Taiwan Crypto Trader Strikes it Lucky in Tax Receipt Lottery

Philippine Police Warns of Play-To-Earn DangersThe play-to-earn gaming trend has not only captured the enthusiasm of gamers but has also raised concerns among authorities, prompting a closer examination of the risks inherent in cryptocurrency gaming schemes. The Philippine National Police Anti-Cybercrime Group (PNP ACG) has issued a warning about the potential dangers associated with these enticing gaming models, shedding light on some of the hidden complexities and vulnerabilities within this developing ecosystem.Play-to-earn gaming takes on added significance in the Philippines as it was in the southeast Asian country that the first breakthrough play-to-earn game, Axie Infinity, took hold during the pandemic. Axie Infinity is a metaverse game crafted on the Ethereum blockchain, inspired by the world of Pokemon. Under its play-to-earn model, players are required to acquire a minimum of three Axie characters to embark on their gaming journey.Photo by iSawRed on UnsplashHighlighting game costsHowever, the PNP ACG has raised a red flag concerning the financial commitment demanded from players, with an upfront investment potentially reaching $300. This stands in stark contrast to the traditional gaming industry, where user expenditures tend to average around $100.The PNP ACG’s warning echoes the ethos of cautious investment practices in the crypto sphere. While the security of the underlying blockchain technology may be robust, the operational components of the gaming engines and marketplaces require careful scrutiny. By implication, just as investors are advised to thoroughly research ecosystems and founders before engaging in cryptocurrency investments, gamers must exercise the same due diligence before diving into play-to-earn platforms.BCP partnershipAs part of a broader movement towards fostering the adoption of Web3 technologies in the Philippines, the Department of Information and Communications Technology (DICT) has partnered with the Blockchain Council of the Philippines (BCP). This alliance aims to harness the potential of blockchain startups to serve the public good, reflecting a commitment to sustainable growth and innovation within the sector.It is essential to emphasize that the focus on Axie Infinity doesn’t go so far as to label it a scam. Rather, it spotlights the larger concerns surrounding market volatility and accessibility barriers encountered within certain play-to-earn crypto games. The history of Axie Infinity itself underscores the vulnerabilities faced by such platforms, as exemplified by a significant hack that led to the loss of $622 million in user funds.Iterative improvementAs the gaming and crypto industries continue to intertwine, the path ahead involves careful navigation and a shared responsibility among gamers, developers, and authorities to ensure a secure and enriching experience for all stakeholders. In the overall scheme of things, the advent of Axie Infinity, and the play-to-earn model more broadly, has been a positive development when viewed as an iterative step towards the use of blockchain in gaming.Many in the blockchain gaming space have since expressed the view that the play-to-earn model can be improved upon for the benefit of gamers and developers alike. Blockchain-based gaming developers are now concentrating on engaging gameplay rather than trying to lead primarily with an emphasis on earning through playing.

Hong Kong’s GSBN Takes Lead in Blockchain LogisticsIn recent years, the logistics industry has seen an increase in the use of blockchain technology to streamline supply chains and provide greater transparency to customers. While some major players, like Danish firm Maersk, have terminated their blockchain-based platforms, others are bullish on the long-term potential of the technology.©Pexels/Ben CheungA blockchain-based shipping platformOne such player is the Hong Kong-based Global Shipping Business Network (GSBN), a nonprofit consortium focused on blockchain trade applications. According to a report by the South China Morning Post, GSBN operates one of the world’s largest platforms as an alternative to Maersk’s TradeLens tool. Since launching its blockchain-based shipping platform in 2021, GSBN has partnered with major shipping companies and terminal operators such as Cosco, Orient Overseas Container Line, Hapag-Lloyd, Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group, and Cosco Shipping Ports.The platform, based on a permissioned blockchain with strong data governance, allows only authorized parties to contribute and consume shipping-related data. The organization believes that blockchain is a crucial logistics tool in the long term, and its adoption may take another decade.Blockchain inevitable amid continued digitizationGSBN CEO Bertrand Chen is confident in the potential of blockchain technology, saying that global trade will not continue to rely on “pen and paper” by 2032. He believes that blockchain has the potential to help the industry transform in response to supply issues triggered by events such as COVID-19.“Because of COVID-19, because you have to change the process, I think this is one of the regular use cases of blockchain” . . . “Probably that’s better than NFTs of digital art. NFTs of documents for global trade — this will be the real killer use case.”While Chen acknowledges that China has taken the lead in blockchain logistics due to its significant investment in the industry, he believes that GSBN has global ambitions and is working to attract more European shipping lines. The nonprofit even hopes to onboard Maersk one day, but Chen admits that such a scenario “may be slightly challenging.”Emerging Web3 hubHong Kong has also emerged as a major hub for Web3 and cryptocurrency, with the local government taking action to adopt clear industry regulations. Despite a blanket ban on crypto in China, some Chinese government-related firms have reportedly been growing interested in crypto investment, with state-owned firms like insurer CPIC launching crypto-related funds in early April.Blockchain technology has the potential to revolutionize global trade and supply chain management, providing greater transparency and efficiency. However, widespread adoption may still be years away, and companies will need to navigate regulatory and technical challenges to fully leverage the benefits of blockchain.While some logistics firms may have terminated their blockchain-based projects, others like GSBN remain optimistic about the potential of blockchain technology in global trade. With major shipping partners and terminal operators already onboard, GSBN has a solid foundation to build on as it continues to attract more players to its platform. As the world becomes increasingly digitized, blockchain may be a crucial tool for the logistics industry to transform and adapt to new challenges.

