BitMEX Co-Founder Forecasts $750K to $1 Million Bitcoin Price by 2026

Lee Bok-hyun, the governor of South Korea’s Financial Supervisory Service (FSS), is set to have a meeting with Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), in May. The purpose of their meeting is to discuss whether to classify non-fungible tokens (NFTs) as virtual assets. Currently, NFTs are not seen as virtual assets in Korea, but there is a high likelihood of them being acknowledged as such following the meeting in May, local financial media outlet Edaily reported.Photo by Andrey Metelev on UnsplashLack of definition for NFTsAn NFT is a digital certificate of authenticity that is not fungible or replicable. NFTs tokenize content or assets of various types – from images, music, videos, games and artworks to real-estates – by assigning a unique token ID to them. Many see 2018 as the year NFT technology was first introduced.  Despite its wide range of applications, no legal definition has been made for NFTs. Some view NFTs as technology, and others as virtual assets or securities. The Korean government decided not to recognize NFTs as virtual assets under the Virtual Asset Protection Act (Virtual Asset Act), effective in July. Behind this decision is a perception that NFTs are less likely to pose significant risks to the market, as a large portion of NFTs are now traded by collectors seeking to expand their private collections.  However, NFTs are increasingly seen as speculative destinations by many investors over time, as prices of virtual assets including BTC surge. This shift backs the local movement to recognize NFTs as well as spot bitcoin ETFs as virtual assets. Opposition from NFT businessesBlockchain industry insiders say defining NFTs is of utmost importance, noting that classifying NFTs as virtual assets headfirst could deal a heavy blow to businesses in this sector. One finance insider mentioned that defining NFTs comes down to understanding their purposes and how they are utilized. If NFTs are primarily used for speculative purposes or as currency, they could be recognized as virtual assets, the person said.  The biggest resistance is coming from NFT-related businesses. That is because recognizing NFTs as virtual assets would require these businesses to obtain a virtual asset service provider (VASP) license from the financial authority, which takes significant costs and workforce in the process. A CEO of a blockchain startup, who preferred to remain anonymous, expressed concerns about the possibility of NFTs becoming virtual assets, saying that such recognition would enable NFT transaction tracing, potentially leading to severe violations of human rights. While many industry insiders expect that the financial authorities will bring NFTs under the forthcoming Virtual Asset Act, the FSS stated that no decisions have been made regarding details of the upcoming meeting with the U.S. SEC. 

South Korea Introduces ABLE Alliance for Blockchain Advancement and CollaborationThe South Korean Ministry of Science and ICT (MSIT) celebrated the launch of the Alliance of Blockchain Leading Digital Economy (ABLE) yesterday, according to its press release. The ministry convened a meeting in Seoul to discuss the government’s digital transformation agenda with the alliance’s members.Photo by Shubham Dhage on UnsplashStartups’ challengesIn the rapidly evolving blockchain technology landscape, Korean startup vendors have encountered challenges in finding clients for their products. Moreover, they often face the problem of their services or technology becoming outdated by the time they are ready to be brought to market. To address these issues, MIST and the Korea Internet and Security Agency (KISA) took the initiative to establish the ABLE alliance.64 ABLE membersThe ABLE alliance consists of 64 entities, categorized into three distinct groups: clients, vendors, and advisors. Prominent clients include financial institutions such as the Bank of Korea, KB Kookmin Bank, and Hana Bank. Notable vendors within the alliance include Lambda256, a blockchain solution provider; AhnLab Blockchain Company; and Raon Secure, a mobile security solution. Serving as advisors are well-known participants like SK Securities; NH Investment Securities; and Nice Information Service, a credit bureau and corporate intelligence data provider.Objectives and rolesThe primary objective of the ABLE alliance is to promote effective communication among its entities, fostering a better understanding of each other’s requirements for blockchain projects. ABLE will serve as a centralized point of contact for handling various industry suggestions.To achieve its goals, ABLE will operate an advisory body that offers consultations on diverse areas such as attracting investments, expanding into overseas markets, formulating regulations and policies, and facilitating networking within the technology sector. The alliance will also provide opportunities for its members to showcase and explain their products and technologies to one another. Regular meetings will be conducted to share industry trends and policy developments, ensuring seamless communication among the alliance members.

Japan mulls unrealized crypto gains tax exemptionJapanese lawmakers are currently in discussions about a proposal that could exempt companies from paying taxes on unrealized cryptocurrency gains.Photo by Joshua Tan on UnsplashReforming aggressive crypto tax policyThe plan is anticipated to be incorporated into the fiscal 2024 tax reform agenda, according to a report published by Nikkei Asia on Wednesday.Up until now, Japan has had some of the most aggressive tax rates where cryptocurrencies are concerned when compared internationally. At the moment, corporations have to pay a 30% tax on crypto holdings regardless of whether they’ve sold those digital assets or not. The policy has been criticized broadly by crypto sector participants in Japan. It is seen as inequitable, considering that Japan taxes profits from stocks at a flat 20%.Corporate tax exemptionThe proposal, currently under deliberation by Japan’s ruling coalition, specifically targets Japanese companies holding digital assets for purposes other than short-term trading. If approved, these firms may be granted an exemption from corporate tax, contingent on mark-to-market valuations at the close of the fiscal year.Mark-to-market valuations involve assessing the fair values of assets with periodic fluctuations, such as cryptocurrencies. This exemption is expected to benefit various entities, including venture capital (VC) firms, non-fungible token (NFT) businesses and other blockchain companies holding cryptocurrencies for payment purposes. Additionally, crypto issuers, who are also crypto holders, would not be subjected to these taxes.Policymakers from the Liberal Democratic Party and the ruling coalition partner Komeito engaged in discussions on Tuesday regarding these potential tax exemptions.Bringing clarity to crypto taxationThis move is part of Japan’s ongoing efforts to bring clarity to crypto taxation. In June, the National Tax Agency clarified that crypto issuers in the country would not be liable to pay capital gains taxes on unrealized gains, fostering a more conducive environment for crypto-related businesses.Japan has been actively reviewing its crypto tax policies since last year, aiming to incentivize companies to stay in the country. This initiative follows the departure of several startups due to heavy tax burdens.Industry reactionWith news of this potential Japanese crypto tax reform breaking, crypto community members haven’t wasted any time in providing their thoughts. Taking to the X social media platform, Sota Watanabe, the founder of the Astar Network multichain dApp hub, wrote:”Good move. This is what I requested multiple times to the government over years. Once this issue is solved this year, all companies, especially big enterprises, can hodl crypto like ASTR much easier. Japan weighs ending tax on some corporate crypto holdings.”Former Goldman Sachs Portfolio Manager and Web3 investor, Steve Lee, said that this is “another big move in Japan that would help enterprises push their crypto business.”The Financial Services Agency (FSA), Japan’s top financial regulator, recently submitted legislation-change requests to the government, seeking alterations to the taxation of domestic crypto firms. Critics argue that the existing rule has impeded innovation in the crypto-asset and blockchain sectors, placing an undue burden on companies.On Oct. 16, major businesses in Japan, through the Japan Association of New Economy (JANE), urged the government to implement crypto tax reforms in 2024. Their appeal emphasizes the potential for reduced tax rates to stimulate growth and increase tax revenue.