Hong Kong Gives HKVAX Green Light for Virtual Asset Trading

The Japanese government is moving to modernize municipal finance through blockchain technology, though the timeline for much-anticipated cryptocurrency tax reforms appears to be drifting further into the future. Municipal bonds as security tokensAccording to a Dec. 23 Nikkei report cited by CoinDesk Japan, policymakers decided to begin preparing to issue local government bonds as security tokens. The government aims to submit the necessary legislation during the ordinary Diet session in 2026. Concrete measures, shaped by requests from local municipalities, are expected to be finalized ahead of next year. Advocates say that issuing bonds as blockchain-based security tokens would modernize local government finance by reducing friction in issuance and settlement and enabling real-time tracking of investor data.Photo by Luke Stackpoole on UnsplashCrypto tax reform seen as taking timeWhile the digitization of bonds progresses, the schedule for easing the tax burden on crypto investors is reportedly facing setbacks. CoinPost reported that, according to sources, the transition to a separate tax on crypto gains is now expected to take place in January 2028, a delay from the initially envisioned target of January 2027. The legislative groundwork is still slated for the 2026 Diet session, where amendments bringing crypto assets under the Financial Instruments and Exchange Act (FIEA) will be deliberated. However, the current cautious policy approach prioritizes investor protection and adjustments to the tax reporting framework, making a delay in implementation more likely. The proposed amendments address the steep tax liabilities currently faced by domestic investors. Under Japan’s current system, crypto gains are treated as miscellaneous income, taxed comprehensively with salary and other earnings at rates that can reach roughly 55% when including local taxes. The plan, which the ruling coalition has been coordinating, aims to align crypto taxation with that of stocks and forex trading. It would introduce a flat 20% separate tax rate and allow loss offsets and carryforwards of up to three years, bringing crypto closer to other financial assets. It would also ease tax filing by potentially adopting a framework similar to the designated accounts used in Japan’s securities market, reducing the reporting burden on digital asset investors. The slow pace of these regulatory changes has drawn criticism from the private sector. Tomoya Asakura, CEO of SBI Global Asset Management, a subsidiary of SBI Holdings, took to the social media platform X to voice concerns about the pace of reform. Asakura characterized the process as "extremely slow," warning that the lag places Japan behind jurisdictions such as the U.S., Asia, and the Middle East. He argued that continued delays would further impede domestic initiatives in Web3 and digital finance. Bybit to pull out next yearAmid this shifting regulatory landscape, foreign entities are adjusting their operations. Dubai-based crypto exchange Bybit, which is not registered with Japan’s Financial Services Agency, announced on Dec. 22 it will phase out services for Japanese users to remain compliant with local rules. The exchange has stopped onboarding Japanese residents or nationals since 12:00 p.m. UTC on Oct. 31, and accounts held by customers in Japan will be gradually restricted starting next year. 

Daegu to host first-ever metaverse expo on Nov. 8South Korea’s Daegu Metropolitan City is set to host its first metaverse expo called the “ABB Big Show” from Wednesday to Friday (local time) at the EXCO convention center as part of efforts to stimulate and promote the metaverse industry — a key industry that was notably earmarked as a growth engine in last year’s eighth nationwide local elections. Despite more recent concerns about the sector due to worsening domestic and international economic conditions and reduced investments, the global market continues to recognize its high potential, as divulged at CES 2023, one of the biggest tech events in the world. Daegu has thus stepped up to promote the latest metaverse technologies and content across diverse industrial, administrative and educational services.“The metaverse industry represents a new field that symbolizes a digital era with infinite opportunities and possibilities,” said Choi Woon-baek, Director of the city’s Office for Future Innovation Growth. “I hope that this event will be a meaningful time for citizens to experience firsthand the advanced metaverse technology that is poised to change our future lives.”Photo by GuerrillaBuzz on UnsplashA confluence of metaverse innovation and technologyUnder the theme of exploring the link between reality and the virtual realm, the ABB Big Show — ABB is an acronym for AI, blockchain and big data — will be hosted by Daegu and jointly organized by the Daegu Gyeongbuk Metaverse Industry Association, the MICE Industry Research Institute and local news outlet Yeongnam Ilbo. It will also be held simultaneously with this year’s ICT Convergence Expo Korea and the ABB Hackathon. Of the 156 total companies that are scheduled to participate in the shared event, 32 of them are metaverse companies, the city said.These companies are set to introduce various cutting-edge metaverse technologies through hands-on activities and exhibitions, many of which come with prizes and special events for visitors. In particular, creative media content company YDesign Lab plans to set up a futuristic Instagram photo zone for visitors using immersive anamorphic technology, while mixed reality (MR) content provider DG Entertainment will showcase its motion recognition technology.Other individual guests plan to give lectures on the prospects of Korea’s metaverse industry and propose related policies to push these prospects in a promising direction. The second day of the expo will host a conference featuring Ahn Jong-bae, President of Hansei University’s Future Creativity Campus, who will deliver a keynote speech on the role of artificial intelligence (AI) in changing the future and the metaverse industry.Daegu’s ambitious projectsDaegu is also pursuing several other big-budget projects to foster its regional metaverse ecosystem, including the construction of a metaverse hub in the greater metropolitan area that will serve to support related businesses and cultivate metaverse experts. Also on the city’s agenda is the development of a “Daegu World” metaverse that leverages regional intellectual property in the realms of tourism, education and culture to give citizens unique virtual experiences.

