This weekly roundup of news from mainland China, Taiwan, and Hong Kong attempts to collect the most important news in the industry, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.
There are many narratives to be aware of, as China enjoyed a relatively quiet week on the regulatory front and markets rebounded. Layer two networks continued to make headlines with their large war chests of funds to invest in. Avalanche and Arbitrum are two networks that have a growing awareness in China. Both made headlines this week with the announcement of Avalanche’s $ 180 million fund and the launch of Arbitrum on September 1.
MCDex, one of the most active DeFi applications in China, took a first step by launching its mainnet on Arbitrum’s layer two. MCDex launched BTC / USDC and ETH / USDC perpetual exchanges on-chain, one of the first projects to take advantage of Arbitrum’s speed and scalability. MCDex and some other Chinese DeFi projects have gone big on the development of Arbitrum, having been rolled out to the Arbitrum testnet earlier this spring.
Merchants who wish to use the current phase one implementation in Arbitrum can request that their address be whitelisted. Many of the trading companies in Asia will likely study the rewards of liquidity mining closely, 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 of two CryptoPunks, bought last week for a total of 218 ETH, or about $ 700,000. The art gallery is scheduled to open on September 5 and will now feature Crypto Punk # 8236 and # 1970. The buyer for CryptoPunk # 8236 is rumored to be Mike Cai, billionaire founder of the popular selfie app Meitu.
Meitu de Cai is well known in the Asian cryptocurrency community after he announced earlier this year that bought around $ 40 million in BTC and ETH. With Meitu, Cai successfully recognized the strength of the trend for young adults to wear beauty filters with animated animal ears. This is an encouraging sign for people who hope Cai sees a similar mainstream future for CryptoPunks.
The Chinese meme community behind Losercoin, or LOWB, reportedly bought a third punk as well. The community reportedly bought CryptoPunk # 7326 for 79 ETH.
BSN breaking new grass
Korean blockchain company MetaverseSociety It was announced as a new portal operator for the Blockchain Service Network. This appears to be a third portal after the establishment of the national Chinese portal and the global version. The national portal can work closely with companies and state organizations, while the global portal works with more blockchain projects in a more flexible regulatory framework.
This new Korean portal could introduce Chinese companies to the growing community of Korean developers and users. Blockchain Service Network is a joint initiative between Red Date Technology, the National Information Center, China Mobile, and China UnionPay.
Delighted to introduce MetaverseSociety @MarX_Metaverse, the exclusive operator of the BSN portal in Korea. The portal will launch in Korea in November 2021 and will allow Korean developers to build and operate blockchain applications quickly and effectively. Stay tuned! pic.twitter.com/NcebpSDUEV
– BSN (@bsnbase) September 1, 2021
Like a good neighbor, eCNY is there
The Bank of Communications and the Construction Bank of China are exploring new use cases with fund managers to enable users pay the insurance with the digital yuan. This is another top-down financial system-driven use case, representing a serious competitor to 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 for both individual users and institutional clients, making China a clear leader in CBDC adoption.
Blockchain meets TradFi
Chinese regulators, including the China Securities Association and the China Securities Regulatory Commission (CSRC), met in the nation’s capital to discuss how blockchain could be used to digitally transform the TradFi industry.
Per the announcement, the Office of Science and Technology will seek to build a two-tier structure: an asset layer and a business layer for smart contracts and supply chain. The government has continued to push for blockchain applications to provide so-called ‘real economic value’, as in existing industrial sectors.
In case you forgot
As much as I wanted to end this column on a high note, it would be wrong not to include the inevitable reminders from local authorities about the dangers of investing in cryptocurrencies. On August 27, the People’s Bank of China published a notice that:
“Once again, we remind the general public that bitcoin and other virtual currencies are not legal tender and have no real value to back them up.”
Yin Youping, deputy director of the Consumer Protection Bureau of the People’s Bank of China, said on August 27 that transactions related to virtual currencies are pure investment speculation, and the public should be more aware of the risks and stay away from them to protect their “wallets”. . Markets barely reacted to the news, showing that more and more influence is moving away from governments in the region.