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

Aptos and Lotte Group Collaborate on Pink Bear NFTs to Drive Web3 ExpansionLayer-1 blockchain network Aptos took to X (formerly Twitter) to announce a partnership with Lotte Group, an industrial conglomerate based in South Korea with a specialization in the retail business. This strategic collaboration aims to propel Lotte’s expansion into the dynamic Web3 landscape.Photo by 김 대정 on PexelsPink bear NFTsThe initial focus of their collaboration will center around Bellygom, the pink teddy bear mascot of Lotte Home Shopping — a major player in the Korean media commerce industry. NFT projects associated with Bellygom, including the Bellyland universe, are under the stewardship of Daehong Communications, a marketing solutions company affiliated with Lotte. Aptos will play a pivotal role by providing the backend support for the development of Super Jelly, a reward system within Bellyland. These Super Jelly rewards, slated to be launched on the Aptos mainnet, will be attainable through engaging in Jelly Adventures — a collection of diverse games and missions within Bellyland.Aptos and Lotte Group have expressed their enthusiasm for venturing into Web3 initiatives throughout multiple business areas of the South Korean retail giant. Aptos noted that more updates will follow as this collaboration unfolds.Earlier partnership with PolygonThe momentum behind Daehong Communications’ Bellygom NFT initiatives for global expansion grew as it joined hands with blockchain company Polygon in February. This partnership led to the migration of Bellygom NFTs from the Klaytn blockchain to the Polygon blockchain in April.Lotte’s hospitality business and NFTsIn June, Daehong employed NFTs to attract customers to various Lotte entities. Through Korea’s largest NFT trading platform, Pala, the marketing affiliate sold Magic Ride NFTs, aiming to enhance customer engagement for the Lotte World amusement park, Lotte Duty Free, and Lotte Hotels.

Crypto licensing developments in Singapore over the course of 2024, allied with feedback from industry insiders, suggest that the city-state has furthered its development as a crypto industry hub in the Asia-Pacific (APAC) region.Photo by Mike Enerio on UnsplashDoubling up on licensing issuanceAccording to a report published by Lianhe Zaobao, a Chinese language newspaper in Singapore, the Monetary Authority of Singapore (MAS), had issued twice the number of Major Payment Institution (MPI) licenses in 2024 by comparison with the previous year. Four licenses were issued in 2023 to Crypto.com, Coinbase, Ripple and Blockchain.com. That compares with 13 licenses issued in 2024 to companies such as GSR, BitGo, Anchorage, Upbit and OKX. This uptick in licensing signals a regulatory regime that is innovation-friendly, resulting in Singapore becoming a key destination for startup companies in the crypto and Web3 space. Risk-adjusted regulatory approachAccording to William Croisettier, chief growth officer at ZKCandy, Singapore is primed to continue its development as a leading crypto hub for Web3 businesses within the APAC region. ZKCandy is a gaming-focused hyperchain within the zkSync ecosystem that has developed due to a collaboration between the Ethereum layer-2 zkSync network and Southeast Asia’s largest gaming developer, iCandy. Croisettier spoke to Cointelegraph on the matter recently, stating: “The country adopts a risk-adjusted approach to crypto regulation, focusing on the biggest digital currencies to protect investors. Singapore also makes it easy for new crypto firms to interact with local banking partners, a provision considered a luxury in other parts of the world.” Mouloukou Sanoh, co-founder and CEO of Dubai-based Mansa Finance, a DeFi platform that provides liquidity to cross-border payment companies, has also spoken positively about Singapore’s status within the crypto sector. Sanoh stated: “With its clear regulations and support for innovation, Singapore attracts top companies and talent, fostering a thriving ecosystem. This proactive approach signals a strong commitment to digital finance, contrasting with Hong Kong's more cautious stance.” Positive study findingsThese views correlate with a recent study carried out by ApeX Protocol, a multi-chain liquidity platform. The study applied a ranking to ten jurisdictions based on factors such as jobs created in the blockchain field, the number of crypto exchanges located within a jurisdiction and the number of blockchain-related patents filed. On that basis, it found that Singapore topped the rankings, ahead of Hong Kong in second place. Singapore was found to have 81 crypto exchanges located within the city-state, over 1,600 blockchain-related patents filed and 2,433 crypto-sector jobs created. A recent survey conducted by CoinDesk found that from a crypto adoption perspective, Thailand, followed by the United Arab Emirates (UAE) and India, lead the APAC region. Of the 10 countries surveyed, Singapore weighed in in seventh place with a 23% adoption rate, just one percentage point behind Hong Kong with 24%. As Hong Kong and Singapore compete to attract crypto-related business, both still have room for improvement when it comes to the crypto adoption metric in comparison with other Asian countries. 