Thailand’s Incoming Prime Minister Signals Crypto EmbraceIn a recent parliamentary decision on August 22, real estate magnate Srettha Thavisin emerged as Thailand’s forthcoming Prime Minister. Thavisin, acclaimed for his prior role as the CEO of Sansiri — one of Thailand’s major real estate developers — has a history entwined with the cryptocurrency sector, hinting at potential ramifications for the nation’s crypto landscape.Photo by Markus Winkler on UnsplashParliamentary selection winThe appointment came under the banner of the Pheu Thai Party, with Thavisin securing 482 votes out of 747 in the parliamentary endorsement.Thavisin’s ascent to power could potentially herald a significant shift in Thailand’s approach to cryptocurrencies, leveraging his involvement with Sansiri’s foray into the digital asset domain. Departing from his role as Sansiri’s CEO in April, Thavisin relinquished his 4.4% stake in the company, setting the stage for him to pursue a career in politics.Crypto firm investmentSansiri, under Thavisin’s leadership, undertook active participation in the country’s digital asset arena. Notably, in 2021, the company participated in a substantial $225 million fundraising round for XSpring Capital, a crypto-friendly investment management firm. This strategic partnership paved the way for XSpring to launch a fully integrated cryptocurrency trading platform in 2022, with aspirations to establish a presence among the top crypto exchange companies by 2025.Thavisin’s impact on the crypto sector goes beyond investment. His company also introduced the “SiriHub Token” via XSpring in 2022, presenting a real estate-backed initial coin offering (ICO) that extended 240 million tokens to the public. This duality of involvement from crypto firm investment to token issuance, demonstrates that the new Thai premier has not been afraid to get involved with crypto innovation at an early stage.Crypto airdrop proposalIt appears that Thavisin’s affinity for cryptocurrency transcends corporate endeavors, as his political affiliation with the Pheu Thai Party, which he joined in November 2022, introduced a novel proposition. The party proposed disbursing 10,000 Thai baht (approximately $300) to citizens, executed through digital currency transactions. The synergy between his cryptocurrency background and this proposal raises questions about the potential influence of his past on Thailand’s future crypto policies.As Thavisin’s administration prepares to assume office by the end of September, the extent to which his crypto engagement shapes the nation’s policies remains a topic of speculation. However, the confluence of his real estate expertise and cryptocurrency ventures offers a unique blend of experiences that might foster innovative approaches.Notably, Thavisin’s journey isn’t the sole instance of Thailand’s government engaging with the crypto industry. Earlier in 2023, Thailand’s cabinet introduced tax breaks for companies issuing investment tokens. These measures, announced in March, aim to generate 128 billion baht ($3.7 billion) from investment token offerings over the next two years.Political importanceThavisin’s perceived embrace of cryptocurrency in Thailand comes at a time when crypto and blockchain innovation is being supported by political candidates in multiple jurisdictions. In the United States, the Republican Party is holding a debate on Wednesday between its eight candidates for the presidential nomination, with several of them being pro-crypto.On the Democratic Party side, Robert F. Kennedy is pro-bitcoin, having recently stated that bitcoin is an exercise in extending civil liberty. Meanwhile, in Argentina, Javier Milei, a libertarian pro-bitcoin candidate, topped the poll in the country’s recent presidential primary.