Crypto Trading Surges in South Korea While Global Trends Decline

Korea Joins OECD’s CARF initiative to enhance crypto tax complianceThe South Korean Ministry of Economy and Finance issued a press release to declare the country’s involvement in the Crypto-Asset Reporting Framework (CARF). This program, developed by the Organization for Economic Co-operation and Development (OECD), is designed to promote tax compliance and combat tax evasion in the realm of cryptocurrency. The initiative brings together 48 countries and jurisdictions, such as France, Germany, Japan, the United Kingdom and the United States.Photo by Nataliya Vaitkevich on PexelsTarget year of 2027In the joint statement released on Nov. 10, the participants of the CARF expressed their commitment to its widespread and timely implementation, aiming to enhance the effectiveness of the regime. They plan to align their domestic laws and enforce agreements by 2027, the year targeted by the OECD for exchanging relevant information. The statement also encouraged other jurisdictions to participate in this global effort.Updating laws and activating agreementsKorea’s commitment to international cooperation, as indicated in the joint statement, shows its intention to update domestic laws and activate exchange agreements. This preparation will pave the way for the exchange of crypto-asset transaction information to commence in 2027, adhering to the OECD’s proposed timeline. Such a step is anticipated to significantly contribute to the broad implementation of the CARF. The Economy Ministry stated that Korea is committed to ongoing participation in international efforts aimed at preventing tax evasion and enhancing tax transparency.In September, during a tax administration forum in Seoul, experts suggested that Korea’s potential participation in the OECD’s CARF would require more than just legislative amendments. They highlighted the necessity for Korea to develop a cooperative system involving both virtual asset service providers (VASPs) and regulatory authorities, explaining that this approach would ensure a smooth and effective implementation of the CARF in Korea.

Seoul Govt to Hire Blockchain Expert to Enhance Administrative Services for CitizensThe Seoul Metropolitan Government is hiring a blockchain specialist in an effort to bolster its administrative services for citizens, leveraging the power of blockchain technology to provide enhanced and efficient solutions, as per local news outlet Etnews.Photo by Yu Kato on UnsplashRoles and eligibilityThe appointed blockchain specialist will participate in the development and management of blockchain-based administrative systems. The position will also involve facilitating technological cooperation between the public and private sectors, with a focus on integrating blockchain-powered platforms with cutting-edge technologies such as artificial intelligence, big data, and the Internet of Things.Interested candidates have until July 26 to submit their applications, with the successful candidate expected to be revealed in August, following document screening and interviews.To be eligible for the position, applicants must meet one of the following criteria:1. Hold a bachelor’s degree and possess at least one year of experience in related fields.2. Have three or more years of relevant experience.3. Be public servants of rank 8 or higher with a minimum of two years of relevant experience.Eligible candidates must have a proven track record in the development and operation of information systems, blockchains, and non-fungible tokens.Seoul’s blockchain initiativesThe Seoul Metropolitan Government’s current efforts to integrate blockchain technology into its administrative services include the operation of the Seoul Wallet app, a one-stop solution that enables citizens to access their identification, certificates, and credentials. The city government has plans to connect this app with other digital and healthcare platforms to create a fully integrated management system.Seoul has been at the forefront of blockchain adoption in South Korea. In 2020, it became the first Korean city to launch a blockchain-powered labor contract system, aimed at protecting the rights of temporary workers. Additionally, the city has been actively exploring various ways to leverage blockchain for online ID verification services. Such initiatives include a benefits card designed for families with two or more children, offering discounts on public facilities usage.A representative from the city government highlighted their recognition of blockchain as a key technology in the era of Web3. As a result, Seoul is seeking opportunities to introduce and support blockchain-based initiatives within its jurisdiction. The official emphasized the city’s commitment to providing safe and inclusive civil services built on blockchain technology, following a thorough assessment of their potentials and risks.

First ever cross-border settlement achieved for gold using e-CNYThe first ever cross-border settlement for precious metals using China’s central bank digital currency (CBDC), the digital yuan or e-CNY, has been successfully completed.Photo by Jingming Pan on UnsplashA year of e-CNY firstsIn October, Chinese state-owned media reported that the Shanghai Petroleum and Natural Gas Exchange (SHPGX) had been the venue for the first ever significant settlement of an oil contract using the e-CNY. Running along a commodities theme, on Wednesday a similar transaction was carried out once again with Shanghai being the venue, relative to the purchase of gold.A transaction valued at 100 million yuan ($14 million) was facilitated by the Bank of China’s Shanghai branch through the Shanghai Financial Exchange International Board. That’s according to reports from local Chinese media outlets.The Bank of China’s Shanghai branch, a key participant in the ongoing e-CNY pilot testing, orchestrated the transfer of e-CNY CBDC settlement received from overseas for the purchase of the gold. A spokesperson for the Bank of China highlighted the strategic significance of the transaction, stating:“The account will contribute financial strength to support Shanghai’s in-depth implementation of the free trade pilot zone promotion strategy and promote the quality and upgrading of the international trade center.”Oil, gold and iron oreThis achievement follows on from the Bank of China’s Hong Kong affiliate Bank of China (Hong Kong) (BOCHK) facilitating the import of iron ore to China through the e-CNY just last week. As part of that pilot trial, Baosteel Group, a customer of the Bank of China, purchased iron ore from Bao-Trans Enterprises.Further expanding its international partnerships, China signed a $400 million memorandum on CBDC cooperation with the United Arab Emirates on Dec. 1. The move underscores China’s commitment to fostering collaboration in the development and implementation of CBDCs on a global scale.Partnering with foreign banksThe Bank of China is actively collaborating with foreign institutions, including France’s BNP Paribas, to advance the development of the digital yuan CBDC.In July, Singaporean bank DBS Bank launched an e-CNY product for mainland China-based customers. Amid relentless moves to further the use of the digital currency, British banking giant Standard Chartered joined the advanced stages of pilot trials of the CBDC in November.Chinese President Xi Jinping, recognizing the pivotal role of CBDCs in cross-border trade, emphasized their importance during an address to the July 2023 Shanghai Cooperation Organisation (SCO) Summit. Subsequently, foreign banks have joined China’s ongoing CBDC trials, and Singapore announced its decision to allow Chinese tourists to utilize e-CNY for transactions within Singapore.In a related development, the official e-CNY app received an update on Tuesday. The latest version allows users to create an e-CNY wallet using their phone number, provides options to disable the wallet in case of phone loss and enables the resetting of passwords and private keys. Users can also link their personal bank accounts and debit cards to the e-CNY wallet for seamless in-wallet purchases.