Zodia Custody Launches Crypto Custodian Service in Dubai

One in every two South Koreans has experience investing in cryptocurrency, Herald Business reported, citing a recent survey. The findings from the Korea Financial Consumers Protection Foundation’s (KFCPF) 2025 Virtual Asset User Survey were presented at a financial academic conference in Seoul on Feb. 27. The survey showed that people in their 30s were more likely to have invested in cryptocurrency than any other age group. Participation also rose notably among women and older adults. In particular, the average investment amount among older investors increased by roughly 2.3 times compared with 2023.Photo by Precondo CA on UnsplashCryptocurrencies ranked second among preferred investment vehicles, trailing stocks but ahead of real estate and bonds. About half of crypto investors access exchanges at least three times a week, the survey found. Around 40% have used additional exchange services, including crypto lending. Investors with less than 1 million won ($680) in holdings accounted for 25.3% of respondents. They also accounted for a disproportionately large share of reported financial damages, including losses stemming from exchange bankruptcies or hacks. Many were found to invest without fully understanding the risks involved. Experts urge stronger investor safeguardsLee Jung-min, a researcher at the Korea Financial Consumers Protection Foundation (KFCPF), said there has been a recent increase in debt restructuring applications from investors overwhelmed by interest payments and loans tied to crypto trading. She called for stronger safeguards to curb excessive investment hype and restore market confidence, as well as clearer legal guidelines on how user assets should be returned in cases of exchange failures or hacks. Citing the foundation’s research, Lee said many small-scale investors—particularly those with less than 1 million won ($680) in holdings or those who relied on online trading tip groups—had suffered financial harm. With disputes over small transactions rising, she added that regulators are considering a binding dispute resolution framework for small claims that could eventually be extended to crypto trading. Kim Eun-mi of the Korea Inclusive Finance Agency (KINFA) warned that the crypto market’s high volatility and information gaps pose heightened risks to financially vulnerable groups. She underscored the need for stronger safeguards, similar to those in place for vulnerable borrowers in traditional finance, and added that greater transparency over how policy loan funds are used would help authorities determine whether such programs are being diverted into crypto investments. KINFA CEO Kim Eun-kyung added that while the number of crypto participants has surpassed 10 million, consumer protection measures have not kept pace with the market’s rapid growth. Experts are calling for stronger financial education for older adults with limited knowledge of digital assets and low-income young people. Jung Dae, head of the Korean Academy of Financial Consumers, said 2024 figures from the Seoul Bankruptcy Court show particularly high rates of personal rehabilitation and bankruptcy among people in their 50s and 20s, driven largely by failed post-retirement businesses in the former group and heavy spending on online gaming and crypto investments in the latter. He urged policymakers to pair targeted interventions with rigorous research.  Crypto complaints jumpComplaints related to cryptocurrency surged in South Korea last month, as Bitcoin fell about 45% below its October peak. Cases categorized as “virtual currency” jumped from just 68 in December to 2,054 in February—more than a 30-fold increase—and were 55.5 times higher than a year earlier, according to SBS Biz, citing data released Feb. 27 by the Korea Consumer Agency and the National Council of Consumer Organizations. Analysts said the spike in crypto-related cases was largely linked to a promotional campaign by a trading platform that changed the terms of its API-linked subsidy program midway, triggering a wave of investor inquiries. Meanwhile, a weekly survey of Korean investors conducted by CoinNess and Cratos points to deepening pessimism in the market. Just 10.3% of respondents expect Bitcoin to rise this week, down from 15.5% a week earlier, while 64.2%—up from 52.8%—predict further declines. More than 61% said they feel fearful or extremely fearful, and only 11.2% expressed optimism. Still, despite mounting bearish sentiment and online claims that the crypto boom is over, 60.9% said they see extreme pessimism as a potential buying opportunity. 

