Mirae Asset Securities and NEAR Protocol Partner to Advance Blockchain Tech

In a significant move to propel Thailand towards becoming a digital asset hub, the Finance Ministry has announced the exemption of value-added tax (VAT) on digital asset trading. VAT exemptionAccording to the Bangkok Post, the decision became effective on Jan. 1. It aims to foster the growth of the digital asset industry and support the country's growing digital economy. Paopoom Rojanasakul, secretary to the finance minister, underscored the ministry's commitment to promoting digital assets as a viable fundraising tool. By suspending the requirement to pay 7% VAT on income derived from cryptocurrency and digital token trading, authorities seek to encourage investment in the digital asset market. This VAT exemption extends beyond authorized digital asset exchanges to include brokers and dealers under the supervision of the Securities and Exchange Commission (SEC). The move aligns with Thailand's ambition to position itself as the region's premier digital asset hub. Moreover, the Finance Ministry and SEC are actively amending the 2019 Securities and Exchange Act to enhance regulations concerning digital investment tokens, bringing them more in line with securities.Photo by Markus Winkler on UnsplashAttracting offshore digital asset sector investmentThailand's attractiveness to offshore digital asset investors has grown substantially in recent years. The new tax policies are poised to further bolster the country's position in the global digital asset market. Last month, the Thai SEC adjusted the rules governing digital token investments, raising the investment ceiling that had been imposed on retail investors where initial coin offerings (ICOs) relative to infrastructure and real estate are concerned. Furthermore, the Commission has updated criteria for custodial wallet provider businesses, enabling them to extend their services to digital asset business operators, thereby facilitating smoother operations within the digital asset ecosystem. However, Mr. Paopoom emphasized the importance of balancing development with financial stability. While fostering innovation in the digital asset sector, the government remains mindful of safeguarding the integrity of the financial system. Despite these advancements, the SEC has made it clear that it will not permit the trading of spot bitcoin exchange-traded funds (ETFs) in Thailand. This decision contrasts with the recent approval of bitcoin ETFs in the United States and moves towards approving crypto ETFs in Hong Kong, reflecting Thailand's cautious approach to cryptocurrency-related financial products. Nevertheless, Thailand continues to attract global crypto exchanges, with industry giants such as Binance establishing a presence in the country. Last month, Binance announced the launch of crypto exchange services to the general public in Thailand through Gulf Binance, a joint venture with Thailand’s Gulf Innova. The VAT exemption on digital asset trading represents a pivotal step in Thailand's journey towards embracing the digital economy. With supportive regulatory measures and a dynamic market environment, Thailand aims to take its place as a leading player in digital assets.   

Gemini Opening Engineering Center in IndiaUS-based crypto exchange Gemini announced on Thursday that it is in the midst of opening an engineering center in India. The company plans to open the center in Gurgaon, making it Gemini’s second largest engineering hub behind its existing base in the United States. Gemini also has offices in the United Kingdom, Singapore and Ireland.©Pexels/Studio Art SmileDeveloping next-gen user experiencesThe objective of the India-based engineering, design and operations team will be to work on the development of core platform fundamentals relative to compliance, security, payments, and data pipelines and warehousing. Furthermore, the unit is being set the goal of building new feature sets relative to the company’s NFT and digital asset marketplaces. What that team develops is intended to be used within Gemini’s overall retail and institutional product and service offering across in excess of seventy countries worldwide.In the statement published to its website, Pravit Tiwana, Gemini’s Global Chief Technology Officer (CTO) and Asia-Pacific (APAC) region Chief Executive Officer (CEO) stated that the firm is actively recruiting software engineers and technical product managers and for other technical roles to staff the Gurgaon facility. Tiwana emphasizes a need for people who are “inspired to learn quickly” relative to DeFi, Web3, NFTs and DAOs.Singapore expansionTiwana himself has been newly appointed to his role and in a separate announcement Gemini founders Tyler and Cameron Winklevoss welcomed Tiwana on-board. The statement also reveals that in addition to establishing an engineering team presence in India, it also intends to add a business team in India and to expand its business team at its existing Singapore base with the objective of growing its institutional and retail customer base in the APAC region.The Winklevii twins said that they believe that “crypto and Web3 products will continue to have a [sic] strong growth trajectories in APAC. Crypto knows no boundaries, and that is why Gemini is a global company.”Expanding beyond the USIt’s patently obvious to anyone following developments in the crypto space over the course of recent months that the Biden administration in the United States is currently hostile to crypto. The Washington, D.C. government has used various mechanisms of state including the Federal Reserve, the Securities and Exchange Commission (SEC), the Department of Justice and the Department of the Treasury to instigate a purge against crypto companies, including those who bank crypto companies. That has seen key operators in the US crypto ecosystem looking beyond US borders right now.Earlier this week, Coinbase CEO Brian Armstrong signaled that the company would act and move overseas if the regulatory environment in the United States didn’t improve. Subsequently, it emerged that Coinbase had established a presence in Bermuda. It’s being speculated that this entity could be used to float an offshore exchange. Similarly, the company is understood to be seeking a crypto license in Abu Dhabi.Gemini looking to develop overseas is likely to be motivated by similar concerns. Crypto companies can see that jurisdictional arbitrage applies and if governments act to stymie such business activity, other global centers such as Singapore, Hong Kong, Abu Dhabi, India and others will seize the opportunity and nurture that business and the innovation at hand.

Korean Lawmakers Complete First Rough Draft of Virtual Asset User Protection BillKorean lawmakers have completed the first rough draft of the virtual asset user protection bill at a National Policy Committee meeting held later last month.©Pexels/Matthias ZomerAgreeing on term usage ‘virtual assets’So far, 18 bills have been proposed to regulate cryptocurrencies, and the lawmakers and the Financial Services Commission (FSC) agreed to use the term “virtual assets” to encompass similar terms such as digital assets and crypto assets.Phased enactment of billsThe bills are likely to be reviewed under the title “Virtual Asset User Protection Act.” The bipartisan group agreed to enact the bills in phases, introducing the user protection bill in the first phase and the virtual asset listing and issuance bill in the second phase.Meanwhile, there were mixed opinions on the content of the bills. In particular, there was debate over whether the bills should stipulate that the central bank digital currency (CBDC) is excluded from virtual assets, and whether the bills should include a standard for determining if a virtual asset is a security.Debate over stipulating CBDC’s statusThe stipulation of excluding CBDC from virtual assets was the most divisive topic since it would lead to defining the conditions for other assets such as non-fungible tokens. Moreover, the Act on Reporting and Using Specified Financial Transaction Information, which currently regulates virtual asset service providers (VASPs), does not contain any stipulation on CBDC. Some raised concerns that such discrepancies could later cause confusion. In the end, assembly members decided to discuss the matter again in April after consulting with the Bank of Korea and the Ministry of Government Legislation.Criteria for classifying virtual assets as securitiesRegarding whether to include criteria for classifying virtual assets as securities, the lawmakers and financial regulators took different sides.Lee Yong-woo, a member of the Democratic Party of Korea, underlined that a clear statement of the relationship between the issuer and the recipient of virtual assets in a whitepaper can determine their security status. He added that such provisions should be included in the bills.Park Min-woo, an FSC official, on the other hand, commented on a cautious note that in case virtual assets fall under the category of securities, they may not be applicable to the virtual asset act. He explained that VASPs might deal with both securities and virtual assets, and in such cases, there could be a misunderstanding that VASPs are not subject to the virtual asset act simply because they trade securities.