Indian cryptocurrency investment platform Mudrex has unveiled plans to provide access to U.S. spot Bitcoin exchange-traded funds (ETFs) for investors within the world’s most populous country. Serving Indian institutional investorsThis initiative, as disclosed by CEO and co-founder Edul Patel in discussion with local media, marks a particularly significant milestone for Indian institutional investors who previously lacked direct access to spot Bitcoin ETFs, which were predominantly available to retail investors through U.S. stock investing firms. In its initial phase, Mudrex intends to list the top four BTC ETFs from prominent entities including BlackRock, Fidelity and Franklin Templeton. While eleven BTC ETF products currently exist in the United States, most commentators agree that there will be a consolidation with the majority unlikely to survive in the long run. Mudrex will ensure compliance by being registered with the Financial Intelligence Unit (FIU) of India. The company already provides clients with access to a diverse selection of over 350 cryptocurrencies and crypto baskets, coupled with the provision of actionable insights to help clients reach investment decisions effectively. Patel outlined the rationale behind the product offering, stating:“Seeing the increasing demand for Bitcoin spot ETFs and user requests on our platform in the past few months, we have decided to launch it for Indian investors.”Photo by rupixen on UnsplashPurchased under Liberalized Remittance SchemeMudrex ensures actual transactions are processed through broker partners in the U.S., while its Indian subsidiary facilitates the spot Bitcoin ETF service. This development unfolds amidst a nuanced regulatory environment in India, where regulatory bodies such as the Reserve Bank of India (RBI) and the Finance Ministry's Intelligence Unit hold varying stances on cryptocurrency. While the RBI remains cautious about crypto, the Finance Ministry's Intelligence Unit has registered numerous Indian crypto service providers and imposed rigorous taxation policies. Patel expanded on the alignment of spot Bitcoin ETFs with the Liberalized Remittance Scheme (LRS), a framework that simplifies overseas investments for Indian investors. The Reserve Bank of India (RBI) prescribes a limit of $250,000 per year for overseas investments by Indians under the LRS. In line with that, Mudrex is facilitating a minimum investment of $5,000 and a maximum of $250,000. Accessing spot Bitcoin ETFs through Mudrex under the LRS framework offers a more tax-efficient avenue compared to domestic crypto exchanges in India. Among Mudrex's clientele, comprising approximately 350 institutions, Patel reveals that around 20 have initiated the process of joining the platform for spot BTC ETF investments. With an anticipated average ticket size of $110,000, this demonstrates a growing appetite among institutional investors for exposure to Bitcoin ETFs facilitated through Mudrex's platform. This move by Mudrex is interesting when contrasted with recent comments made by RBI governor Shaktikanta Das, who suggested that the central bank wasn’t in favor of the offering of such products in India despite the decision by the U.S. authorities to permit spot Bitcoin ETFs. Hong Kong is working towards the approval of such products while hoping to get out in front of the competition by being the first to launch a similar Ethereum-based product. Meanwhile, the London Stock Exchange announced on March 11 that it intends to commence accepting applications for Bitcoin and Ether exchange-traded notes (ETN).