning the Hong Kong FPS QR code or the Thai PromptPay QR Code at participating merchants. The service is expected to streamline retail transactions for travellers, enhancing the ease of financial exchanges between Hong Kong and Thailand. Eddie Yue, Chief Executive of the Hong Kong Monetary…

During a recent fintech conference held in Shenzhen, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, emphasised the growing importance of the digital yuan and called for the active participation of “more Hong Kong banks” in this financial initiative. He highlighted the value of integrating the digital yuan network with Hong Kong’s fast payment system (FPS), underscoring the potential benefits of this collaboration. Hang Seng Bank (China) Ltd, Fubon Bank China Co, Standard Chartered (China) Ltd, and HSBC (China) have already begun offering digital yuan services. These services enable individual clients to link their bank cards to…

Hong Kong Fintech Week (HKFW) 2023, organised by the Financial Services and the Treasury Bureau, Invest Hong Kong, and various key financial authorities, concluded on 5 November.  The event drew a record attendance of over 35,000 attendees and more than 5.5 million online views from over 100 economies. It featured over 800 speakers and 700 exhibitors, attracting more than 30 Mainland and international delegations. The event, themed “Fintech Redefined.”, delved into pivotal areas of fintech, such as global regulations, sustainable finance, AI, and Web3. The Secretary for Financial Services and the Treasury, Christopher Hui, highlighted this focus by introducing a…

The first-ever exchange-traded fund (ETF) in Asia, focusing on Saudi equities, commenced trading in Hong Kong on Wednesday. This event marks a milestone in the strengthening ties between China and Saudi Arabia. The ETF, named CSOP Saudi Arabia ETF and managed by CSOP Asset Management based in Hong Kong, features Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), as a principal investor. During its inaugural trading session, the CSOP Saudi Arabia ETF saw its value increase by 0.9%, contrasting with the broader Hong Kong market index’s decline of over 2%. According to Hong Kong’s Financial Secretary, Paul Chan,…

Shenzhen and Hong Kong have announced a joint initiative to launch a verification platform for cross-border data. This platform is part of a broader effort to enhance data flows in various sectors, including finance, within the Greater Bay Area (GBA). The platform, primarily based on blockchain technology, is designed to ensure the credibility of cross-border data, according to a report by the Shenzhen Special Zone Daily newspaper and reported by the South China Morning Post. Initially, it will focus on trials in the financial sector, involving transactions between Shenzhen and Hong Kong. Key financial institutions, including the Bank of China…

OCBC Bank has appointed Wang Ke as the new CEO of its Hong Kong subsidiary, effective 15 December 2023. This move is part of OCBC’s ongoing leadership renewal strategy in the Greater China region. Wang Ke, who was recently named the Head of Greater China on 1 November 2023, will now also oversee the Hong Kong operations. Prior to his current appointments, Wang served as the CEO of OCBC Wing Hang China, which has recently been rebranded as OCBC China following regulatory approval. Joining OCBC Group in 2012, he has held various key positions, significantly contributing to the development of…

The participation of foreign banks in China’s digital yuan initiative, known as the e-CNY, has expanded with the addition of three more banks, reports Cointelegraph. This development follows the earlier integration by Standard Chartered on 27 November (Monday), making a total of four foreign banks now involved. Hong Kong-based HSBC and Hang Seng Bank, along with Taiwan’s Fubon Bank, are the latest to participate in China’s central bank digital currency (CBDC) pilot. These banks will enable their clients to transact with the e-CNY, including transfers and withdrawals. Notably, Hang Seng Bank has implemented features that allow personal banking customers to…