Report: Can Bitcoin Replace Gold As a Safe Asset?

Korea’s Crypto Exchange Group Hires Data Security Professor as AdvisorThe Digital Asset eXchange Alliance (DAXA) — a group consisting of the top five South Korean cryptocurrency exchanges: Bithumb, Coinone, Gopax, Korbit, and Upbit — announced on October 24 (local time) that it has appointed an information security professor as one of its advisors.Photo by Heng Films on UnsplashInvestor protection expertDr. Hwang Seok-jin, a professor at the Graduate School of International Affairs and Information Security at Dongguk University, is widely recognized for his expertise in investor protection. He has previously held positions with the ruling People Power Party’s Digital Asset Special Committee, the Korean Army, the Korea Coast Guard, and the Korea Association of Anti-Money Laundering.Upcoming regulation rolloutDAXA Vice Chairman Kim Jae-jin said, “The alliance has decided to bring on a new advisor ahead of the upcoming implementation of the Virtual Asset User Protection Act. Given his wealth of experience and expertise, we expect that Professor Hwang will contribute to significantly enhancing the objectivity and practicality of DAXA’s self-regulation.”The advisory term at DAXA is one year, which means the new advisor’s tenure will extend until October 24, 2024.

Zetrix, a layer-1 blockchain project for real-world applications, has launched an electronic Know Your Customer (KYC) verification product for Chinese nationals. The Malaysian enterprise, which is a subsidiary of digital services company My E.G. Services Berhad (MYEG), has launched ZCert. The offering is available to Chinese nationals who opt to have their digital identities published to the Xinghuo BF network, a Chinese national blockchain infrastructure network developed under the guidance of China’s Ministry of Industry and Information Technology and managed by the China Academy of Information and Communications Technology.Photo by Diego Jimenez on UnsplashFirst-of-its-kind applicationZetrix acts as an international super-node relative to the Xinghuo blockchain. In a press release published by PR Newswire on Oct. 3, the company outlined that ZCert had been launched as a first-of-its-kind application, enabling Chinese nationals “to be authenticated and verified digitally overseas, paving the way for a seamless, efficient, and secure verification process for verifiers and identity holders. ” The service simplifies the issue of identity verification for verifiers located outside of China, as a consequence of Zetrix’s integration with the Xinghuo BIF network.  Connecting to ‘China Web3’Xinghuo signed a memorandum of understanding (MoU) with Zetrix’s parent company, MYEG, to establish the international super-node back in November 2022. The tie-up was seen as an opportunity to provide access to Chinese government agencies and businesses internationally.  At the time, MYEG Managing Director and Zetrix Co-Founder Wong Thean Soon said that “with the commencement of the Xinghuo International Supernode, the rest of the world can connect and be part of the China Web 3 evolution that will promote the establishment of international communities and facilitate global trade and finance.”  On this occasion, Wong said that the new product “enables a new wave of services powered by smart contracts.” He added that KYC processes can be simplified and automated, while “user data is retained by users at all times and only critical information is shared in an encrypted manner." The company has already digitized Chinese driving licenses for the purpose of overseas verification. Furthermore, it has plans to expand its offering beyond ID verification soon. In April of this year, Zetrix and MYEG signed an MOU with MaiCapital, a Hong Kong-based virtual assets manager, with a view towards collaborating on the launch of a digital asset fund or digital asset-based exchange-traded fund (ETF). Last year Zetrix engaged in a pilot project with the Bank of China with the aim of offering supply chain financing products. On a similar theme, its parent company entered into a partnership with the Philippines Bureau of Customs (BOC) and Cargo Data Exchange Center Inc. (CDEC), also in 2023. The collaboration involved the use of Zetrix’s ZTrade product, a Web3 platform that enables digitized trade document verification. Zetrix launched its ZETRIX token in October 2023 through an initial exchange offering (IEO) facilitated by the Coinstore exchange.

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.