Korean Crypto Firms Organize Consortium for Real-World Asset Tokens

SKYPlay and 3D Factory join forces to bring Web3 to everyday lifeSKYPlay, a Seoul-based blockchain gaming platform, announced Monday (local time) that it has signed a business agreement with 3D Factory to create content that integrates Web3 into everyday life, thus facilitating the rapid expansion of Web3 technology.Photo by Medienstürmer on UnsplashSynergizing Web3 realmsThrough this business agreement, SKYPlay aims to combine its Web3 capabilities in gaming and art with 3D Factory’s Web3 capabilities in sports. The two enterprises will ultimately establish a technological foundation for accelerating the integration of Web3 into society and expanding its uses.Pioneering paths in gaming, sports and moreEstablished in 2021, SKYPlay is a Play-to-Earn (P2E) platform that offers several games and related services, including a gaming community and forum, to some 300,000 users. Previously, the company secured large-scale investments worth $3 million and $10 million from Hong Kong-based startup accelerator 1st Soul Group and U.S.-based investment group LDA Capital, respectively. It is also expected to participate in an outer space mission led by NASA and SpaceX through a partnership with Web3 community BitBasel.3D Factory is a global blockchain-based meta platform that provides a range of services like gaming, NFT sales and metaverse memberships. Notably, it is deeply engaged with Spanish soccer. Having signed an NFT sponsorship agreement with the Spanish Football Federation (RFEF) in November last year, 3D Factory was able to create its own metaverse. This partnership involves not only the Spanish national team but also club teams in the Copa del Rey and Super Cup competitions, featuring some of the world’s biggest football teams like Real Madrid FC and FC Barcelona.

Internet-only Kbank offers virtual accounts for fractional art investorsKbank, a neobank based in South Korea, announced on Tuesday (local time) a new service for its customers interested in art investment. According to a report by local news outlet Newsis, Kbank has introduced virtual accounts for clients investing in securities that allow fractional ownership of artworks. These virtual account numbers will mirror the mobile phone numbers of securities subscribers, making them easy to remember and use. Subscribers will utilize these accounts to deposit funds for placing bids on fractional shares of art pieces.Photo by Precondo CA on UnsplashYayoi Kusama’s pumpkinThis unique bidding event, a first in the nation, is scheduled to run until Dec. 22. It will feature “Pumpkin,” a 2001 artwork by renowned Japanese contemporary artist Yayoi Kusama. Artnguide, a platform operated by Yeolmae Company, is managing the event. Yeolmae Company has secured regulatory approval to issue security tokens backed by the artwork.Total of 12,320 sharesThe event offers a total of 12,320 shares, with each share having a par value of KRW 100,000, which is approximately $77. An individual participant in this event is allowed to place bids for a maximum of 300 shares.In the Korean crypto market, Kbank is well-known for providing banking services to Upbit, the nation’s largest fiat-to-crypto exchange. In Korea, legal regulations mandate that any virtual asset service provider offering trading in Korean won must secure bank accounts from a local bank.Kbank’s recent initiative highlights the internet-only bank’s active engagement in the blockchain industry. Presently, Kbank provides its virtual account services to 16 companies, and it is focused on expanding its partnership base. Looking ahead, the bank plans to diversify its financial offerings, exploring innovative approaches like security token offerings to broaden its services in the evolving financial landscape.

South Korea will tax crypto gains regardless of whether assets sit on domestic exchanges, offshore platforms or in self-custody wallets when its long-delayed digital asset levy takes effect in 2027. Policing private wallets, however, will be difficult, the tax agency acknowledged. Income residents earn from transferring or lending digital assets will be subject to tax wherever they are kept, the Ministry of Economy and Finance and the National Tax Service said in written responses to People Power Party lawmaker Kim Sang-hoon, according to Digital Asset. The regime is scheduled to take effect Jan. 1, 2027. Gains above an annual deduction of 2.5 million won, or about $1,800, will be treated as miscellaneous income and taxed at 20%, or 22% including the local surtax.Ilustration generated with ChatGPTThe NTS said self-custody wallets are difficult to track since users can freely generate new addresses and transact without regulated intermediaries. It plans to use blockchain tracing tools to strengthen enforcement. For offshore exchanges, authorities will rely on overseas financial account reporting and the OECD's Crypto-Asset Reporting Framework, or CARF. The treatment of staking, lending, airdrops and hard forks remains unsettled. Tokens distributed free by exchanges may already count as miscellaneous income when classified as prizes or promotional rewards. Foreign crypto companies and domestic financial institutions are also expanding their presence in the market. BitGo Korea completed its virtual asset service provider registration after receiving Financial Intelligence Unit approval on Aug. 18, Yonhap reported. It is the first local subsidiary of a foreign crypto company to register as a VASP without acquiring an already licensed operator. Hanwha Asset Management, Ripple and U.S. investment manager Canary Capital have formed a partnership spanning trading, custody, wallets, payments, tokenized real-world assets and exchange-traded funds, Korea Economic Daily TV reported. Canary CEO Steven McClurg said the company intends to launch an ETF in South Korea, building on its experience with its U.S. XRP ETF. Ripple has also signed Jeonbuk Bank as the first South Korean regional bank to use Ripple Payments for cross-border corporate remittances, cutting settlement times from several days to near-instant. Shinhan Asset Management signed a memorandum of understanding with Plume Network to test a won-denominated tokenized fund based on one of its ultra-short-term bond funds, Yonhap Infomax reported. The trial will be conducted in a country outside the two markets and cover issuance, distribution, wallet whitelisting, know-your-customer (KYC) checks and anti-money-laundering (AML) controls. Any rollout at home would still require regulatory approval. The 2027 timeline could still slip. Kim is preparing a bill to push the levy back to Jan. 1, 2029, Edaily reported. The National Assembly's legislative office is reviewing the proposal, which could be introduced as early as this month. South Korea first planned to introduce the crypto tax in 2021 but has delayed it several times.