Cryptocurrency Developments in East Asia: A Weekly Overview

Weekly Highlights: East Asia’s Cryptocurrency Field

This week, we’re diving into notable updates from East Asia’s crypto sector, including Thailand’s ambitious universal basic income (UBI) initiative, ongoing challenges faced by South Korean firms, and insights into Vietnam’s rapidly growing digital asset market.

Thailand’s Bold Move: Crypto-Based UBI

Thailand is gearing up to launch a nationwide airdrop, where every citizen aged 16 and older will receive a sum of 10,000 baht (approximately $285). This initiative is spearheaded by the ruling Pheu Thai party, which will collaborate with the Bank of Thailand to create a “utility type 1” token must-have for this distribution.

The proposed solution involves a blockchain-based Know Your Customer (KYC) process, which is expected to take at least six months to implement. Each user will need to pay a fee of 100 baht for the KYC process, and the project is subject to the approval of Thailand’s Securities and Exchange Commission.

The Political Drive Behind the Initiative

On August 22, Srettha Thavisin, a real estate developer and crypto enthusiast, was elected as Thailand’s new prime minister. During his campaign, Thavisin promised to introduce a basic income stimulus via digital currency for each citizen. Notably, his firm, Sansiri, previously invested in Thai asset tokenization provider X Spring, purchasing a 15% stake for 1.6 billion baht ($45.7 million).

Funding and Limitations of the Airdrop

According to the Thailand Development and Research Institute, the funds for this UBI project will come from tax revenues in the 2024 fiscal year, with an estimated budget of 560 billion baht ($16 billion). However, it’s important to note that the tokens won’t function like conventional cash. Recipients can only use them for purchases within a four-kilometer radius from their homes, and the tokens will expire six months after issuance, with no option for cash conversion or settling debts. (CoinDesk)

Delio Faces Severe Asset Losses

In less favorable news, South Korean Bitcoin lender Delio is facing significant financial challenges. As of August 30, reports indicate that the company, which manages over $1.2 billion in digital assets, anticipates recovery rates ranging from 50% to 70% for its holdings. The firm halted deposits and withdrawals back in June, following revelations of its substantial counterparty risk linked to fellow lender Haru Invest. You might also enjoy our guide on Spartans’ Hypercar Giveaway Redefines Value Beyond BC.Game &.

Investigations and Bankruptcy Proceedings

Haru Invest also suspended operations amid allegations of fraud and is currently undergoing bankruptcy proceedings. Delio is under investigation by South Korean regulatory bodies over claims of fraud and embezzlement. Although Delio had previously announced plans to resume withdrawals, updates on this have since been lacking.

Vietnam’s Crypto Adoption Surge

On a more positive note, Vietnam is leading the world in cryptocurrency adoption, with about 19% of its population aged 18 to 64 engaging with digital assets, according to a report released on August 30 by Kyros Ventures and Coin 68, in collaboration with Animoca Brands. The nation is home to around 200 blockchain projects and is set to generate an estimated $109.4 million in revenue from crypto exchanges this year.

Investment Trends and User Insights

Among various insights, it was found that 76% of Vietnamese crypto investors rely on recommendations from friends for their investment decisions, a statistic that’s notably higher than similar surveys conducted in the U.S. Plus, nearly 70% of respondents believe that the bearish trend in the crypto market will either end within a year or has already concluded. Interestingly, while almost half of the surveyed users find centralized exchanges equally useful as decentralized ones, a staggering 90% still prefer decentralized platforms.

Binance Japan’s Ambitious Plans

In other news, Binance Japan is gearing up to expand its offerings significantly. During an online briefing on August 30, CEO Tsuyoshi Chino announced plans to list 100 new coins and tokens shortly. Currently, Binance Japan provides spot trading and staking options, but margin trading is on hold until the exchange secures the necessary regulatory licenses.

Market Position and Recent Developments

As reported, Binance’s parent company has amassed over 150 million users, with an impressive daily trading volume averaging around $65 billion. Earlier this year, Coinbase ceased its operations in Japan, citing unfavorable market conditions, which has left an opening for Binance to flourish. For more tips, check out Understanding Bitcoin’s Soft MEV: Transaction Ordering Expla.

Shenzhen’s Airdrop Initiative for Digital Yuan

Meanwhile, Shenzhen officials have pledged to allocate 15 million digital yuan (about $2.1 million) for municipal airdrops over the next three years as part of a government initiative to promote the digital Chinese yuan (CBDC). Binqquan Wei, vice governor of Agricultural Bank of China Shenzhen, emphasized the efficiency of the digital yuan in transaction receipts thanks to its immutable distributed ledger technology. (Bitcoin.org)

Stimulating the Economy Amid Challenges

The central government in China has been actively promoting the digital yuan as a strategy to invigorate the economy amid ongoing recession fears. Since its inception in 2021, the CBDC has recorded over $123 billion in total transactions, with pilot programs operating across 17 provinces and 26 districts.