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Korean government to seize crypto for unpaid child supportStarting next year, the South Korean government is set to begin seizing virtual assets such as bitcoin from parents who are obligated to pay child support but fail to do so.Photo by Bonnie Kittle on UnsplashKorea Credit Bureau to assist in crypto seizuresAccording to a report by local news outlet Dailian, the Child Support Agency (CSA) of the Korean Institute for Healthy Family (KIHF), which operates under the Ministry of Gender Equality and Family, announced on Wednesday (local time) a partnership with the Korea Credit Bureau (KCB). This collaboration will empower the agency to confiscate virtual assets from parents who are delinquent in paying child support.Since 2015, the CSA has been offering emergency child support for approximately a year to low-income single parents who have not received payments from non-custodial parents. In this process, the agency initially pays the child support on behalf of the non-custodial parents and subsequently pursues reimbursement from them. This system ensures that the immediate needs of the children are met while still holding non-custodial parents accountable for their financial responsibilities.Before July 2022, the CSA was required to initiate lawsuits against non-compliant parents to recover child support payments. However, since then, the agency has been authorized to directly pursue reimbursements by following the compulsory national tax collection process.Challenges in enforcing child support paymentsDespite these improved measures, the government still encountered challenges in enforcing child support payments. Some non-compliant parents have resorted to earning income under other people’s names or deliberately concealing their properties, including virtual assets, to evade their child support obligations.Against this backdrop, the recent partnership between the CSA and the KCB is a strategic move to enhance the enforcement of child support payments. This collaboration will grant the CSA access to KCB’s virtual asset management system. With this access, the CSA will be able to efficiently search for and seize the cryptocurrency holdings of non-compliant parents.Jeon Joo-won, the head of the CSA, underlined the significance of the agency’s collaboration with the KCB. She pointed out that utilizing KCB’s financial transaction data will improve the CSA’s enforcement of child support payments. Jeon also emphasized that the mutual support between the two agencies will serve as a foundation for promoting social values, highlighting the broader societal impact of their combined efforts to ensure responsible child support compliance.

Korean crypto firms relocating for cheaper rent amid prolonged crypto winterAs the prolonged crypto winter continues to affect the industry, blockchain and cryptocurrency firms in South Korea are under pressure to economize. Faced with a deteriorating business and investment climate, numerous companies are reducing their office space and relocating to areas with cheaper rent, according to a Wednesday (local time) report by local media outlet Bizwatch.Photo by Nastuh Abootalebi on UnsplashReducing operating costsBizwatch reported, citing industry sources, that Parameta (previously Iconloop), a blockchain enterprise, has relocated its headquarters from Seoul’s upscale Signature Towers to a more economical shared office space this year. This strategic move is interpreted as an effort to slash operating costs by choosing a location with significantly lower rental expenses. A Parameta representative confirmed that the relocation was part of measures to reduce costs.Binance-backed Streami, which runs the Gopax cryptocurrency exchange, is also reportedly contemplating an office relocation after downsizing its staff. The company’s workforce has dwindled from over 100 employees earlier in the year to approximately 60 by September. A Streami spokesperson has indicated that they have yet to reach a decision regarding the relocation. Streami’s situation is particularly significant due to its ongoing challenges in securing approval from financial regulators for changes to its executive representatives since Binance acquired a majority stake. Recently, Streami appointed a new CEO from the domestic tech firm CityLabs, which has also purchased an 8.55% stake in Streami and intends to further increase its investment in the exchange operator.Similarly, Korea Digital Exchange, the operator of cryptocurrency-only exchange Flybit, has listed for sale one of its two floors of office space in Seoul’s Seocho district. This move comes nearly a year and eight months after the company expanded into the current premises.Changes in workforce sizesBefore the crypto winter, when the Korean crypto market witnessed unprecedented growth, numerous companies expanded their offices to make room for the growing workforce, bolstered by rising revenues. For instance, Dunamu, which runs Upbit — Korea’s largest crypto exchange — garnered attention for acquiring pricey real estate in Gangnam to construct a new office.However, the boom was short-lived. With the onset of the crypto downturn, numerous companies found themselves having to shut down. Blockchain technology firms are facing similar challenges, with many developers steering away from the sector due to persisting market instability. For many of these firms, the workforce has diminished as they’ve either undergone restructuring or struggled to recruit replacements for departing employees.An industry insider remarked that reducing operating costs is a logical step for companies facing a lack of investment and revenue. They noted that this only applies to those resilient enough to weather the hardship, adding that many cryptocurrency-only exchanges are likely to shut down completely in these challenging conditions.In fact, Cashierest, a crypto-only exchange, recently announced the cease of operations. Concerns about the company had been growing after staff layoffs and the departure of its CEO in July. A thorough analysis by the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) found that, of the 21 Korean crypto-only exchanges, 18 are operating with negative shareholder equity as of the first half of this year. Moreover, 10 did not earn any revenue from transaction fees during the same period.Crypto-only exchanges typically see lower trading volumes as they cannot facilitate trades in Korean won. In South Korea, only five trading platforms — Upbit, Bithumb, Coinone, Korbit and Gopax — are officially registered with the financial regulator to conduct fiat-to-crypto transactions.

