Sumitomo Trade Document Network Partnership Adds Chainlink Involvement

Klaytn Foundation Denies Embezzlement Allegations Involving KLAYThe Klaytn Foundation, the group behind virtual asset KLAY, has denied allegations against the former chairman of Kakao, the South Korean messaging app developer, as well as executives from its subsidiaries, according to local news outlet Digital Asset. These allegations accuse them of embezzlement involving the cryptocurrency.A formal complaint detailing these allegations was submitted on Wednesday by Economic Democracy 21, a civic group, to the joint crypto-crime investigation division of the Seoul Southern District Prosecutors’ Office.Photo by alleksana on PexelsKlaytn’s responseIn response, the Klaytn Foundation has characterized the allegations as arbitrary and unfounded. The foundation is taking the matter seriously and is planning to conduct a comprehensive fact-check to actively address the claims.Civic group’s claimsEconomic Democracy 21 contends that select insiders at Kakao and its subsidiaries have illicitly accumulated hundreds of billions of Korean won. According to the group, this was done by converting KLAY tokens into cash under the pretense of investment and compensation.Ongoing commitmentIn the midst of this legal dispute, the Klaytn Foundation reaffirmed Klaytn’s steadfast dedication to advancing its scheduled initiatives in collaboration with its ecosystem partners.

Korea Joins OECD’s CARF initiative to enhance crypto tax complianceThe South Korean Ministry of Economy and Finance issued a press release to declare the country’s involvement in the Crypto-Asset Reporting Framework (CARF). This program, developed by the Organization for Economic Co-operation and Development (OECD), is designed to promote tax compliance and combat tax evasion in the realm of cryptocurrency. The initiative brings together 48 countries and jurisdictions, such as France, Germany, Japan, the United Kingdom and the United States.Photo by Nataliya Vaitkevich on PexelsTarget year of 2027In the joint statement released on Nov. 10, the participants of the CARF expressed their commitment to its widespread and timely implementation, aiming to enhance the effectiveness of the regime. They plan to align their domestic laws and enforce agreements by 2027, the year targeted by the OECD for exchanging relevant information. The statement also encouraged other jurisdictions to participate in this global effort.Updating laws and activating agreementsKorea’s commitment to international cooperation, as indicated in the joint statement, shows its intention to update domestic laws and activate exchange agreements. This preparation will pave the way for the exchange of crypto-asset transaction information to commence in 2027, adhering to the OECD’s proposed timeline. Such a step is anticipated to significantly contribute to the broad implementation of the CARF. The Economy Ministry stated that Korea is committed to ongoing participation in international efforts aimed at preventing tax evasion and enhancing tax transparency.In September, during a tax administration forum in Seoul, experts suggested that Korea’s potential participation in the OECD’s CARF would require more than just legislative amendments. They highlighted the necessity for Korea to develop a cooperative system involving both virtual asset service providers (VASPs) and regulatory authorities, explaining that this approach would ensure a smooth and effective implementation of the CARF in Korea.

Hong Kong regulators consider opening up crypto ETFs to retailHong Kong regulators are now exploring the possibility of allowing retail investors to participate in spot crypto exchange-traded funds (ETFs).The CEO of Hong Kong’s Securities and Futures Commission (SFC), Julia Leung, was cited by Bloomberg on Sunday as having indicated that provided that the necessary regulatory approvals and checks are in place, the regulator may be open to the notion of retail participation where spot crypto ETFs are concerned. Leung emphasized the regulator’s openness to innovative technology that enhances efficiency as long as it addresses potential new risks.Photo by Markus Winkler on Pixabay‘Happy to give it a try’She stated: “We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to give it a try as long as new risks are addressed. Our approach is consistent regardless of the asset.”While both the United States and Hong Kong currently permit futures-based cryptocurrency exchange-traded funds (ETFs), the adoption of such instruments has been relatively modest in comparison to the broader fund industry.In Hong Kong, there are currently ETF listings for products like Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures, with a total combined asset value of approximately $65 million. In June, Hong Kong’s largest ETF manager, Hang Seng, suggested that it too was considering a crypto product offering.In accordance with the SFC’s digital asset regulations, individual investors already have the opportunity to trade prominent cryptocurrencies like Bitcoin and Ether on licensed cryptocurrency exchanges since June 1. Presently, BC Technology Group Ltd.’s OSL and HashKey Exchange are the only platforms in Hong Kong with permits for cryptocurrency trading. Additionally, there are expectations that mandatory regulations concerning stablecoins will be introduced over the course of the next year.Prioritizing investor protectionLeung expressed the regulator’s cautious approach, stating:“As the crypto ecosystem evolves step-by-step to the point where we’re comfortable, then we’re happy to open up more access to the wider investing public.”Notably, Hong Kong also recently unveiled its Web3 plans, highlighting its commitment to embracing blockchain and decentralized technologies.Hong Kong introduced a specialized regulatory framework for virtual assets in June which are designed to attract businesses while prioritizing investor protection. That need to protect consumers has been underscored recently by the alleged fraud that has subsequently been uncovered involving HK$1.6 billion ($204 million) at the unlicensed JPEX cryptocurrency exchange in the city.Market reactionThe significance of such a move isn’t lost on crypto market participants. Taking to X, one wrote: “Seismic shift. Hong Kong’s play could reshape the Asian crypto landscape. #Bitcoin ETFs? A strategic move to anchor HK as the digital nexus of Asia.” Another claimed that this “might redefine the crypto landscape and fuel the next bull market.”A report published by the Hong Kong Stock Exchange in April found that crypto ETFs have the potential to play a significant part in the next phase of digital asset innovation in Asia.Leung emphasized the importance of a strong and comprehensive regulatory structure, highlighting the SFC's efforts to enhance transparency in processing license applications for virtual asset exchanges.Moreover, the Hong Kong Monetary Authority (HKMA), the Chinese autonomous territory’s central bank, is actively exploring the possibility of offering guidance to banks regarding the provision of digital asset custodial services. These services are considered vital for nurturing the growth of a digital asset ecosystem and ensuring investor security.