DeSpread and Crypto Times Team Up to Bridge Blockchain Information Gap in Korea and Japan

Japan’s Financial Services Agency (FSA), a government agency and financial regulator responsible for overseeing banking, securities and exchange, has ordered both Apple and Google to remove specified unregistered crypto exchange apps from the Japanese versions of their app stores.Photo by Louie Martinez on UnsplashFive exchange apps specifiedIt is understood that the request was made at the beginning of this month, with the regulator specifically calling for the removal of the ability of Japanese consumers to download apps related to Bybit, MEXC Global, LBank Exchange, KuCoin and Bitget. In response to a query from The Block, Bitget Chief Legal Officer (CLO) Hon Ng said that the company is “aware of the issue and sincerely apologize for any inconvenience caused by the temporary removal of the Bitget app from the iOS App Store in Japan." The Bitget CLO went on to state that the company is working with Apple and regulators to resolve the matter. News of the regulator’s request emerged via a report published by Japanese financial media platform Nikkei on Feb. 7.  Apple had removed the apps from its App Store on Feb. 6. Reclassification of digital assets as securitiesA subsequent report by Nikkei on Feb. 10 suggests that the FSA is considering classifying digital assets as financial products akin to securities. The objective of the move is to protect Japanese investors as it would mean increased disclosure requirements from those that offer crypto-related investment products. Last August, FSA Commissioner Hideki Ito told Bloomberg that any decision to approve crypto-linked exchange-traded funds (ETFs) requires “careful consideration.” At the time Ito said that many people believe that digital assets “do not necessarily contribute to the wealth creation of the Japanese people in a stable and long-term manner.” The Japanese have been far more cautious in their approach to virtual assets by comparison with other Asian centers such as Hong Kong, which had approved spot Bitcoin and Ether ETFs some time ago. It appears that Japan’s FSA is wary of the volatility of cryptocurrencies and risks associated with the nascent assets. It’s understood that the FSA will announce crypto policy reforms by June 2025. Legislative amendments would then follow in the following parliamentary session in 2026. The change would mean a lifting of the current prohibition related to crypto ETFs. Another aspect likely to be reformed is taxation as it relates to crypto. It’s thought that a reduction from the existing 55% tax rate on crypto to 20% is on the cards. This is not the first occasion when a regulator has leaned on Apple and Google to cut off access to crypto exchange apps. In January 2024 Apple India blocked access to eight exchanges which had been subject of a show-cause notice from India’s Financial Intelligence Unit (FIU). Following a seven month ban, access to the Binance app was subsequently restored once it had come back into compliance in India. In April 2024 the Securities and Exchange Commission (SEC) in the Philippines had ordered both Google and Apple to remove the Binance app from their app stores on the basis that it posed a risk to Filipino investors at the time.

Korean Crypto Exchange Operator Airdrops NFTs to Raise Biodiversity AwarenessDunamu, the operator of Upbit, one of South Korea’s leading cryptocurrency exchanges, made an announcement on Thursday regarding its initiative to raise awareness about biodiversity threatened by climate change. In collaboration with four organizations affiliated with the Ministry of Environment, Dunamu plans to transform Climate-Sensitive Biological Indicator Species (CBIS) into non-fungible tokens (NFTs), as reported by news media Daily Hankook.Photo by Alin Andersen on UnsplashAffected biological speciesCBIS encompasses biological species that have experienced significant changes in their seasonal activities, distribution areas, and population sizes due to climate change. These species require ongoing research and management by the government. The National Institute of Biological Resources (NIBR) of the Ministry of Environment compiled a list of 100 such species in July 2010. This list was created to facilitate the efficient monitoring of climate change’s impact on the distribution and vulnerability of biological species on the Korean Peninsula.The initiative is part of the Resource Circulation Climate Action Campaign organized by Dunamu with four environment agencies, namely the NIBR, the Nakdonggang National Institute of Biological Resources (NNIBR), the Honam National Institute of Biological Resources (HNIBR), and the National Institute of Ecology (NIE). Its key objective is to protect the habitats of plants and animals while raising awareness about biodiversity conservation.Species vanishing every 15 minutesWith climate change causing the extinction of one species every 15 minutes, the project aims to raise awareness about this distressing trend. In pursuit of this goal, 15 NFT editions will be distributed through four separate events over the course of a year, commencing on May 19. The participating artists include Jjawook, an artist with developmental disabilities; Jin Kwan-woo, an artist renowned for depicting endangered species using the Korean alphabet Hangul; and members of the Botanical Artists Society of Korea.NFT release planThe initial set of NFTs to be airdropped includes three species: the warbling white-eye, the common camellia, and the house holly-fern. These species have historically inhabited coastal regions of islands. However, as a result of climate change, their distribution and habitat have been shifting towards inland or northern areas.To obtain CBIS NFTs, individuals can visit Dunamu’s metaverse platform 2ndblock. Once there, they will have the opportunity to engage in a resource collection mission. Upon successfully completing the mission, users will receive an NFT gift code. To claim their NFTs, they need to register the provided NFT gift code on the Upbit NFT marketplace.Dunamu CEO Lee Sirgoo expressed his hope that the project would have a positive impact on raising awareness about biodiversity conservation on the Korean Peninsula, which is under threat from climate change. He stated that Dunamu intends to continue utilizing its technology and expertise in diverse ways to contribute to a sustainable future and environment.HNIBR Director Ryu Tae-chul believes that the campaign will encourage recycling in communities to reduce carbon emissions and serve as an inspiration for individuals to actively engage in initiatives that promote a sustainable and biologically diverse planet.

Korean Gov’t Encourages Discussions on Tax Imposition within the MetaverseThe South Korean government is planning to hold an open forum in August, encouraging citizens to discuss the possibility of imposing taxes within the metaverse, according to News1.New social frameworkOn Tuesday, Korea’s Ministry of Science and ICT (MSIT) announced the government’s plan to develop a new social framework in the digital age. To achieve this, the government will set up an open digital forum and draft a digital bill of rights.Topics to be covered in the forum include generative artificial intelligence, the metaverse, and self-driving cars.Regulation-free metaversesThe idea of imposing taxes within the metaverse has piqued the interest of cryptocurrency users. The government has reportedly decided to exempt community-based metaverses from regulations to encourage growth. This policy will enable metaverse users to provide gaming content and engage in economic activities such as trading items and distributing giveaways. However, the potential surge in economic activities in the metaverse has brought up the issue of whether tax implementation is necessary in this virtual world.Though community-based metaverses are still premature, the government acknowledges the importance of discussing potential tax imposition.While the current agenda is focused on metaverses, it remains unclear whether discussions will extend to loosening regulations for blockchain-based games.Strict gaming restrictionsCurrently, Korean law prohibits trading game items for cash to deter gambling behavior, prompting Korean game developers to publish their titles overseas first. In fact, Netmarble launched blockchain-based mobile board game Meta World: My City in regions other than Korea last month. This has led to concerns that Korea is falling behind in the global gaming industry due to strict regulations.Digital bill of rightsFollowing the open forum in August, MSIT will collaborate with other relevant government agencies, including the Culture Ministry and the Land Ministry, to draft a digital bill of rights in September.MSIT Minister Lee Jong-ho said that the government will conduct regular surveys to identify areas for improvement, assess the societal impact of technological advancements, monitor each ministry’s measures, and review public opinions.© Pexels/Nataliya Vaitkevich