Korean Financial Watchdog: Investor Protection Boosts Crypto MarketLee Bok-hyun, Governor of the South Korean Financial Supervisory Service (FSS), addressed the issue of investor protection measures in the cryptocurrency market during his speech at the fourth Blockchain Leaders’ Club in Seoul. According to a report by local news agency News1, Governor Lee emphasized that these measures would not hinder the market but instead establish a positive cycle by increasing market confidence and driving industry growth.Photo by Joshua Miranda on PexelsCrypto user protectionTo underscore the importance of safeguarding users in the crypto industry, Governor Lee referred to recent incidents such as the collapse of stablecoin Terra and the failures of Silvergate and Silicon Valley Bank. He highlighted how these examples demonstrate the need for protective measures as the influence of the crypto market extends beyond the financial sector and impacts the real economy.Governor Lee further emphasized the FSS’s commitment to maintaining ongoing communication with the crypto industry and adapting the regulatory system to accommodate the changing landscape. He stated that the FSS would assist the industry in establishing its own self-regulatory system, which includes monitoring suspicious transactions and transparent procedures for virtual asset listing. Additionally, the FSS plans to collaborate with industry insiders to prevent misunderstandings when formulating relevant rules and regulations.Governor Lee also touched on the Virtual Asset User Protection Bill, stating that he expects to see the final draft this summer as it is currently undergoing a legislative process in the National Assembly. He highlighted the government’s commitment to improving market order and minimizing investor losses before the law’s implementation. The government is taking a “same risks, same regulation” approach to prevent regulatory arbitrage and establish effective monitoring systems for virtual asset transactions and on-chain data.Unfamiliar but importantMeanwhile, Lee Yong-woo, a member of the opposition Democratic Party of Korea (DPK), echoed the importance of establishing and improving a regulatory framework for the cryptocurrency industry. He drew parallels between the current situation and the dot-com bubble era, emphasizing the significance of not disregarding the potential of the crypto market due to unfamiliarity.Communication channelLawmaker Lee expressed hope that the Blockchain Leaders’ Club would contribute to shaping a stable crypto market by providing opportunities to listen to the opinions of market participants, which can then be reflected in managing and revising laws and regulations.Today’s event, hosted by News1, saw the gathering of lawmakers, government officials, crypto industry leaders, and academics. Among the participants were People Power Party Lawmaker Yun Chang-hyun, the top executives of the five major Korean crypto exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax), and the CEO of blockchain gaming company Wemade.

Japan mulls unrealized crypto gains tax exemptionJapanese lawmakers are currently in discussions about a proposal that could exempt companies from paying taxes on unrealized cryptocurrency gains.Photo by Joshua Tan on UnsplashReforming aggressive crypto tax policyThe plan is anticipated to be incorporated into the fiscal 2024 tax reform agenda, according to a report published by Nikkei Asia on Wednesday.Up until now, Japan has had some of the most aggressive tax rates where cryptocurrencies are concerned when compared internationally. At the moment, corporations have to pay a 30% tax on crypto holdings regardless of whether they’ve sold those digital assets or not. The policy has been criticized broadly by crypto sector participants in Japan. It is seen as inequitable, considering that Japan taxes profits from stocks at a flat 20%.Corporate tax exemptionThe proposal, currently under deliberation by Japan’s ruling coalition, specifically targets Japanese companies holding digital assets for purposes other than short-term trading. If approved, these firms may be granted an exemption from corporate tax, contingent on mark-to-market valuations at the close of the fiscal year.Mark-to-market valuations involve assessing the fair values of assets with periodic fluctuations, such as cryptocurrencies. This exemption is expected to benefit various entities, including venture capital (VC) firms, non-fungible token (NFT) businesses and other blockchain companies holding cryptocurrencies for payment purposes. Additionally, crypto issuers, who are also crypto holders, would not be subjected to these taxes.Policymakers from the Liberal Democratic Party and the ruling coalition partner Komeito engaged in discussions on Tuesday regarding these potential tax exemptions.Bringing clarity to crypto taxationThis move is part of Japan’s ongoing efforts to bring clarity to crypto taxation. In June, the National Tax Agency clarified that crypto issuers in the country would not be liable to pay capital gains taxes on unrealized gains, fostering a more conducive environment for crypto-related businesses.Japan has been actively reviewing its crypto tax policies since last year, aiming to incentivize companies to stay in the country. This initiative follows the departure of several startups due to heavy tax burdens.Industry reactionWith news of this potential Japanese crypto tax reform breaking, crypto community members haven’t wasted any time in providing their thoughts. Taking to the X social media platform, Sota Watanabe, the founder of the Astar Network multichain dApp hub, wrote:”Good move. This is what I requested multiple times to the government over years. Once this issue is solved this year, all companies, especially big enterprises, can hodl crypto like ASTR much easier. Japan weighs ending tax on some corporate crypto holdings.”Former Goldman Sachs Portfolio Manager and Web3 investor, Steve Lee, said that this is “another big move in Japan that would help enterprises push their crypto business.”The Financial Services Agency (FSA), Japan’s top financial regulator, recently submitted legislation-change requests to the government, seeking alterations to the taxation of domestic crypto firms. Critics argue that the existing rule has impeded innovation in the crypto-asset and blockchain sectors, placing an undue burden on companies.On Oct. 16, major businesses in Japan, through the Japan Association of New Economy (JANE), urged the government to implement crypto tax reforms in 2024. Their appeal emphasizes the potential for reduced tax rates to stimulate growth and increase tax revenue.