Thailand’s Securities and Exchange Commission (SEC), the Southeast Asian nation’s securities regulator, is believed to be considering moving towards approving spot Bitcoin exchange-traded fund (ETF) products.  In an interview with Bloomberg, the Thai SEC’s Secretary-General, Pornanong Budsaratragoon, said that the agency is weighing up whether to allow individual investors and institutions to access spot Bitcoin ETFs. Budsaratragoon stated: “We have to adapt and ensure that our investors have more options in crypto assets with proper protection.”Photo by Photo By: Kaboompics.com on PexelsMoving along with global crypto adoptionJanuary 10 marked the first anniversary of the approval of spot Bitcoin ETFs in the United States. Given that the U.S. is home to the world’s largest capital markets, that decision has had an impact internationally. That reality is borne out by one of Budsaratragoon’s comments. She stated: “Like it or not, we have to move along with more adoption of cryptocurrencies worldwide.” While the SEC Secretary-General’s comment suggests that she feels a compulsion to move forward in line with developments elsewhere, that wasn’t the agency’s position in January 2024 following spot Bitcoin ETF approval in the U.S.  Shortly afterwards, the regulator, alongside its regional counterpart in Singapore, outlined that it had no plans to approve the product in Thailand, stating: "The SEC has been following these developments closely but we do not have a policy to allow spot Bitcoin ETFs to be established in Thailand for the time being.” Initial access to overseas productsIn March of last year, the agency had warmed to the Bitcoin ETF product offering to a greater extent, by approving access to such products listed overseas to high-net-worth individuals and institutions. Off the back of that approval, One Asset Management (ONEAM) launched a fund of funds in June 2024, enabling Thai investors to gain exposure to Bitcoin ETFs which had been publicly listed overseas. Back in October, Nirun Fuwattananukul, CEO of Binance Thailand, stated in an opinion piece published by the Bangkok Post that he felt that the Thai crypto market was moving from retail towards a focus on the institutions. He stated:“By allowing more institutional funds to participate, the SEC is enabling a diverse range of investment strategies and helping digital assets gain broader acceptance in the mainstream.” Fuwattananukul suggested that the local regulator had made some changes on Oct. 9, paving the way for institutional-grade mutual and private funds to invest in crypto products. The approval of locally listed Bitcoin ETF products would broaden investor access to digital assets in Thailand, particularly in relation to institutional investors, which is in line with the thinking of the Binance executive. Earlier this month, Thailand’s Deputy Prime Minister, Pichai Chunhavajira, announced that a pilot program was being launched to help foreign tourists pay for goods and services using crypto within the Thai resort city of Phuket.  Meanwhile, former Thai Prime Minister Thaksin Shinawatra expressed a bullish view on crypto in a speech he made in Bangkok last week. Shinawatra called on the country’s institutions to be more open to cryptocurrency, while citing regulatory developments in the U.S. relative to the emerging asset class.