Surge in Hong Kong Crypto License Applications from Mainland-Linked Brokers

Samil PwC seminar informs companies about crypto accounting amid shifting Korean regulationsWith the South Korean government anticipated to finalize a plan aimed at enhancing cryptocurrency transparency within this year, companies are preparing to swiftly respond to the changing accounting landscape.A seminar held on Thursday (local time) in Seoul by Samil PwC, the Korean member firm of the London-headquartered accounting firm PricewaterhouseCoopers, exemplifies these efforts. This meeting featured presentations from Samil staff, focusing on the implications of the new upcoming crypto accounting guidelines for businesses and exploring strategies for effective response.Photo by Kelly Sikkema on UnsplashGovt to soon finalize crypto accounting guidelinesDuring the meeting, an official from Samil PwC said that the Virtual Asset User Protection Act is set to be implemented next July. The accounting expert also noted that the Financial Services Commission’s guidelines on virtual asset accounting and the requirement for disclosing virtual assets in financial statement annotations, issued this July, are expected to be finalized shortly.From accounting to internal controlsAs the first speaker of the seminar, Lee Seung-wook, Partner at Samil PwC, delivered a presentation on the management of cryptocurrency accounting and the disclosure of cryptocurrency holdings within financial statement annotations. Lee classified companies into three categories: crypto issuers, crypto holders or investors and companies operating crypto businesses. He provided detailed guidance on what each category of companies should consider in their approach to managing and disclosing virtual assets.In particular, Lee drew attention by clearly explaining the accounting approaches companies should adopt in various scenarios, such as when offering cryptocurrency as an incentive to employees or airdropping cryptocurrency to customers for marketing purposes.Following this, Partner Jo Sung-jae delved into enhancing internal controls related to virtual assets. Drawing from PwC’s own framework, he presented practical methods to mitigate risks associated with cryptocurrencies, such as the loss of private keys, vault breaches and embezzlement.The seminar also covered the topic of Information Technology General Controls (ITGCs). Partner Lee Jeong-mi made a comparison between ITGCs in traditional business environments and those specific to the cryptocurrency industry, highlighting the unique considerations that crypto businesses need to be aware of. Furthermore, Managing Director Lee Eun-young discussed the tax implications related to cryptocurrency.Anticipation of uncertainty reductionLee Jae-hyuk, who oversees the cryptocurrency division at PwC and served as the overall manager of the seminar, expressed optimism that the government-led guidelines would reduce the uncertainty surrounding cryptocurrency accounting. He also conveyed his hope that the seminar would provide attendees with the opportunity to consider the influence of digital assets on corporate accounting, internal controls and tax implications, as well as their potential impact on future industry trends.Samil PwC stands out as one of the first Korean accounting firms to establish a dedicated blockchain division within its Digital Innovation Lab, incorporating a team of developers. Leveraging its accumulated expertise in this field, Samil PwC offers a broad range of services, including internal controls consultations, accounting audits, financial advice and tax filing. Further emphasizing its commitment to the evolving field of cryptocurrency, in June of this year, Samil PwC collaborated with the Korean Accounting Association (KAA) to conduct research focused on cryptocurrency accounting.

