Central bank digital currencies (CBDCs) are digital, blockchain-based versions of fiat currency. And now, a handful of countries are also looking to launch their own digital asset exchange platforms. In this article, we will examine three such countries that are developing their own crypto exchange platforms.
Cryptocurrency is the latest buzzword in the world of finance and technology. The invention of blockchain, the technology that powers cryptocurrencies and other digital assets, has revolutionized the world in many ways. As such, governments around the world are beginning to realize the endless possibilities that blockchain and crypto can offer.
Therefore, many countries are racing to develop their own blockchain and crypto-based systems and services. It started with several countries including India launching their Central Bank Digital Currency (CBDC) projects. CBDCs are digital, blockchain-based versions of fiat currency. And now, a handful of countries are also looking to launch their own digital asset exchange platforms. In this article, we will examine three such countries that are developing their own crypto exchange platforms.
China digital asset trading platform
Yes. This is literally the English translation of China’s first state-backed NFT market. This may come as a surprise to many as the Chinese government has been notoriously against the use of digital assets in the country. For example, China has already banned bitcoin mining in some parts of the country. Furthermore, in 2021, the country also banned crypto transactions and exchanges.
However, the government is actively working on its CBDC project, Digital Yuan, which is running as a pilot program in several cities. And in late December 2022, the government also announced the China Digital Assets Trading Platform. The launch of the trading platform seems in line with China’s mission to build its own regulated crypto and blockchain ecosystem.
The platform will be operated by two state-owned entities – Art Exhibition China and China Technology Exchange – as well as a private firm called Huban Digital. The platform will be hosted on its own blockchain called the “China Cultural Protection Chain”.
In China, NFTs are viewed as “digital collectibles” and unlike the rest of the world, NFTs cannot be purchased using cryptocurrencies in China. Furthermore, in November 2022, the Hangzhou Internet Court ruled that NFTs are virtual assets protected by law. It states that these digital collectibles have “commodity characteristics of property rights such as value, scarcity, controllability and tradability.” However, the laws surrounding these properties are still being developed.
“In terms of industry supervision and regulation, digital assets represent a new form of commerce, and much remains to be refined with respect to laws, regulations and supervisory policies,” said Yu, an expert on digital assets and metaverse development in China. Jianing said. They said. Therefore, trading platforms may allow regulated trading of NFTs until a better legal framework is in place for these digital assets. trading platform “could help regulate and avoid excessive speculation in secondary
Indonesia to launch national crypto exchange by June
Indonesia is another country looking to launch its own national cryptocurrency exchange. The platform was supposed to be launched in December 2022, however, there were several delays as government officials wanted to ensure all requirements, and processes were carried out with excessive planning.
“We shouldn’t be in a hurry because if it’s not ready, things will go awry,” Trade Minister Zulkifli Hasan said on February 2. The government doesn’t want the public to be overburdened because people don’t know much. Inauguration of Crypto Literacy Month in Jakarta. Hassan also revealed an updated release date for the exchange of June 2023. The exchange will function like any other trading platform. It will act as an intermediary between buyers and sellers while providing crypto custodial services.
The move to launch the exchange is in line with the country’s changing attitude towards crypto. As of now, cryptos are treated similar to commodity contracts. As such, they fall under the purview of the Commodity Futures Trading Regulatory Agency – commonly known as Bapebati in Indonesia. However, according to the amended laws, which were approved in December 2022, cryptocurrencies will be recognized as regulated financial securities in the future and will be brought under the purview of the Financial Services Authority. Therefore, the establishment of a national crypto exchange may take place in anticipation of this change in regulatory approach.
Get ready for the Russian national crypto exchange
Another country that is set to launch a government-backed cryptocurrency exchange is Russia. According to reports, Russian legislators are working hard to put together an amendment to allow the introduction of a national crypto exchange.
Moreover, the idea has received support from both the Ministry of Finance and the Central Bank of Russia. It is also surprising that the two entities have often been at loggerheads with regards to crypto regulation. One of the main reasons for the launch of the exchange is to promote local crypto trading and create a revenue source through taxation of these transactions.
“There is no point in denying the existence of cryptocurrencies, the problem is that they circulate in a huge flow outside state regulation,” said Sergei Altukhov, a member of the Duma. They lost billions of tax revenue to the federal budget. ruble. Economic Policy Committee.
These countries launching national crypto exchanges is an encouraging sign for investors and businesses in the digital asset space. This points to the widespread adoption and future potential of these assets and their underlying blockchain technology. Seeing the success of these countries, many others may follow suit and see mainstream adoption of cryptocurrencies and other digital assets.
(Editing: Anushka Sharma)