Korea Joins OECD’s CARF initiative to enhance crypto tax compliance

Metabora Singapore Launches Global Pre-Registration for PvP Gaming Platform ‘Skill Blitz’Metabora Singapore, a subsidiary of South Korean blockchain game developer Metabora, announced today that it has begun the global pre-registration of Skill Blitz (formerly known as Borabattle), a gaming platform that enables players to engage in player-versus-player (PvP) battles.Photo by Hans-Peter Gauster on UnsplashAvailable on various app storesSkill Blitz is developed by Neptune Company, a game affiliate of South Korean tech giant Kakao. The platform allows early sign-ups from all over the world except for South Korea, China, and Singapore. Those who wish to participate can register through the Google Play Store, the Galaxy Store, and the Apple App Store.In-game item giveawayAt the time of Skill Blitz’s official release, Metabora Singapore will run a promotional event that offers in-game items and exclusive profile pictures.Trade in-game items with cryptoSkill Blitz is a joint project initiated by key governance council members of the Bora blockchain, namely Neptune Company, Kakao Games, Mobirix, and Metabora. This platform enables players to engage in friendly competition across a variety of casual games, including solitaire, bingo, and puzzles. Furthermore, gamers can visit the Bora Portal to trade their in-game items for virtual assets such as BORA, MATIC, and USDC.In this collaborative initiative, Neptune will take charge of Skill Blitz’s development and service, while Kakao Games will provide support for service operations. Metabora will be responsible for overseeing the app’s blockchain infrastructure, and Mobirix will provide its own content to the app and utilize its user base to drive global marketing efforts for the application.

The Korea Insurance Institute (KII), an incorporated association that trains insurance professionals, has initiated a phased process to become South Korea's first institution to hold Bitcoin (BTC), while the national tax agency is moving to enlist private crypto custodians following a recent security breach, local media reported.Photo by Kanchanara on UnsplashThe non-profit KII has established a digital asset review committee to establish internal regulations for managing cryptocurrencies as institutional holdings, Yonhap Infomax reported. The move is designed to prepare for an upcoming legal framework governing Korean won-backed stablecoins. While retail crypto investment is legal in South Korea, corporate and institutional participation remains tightly restricted. However, the institute noted that KII could still acquire digital assets through an existing regulatory channel, as non-profit organizations are permitted to hold crypto wallets. The newly established committee will draft guidelines covering crypto operations, risk management, accounting and tax standards, and internal controls. Once the regulatory framework is in place, KII plans to spend its stablecoins to acquire BTC and Ethereum (ETH). Ha Tae-keung, president of KII, said the launch of the digital asset review committee could mark a new milestone for innovation in asset management within the finance and insurance industry. He added that the institute would seek to serve as a working model for a new financial system shaped by artificial intelligence and digital assets. Tax agency seeks custodians to manage cryptoIn parallel government developments, the National Tax Service (NTS) is pushing to select custody providers to manage confiscated digital assets as early as the first half of this year, according to a ZDNet Korea report.  The policy shift follows a security breach late last month, when confiscated cryptocurrency was stolen on two occasions after a mnemonic seed phrase was inadvertently disclosed in an NTS press release detailing on-site asset seizures from tax evaders. To prevent future breaches, an NTS task force launched earlier this month is developing comprehensive manuals for the confiscation, storage, and sale of digital assets. The group is also developing criteria for selecting custodians, including security standards, company size, and required insurance coverage under the Virtual Asset User Protection Act. A source familiar with the matter told ZDNet Korea that the NTS is assessing security standards and other key criteria ahead of selecting a custodian, adding that not all providers meet the strict requirements for government appointment. The NTS task force is also preparing to set up a dedicated digital assets division to oversee crypto issues, with final details to be determined in consultation with the Ministry of the Interior and Safety. 

South Korea Embarks on Wholesale CBDC Pilot ProgramAiming to pave the way for a future-oriented monetary infrastructure, South Korean financial agencies announced a plan on Wednesday (local time) to pilot a central bank digital currency (CBDC). This trial is designed to evaluate its practical use in real-world scenarios.The Bank of Korea (BOK), alongside the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), has been working with the Bank for International Settlements (BIS) from the inception of this project’s blueprint. Together, they plan to partner with multiple commercial banks to successfully carry out this initiative.Photo by Y K on UnsplashWholesale CBDCThe test will concentrate on a wholesale CBDC designed for transactions and settlements between financial institutions. This concept is akin to how commercial banks use reserves in their central bank accounts for transactions and settlements.Meanwhile, banks will introduce tokenized deposits for public use within the CBDC network. These payment instruments will circulate securely within the new monetary infrastructure built by the BOK and managed jointly with the FSC and the FSS.The pilot of this cutting-edge monetary infrastructure is poised to set the stage for the introduction of diverse, innovative payment and financial services that stand out from current offerings. This effort will also lay the groundwork for newer financial products, like security tokens, to be traded with greater safety and efficiency.Participation from citizensThe test aims to complete its Proof of Concept (PoC) through technical trials in simulated settings. Furthermore, a select group of citizens will be given the opportunity to engage in specific use case tests, letting them experience firsthand the advantages of the emerging digital payment methods. This project will significantly contribute to the future research and development of CBDC infrastructure.The Korean financial authorities have engaged in in-depth discussions regarding policy matters leading up to the test. To ensure alignment with existing laws, only banks will be involved in this initial phase. Decisions on expanding the test will come later, after a thorough evaluation of relevant policy considerations after the trial.The agencies will continue working to ensure that transaction tests involving citizens are conducted with sufficient user protection measures under the existing legal framework.Moreover, from the outset of the test’s preparation, the BIS offered insights from its research and development experiences with CBDC systems. In particular, members from the BIS’s Innovation Hub and the Monetary and Economic Department provided technical advice on designing and constructing a CBDC network. Stemming from their discussions, the BIS and the BOK jointly released a report highlighting the test’s importance and its intricately crafted model.This trial is a step towards identifying the best CBDC model suited for Korea’s financial and economic landscape. It’s important to note that the test doesn’t necessarily indicate a complete rollout of a CBDC or the final version of a CBDC network.Moving forward, the BOK, FSC, and FSS will form a collaborative working group. They’ll work hand-in-hand with pertinent ministries and entities, including the Ministry of Economy and Finance, to ensure a seamless execution of the test. Their technical partnership with the BIS will also remain ongoing.The selection process for a system developer began on October 4. Later this month, there will be an informational session for companies and banks engaged in the project. By the end of November, the financial authorities will unveil information regarding the banks involved and the specific use cases slated for testing. Public involvement is anticipated to start in the fourth quarter of next year.