Crypto.com Scores MPI License in SingaporeIn a significant move for the Web3 industry, the Monetary Authority of Singapore (MAS) has granted online crypto trading platform, Crypto.com, a Major Payment Institution (MPI) license. This regulatory development showcases Singapore’s commitment to welcoming innovation and embracing the potential of the Web3 sector.Photo by Timo Volz on PexelsLicensing milestoneCrypto.com made the exciting announcement on Thursday, revealing that it has received the MPI license from the MAS, the country’s central bank and financial regulator. With this license in hand, Crypto.com can now provide its Digital Payment Token (DPT) services to residents of Singapore.This achievement follows the in-principle approvals granted to Crypto.com by the MAS in June of the previous year, further highlighting the company’s adherence to regulatory standards and its dedication to operating within the guidelines set by financial authorities.Community reactionThe news of the license has garnered positive reactions within the crypto community. Many members see the Singaporean government’s decision as a significant endorsement of the Web3 industry. ‘Aravind,’ a Twitter user, expressed this sentiment, stating, “Singapore government giving out a license is itself a massive plus for the Web3 Industry,” adding that it's probable the process to obtain the license has been hard fought, and likely two years in the making.Interestingly, another community member drew comparisons between Crypto.com’s successes and the challenges faced by global crypto exchange, Binance. While Binance has encountered difficulties in various jurisdictions, Crypto.com has been praised for its steady progress and forward-looking approach.Yet another Twitter user chimed in along similar lines, stating: “Whilst Binance seems to be losing ground, Crypto.com seems to be slowly doing things right and building for the future.”Binance has recently faced setbacks, such as its diminishing presence in the Australian and Canadian markets and trading restrictions imposed in certain European countries. Reports have even surfaced suggesting that Binance plans to lay off 20% of its staff in June.However, it’s important to note that Binance has not given up, as evidenced by its recent expansion into Thailand, where it established a regulatory-compliant platform. The exchange has also taken steps to ensure compliance in Japan through the creation of another regulatory-compliant platform.Additional licensesCrypto.com has set up its headquarters in Singapore, and it is in good company there with leading crypto firms Kraken and Coinbase also maintaining offices in the city state. The company has taken a truly global strategy, having marketed heavily in recent years. It maintains offices in nine other locations, including Miami, Dublin, London, Seoul, Malta, Sofia, Hong Kong and Shenzhen, as well as Kadıköy in Turkey.The crypto trading platform has received a Minimal Viable Product (MVP) preparatory license from the Virtual Assets Regulatory Authority (VARA) in Dubai, alongside firms like Komainu, Hex Trust, and GC Exchange. The company has also successfully pursued digital asset licensing in France, Australia, and the United Kingdom.Crypto.com’s acquisition of the MPI license in Singapore marks a significant milestone for the company and the broader Web3 industry. With Singapore embracing innovation and offering a favorable regulatory environment, Crypto.com is well-positioned to continue its growth and contribute to the advancement of the digital payment token ecosystem.

Digital wallet D’CENT and Astar Network team up to bring scalable wallet services to usersSouth Korean digital hardware wallet service D’CENT has partnered with Japan’s leading blockchain project, Astar Network, to offer users enhanced wallet scalability and seamless asset management, according to an official Medium post on Friday (local time). D’CENT will be integrated into Astar’s blockchain network.Photo by Shubham’s Web3 on UnsplashDriving blockchain innovationAstar Network is a layer 1 blockchain that supports Ethereum virtual machine (EVM) and WebAssembly (Wasm) smart contracts. Tailored to function as a centralized smart contract hub within the Polkadot blockchain ecosystem, it serves as a comprehensive platform for developers to create and deploy decentralized applications (dApps).Astar is revolutionizing blockchain for millions of users worldwide and is actively working with major South Korean companies to achieve this goal. Its newest partner, D’CENT Wallet, which currently provides cold wallet services for hundreds of users across the world, offers an easy-to-use, secure solution for managing digital assets. In particular, it boasts a convenient user experience (UX) that employs fingerprint authentication. Through the new partnership, D’CENT will become the first wallet to support Astar-zkEVM, Astar’s layer 2 scaling solution.Enhancing accessibility and interoperabilityThe two companies plan to work together to bring D’CENT’s unique services to Astar’s Japanese and global user base. Through its integration into Astar Network, the wallet now supports over 60 blockchain networks, 29 of which are EVM-compatible. Users can also store, manage and trade their ASTR tokens — Astar’s native token. This effectively removes the complicated process of managing assets across multiple blockchains.Beyond its role in asset management, the D’CENT wallet also serves as a gateway to the Polkadot ecosystem, where wallet holders can gain access to a plethora of dApps.Both D’CENT and Astar expect that their collaboration will contribute to shaping the future of blockchain transactions and fostering a more integrated blockchain ecosystem.