Taiwan Advances Crypto Regulation with Initial Reading of Digital Asset BillTaiwan has furthered its efforts on the path of digital asset regulation, as the nation’s legislature introduced a cryptocurrency bill for its inaugural reading.The “Virtual Asset Management Ordinance Draft” bill represents a significant stride toward establishing a legal framework for digital assets in the country. The proposal passed its first reading at the Taiwanese state legislature, according to published parliamentary records.Photo by Ethan Lin on UnsplashBill objectivesThe primary objectives of the bill are to define virtual assets, establish operational standards for asset operators, enhance customer protection, and make it mandatory for industry players to join relevant associations and secure regulatory permissions.Up until now, Taiwan has maintained a relatively hands-off approach to the cryptocurrency sector. Its oversight was limited to existing know-your-customer (KYC) and anti-money laundering (AML) laws. However, this stance evolved following the collapse of the cryptocurrency exchange FTX in November. The platform’s popularity among Taiwanese users, owing to favorable US dollar interest rates compared to local banks, led to increased regulatory scrutiny.A member of Taiwan’s parliament, Yung-Chang Chiang, told The Block that “after the first reading of the bill, discussions on the regulatory framework for the virtual asset industry have progressed to the next stage.” Chiang added:“We hope that the Financial Supervisory Commission can also submit their version of a draft bill to the legislature, allowing various sectors of society to further consolidate consensus during the process.”In contrast to cryptocurrency regulations in neighboring Hong Kong, Taiwan’s bill does not adopt a strong stance on derivatives or stablecoins. Nevertheless, it recognizes that derivatives linked to virtual assets possess unique characteristics, with a specific mention of perpetual contracts. This recognition opens the door for the possibility of cryptocurrency derivative-specific regulation in future drafts.Importantly, the bill does not restrict the trading of virtual assets to professional investors, which allows broader participation in the digital asset market.Auditing and segregation of fundsUnlike Japan, which mandates the use of custodians for locally licensed exchanges, the draft bill in Taiwan only necessitates the segregation of customer assets from business funds. It does not explicitly require the involvement of third-party custodians.Under this legislation, exchange operators will be obliged to commission periodic reports from accountants regarding their operations and asset management. Additionally, regulators, such as the Financial Supervisory Commission (FSC), will have the authority to conduct regular inspections of exchange internal control and audit systems.Although this initial draft does not explicitly mention “Proof of Reserves,” it does indicate that the regulator will establish standards for asset ratios after consulting with industry stakeholders, with the expectation that licensed exchanges will adhere to these standards.Fostering self regulationTaiwan’s crypto industry stakeholders have expressed their support for formal regulatory oversight. Wayne Huang, co-founder and CEO of Taipei-based fintech company XREX, recently affirmed the industry’s willingness to collaborate with the FSC in defining regulatory operations.In tandem with the establishment of a regulatory framework, regulators have indicated that they want industry stakeholders to move towards some level of self-regulation. That led nine exchange businesses to form an industry association last month.The bill’s second reading is pending, and the FSC is anticipated to provide its input and recommendations before the next phase of the legislative process.