Interactive Brokers Hong Kong secures retail crypto trading license

Henan Province Establishes Metaverse FundAn administrative body within China’s Henan Province has established a 150 million yuan ($21.7 million) private equity investment fund which will be centered on financing metaverse-related projects.In a social media post on Thursday, the Assets Supervision and Administration Commission of Henan, a state-owned body, said that the fund had been created last month. The objective of the fund is to promote the development of the virtual reality and metaverse sectors. Specifically, the agency wants to bring about the development of “internationally competitive digital industrial clusters.”Photo by Jéan Béller on UnsplashA metaverse strategyLast year, Henan province administrators released a plan, setting out the objective of achieving a local metaverse industry reaching a level of 30 billion yuan by 2025. The plan was titled “Henan’s metaverse industry development plan for the years 2022 to 2025.” Its authors set out the objective of creating an industrial metaverse, an energy metaverse, an education metaverse and a virtual human metaverse.Henan is one of a number of regions vying to capture the upside in terms of the promise of the development of innovation relative to the metaverse. Earlier in 2022 local government in Shanghai set out to establish an industry fund of 10 billion yuan (approximately $1.4 billion) in assets, focused purely upon metaverse-centric development and innovation.Earlier this year, a delegate attending one of the city’s most influential yearly political meetings called for efforts to be made to provide for adequate regulation to enable further metaverse development and effective supervision of the space.The Beijing-based and state-backed China Computer Industry Association (CCIA) also took an interest last year, forming a metaverse committee to draft industry standards. It too planned to establish a 1 billion yuan fund, while aspiring to help other regional authorities establish a blueprint to progress the industry.Not to be outdone, Hubei province’s Wuhan and Anhui administrative areas made a pledge to boost metaverse development over the course of the next five years. Within the Wuhan administrative area, city officials are said to be aiming to integrate the metaverse, cloud computing and blockchain into the conventional, real economy.Opposing viewsIt’s curious to note that when it comes to decentralized blockchain and cryptocurrency, China has been vehemently opposed to their development within its borders. In September 2021, the country banned cryptocurrency transactions. Prior to that, it had implemented a ban on cryptocurrency mining activity, forcing the large miners that had long since established there to move overseas.It’s difficult to see how it can be positive relative to the metaverse when a metaverse depends on the use of blockchain technology. To confuse matters further, over the course of the past six months, it seems to have given a mandate to the autonomous territory of Hong Kong to open its doors in facilitating the crypto and blockchain sector in total contrast to the stance taken within mainland China.Recently compiled industry and market research suggests that the metaverse industry in China is expected to grow by 39.5% in 2023, with the space having experienced significant growth in the country over the course of Q3 and Q4, 2022.

Wemade joins hands with Dubai Chambers to expand Web3 and gaming endeavors in Middle EastSouth Korean blockchain gaming publisher Wemade has partnered with the Dubai Chambers to support each other’s objectives for making advancements in the Web3 and gaming sphere.Photo by Kent Tupas on UnsplashTheir commitments were exchanged when Wemade CEO Henry Chang met with Mohammad Ali Rashed Lootah, the President and CEO of the Dubai Chambers, during his trip to the United Arab Emirates this week for this year’s Abu Dhabi Finance Week and the Fortune Global Forum, according to industry sources on Tuesday (KST).The Dubai Chambers of the UAE is a non-profit public agency that plays a central role in creating an environment for businesses in Dubai to thrive, thus bolstering the business landscape. It is divided into three sectors — commerce, international and digital economy.A strategic allianceDuring the meeting, the Dubai Chambers pledged to support Wemade’s business expansion in the Middle East region by helping the company establish networks with local organizations and companies. It also vowed to facilitate active exchange between Wemade and the Dubai Chambers’ overseas offices in 27 countries. In turn, Wemade stated that it would strengthen its local business capabilities to contribute to the growth of Dubai’s gaming and Web3 industries.“Dubai is one of the most dynamic regions leading the next-generation gaming industry, and the role of the Dubai Chambers is crucial. Wemade will actively support Dubai’s gaming industry initiatives with the experience and technical expertise that we have accumulated over the years,” Chang said. Lootah also expressed his anticipation for the partnership, reaffirming Dubai’s commitment to fostering a tech-savvy ecosystem.Earlier this month, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai, announced a new vision to grow Dubai into one of the top ten cities for gaming in the world by creating 30,000 new jobs and increasing GDP by $1 billion by 2033.Strengthening tiesChang and Lootah’s meeting is the latest development in the budding business relationship between Wemade and the UAE. Previously, a delegation from the Dubai Chambers visited South Korea in September, during which it visited Wemade’s headquarters. Wemade also opened an office in Abu Dhabi earlier this year.

Japan’s FSA Proposes Tax Exemption for Unrealized Crypto GainsThe Financial Services Agency (FSA) of Japan has taken the step of putting forward amendments that provide a notable tax exemption for unrealized gains on cryptocurrency holdings.Photo by Erik Eastman on UnsplashFSA proposalThe move is significant in that it spares domestic companies from the standard 30% corporate tax rate typically imposed on digital assets up until now. According to reports in local media, that proposal was detailed in a comprehensive 16-page document outlining various regulatory modifications.The most pivotal change within this document is the exemption of domestic companies from the annual “unrealized gains” tax on cryptocurrencies. Unlike some countries that only tax crypto assets when they are converted into fiat currency, Japan currently enforces an annual tax on these digital assets.2023 tax reform agendaThe proposed amendment has garnered support from the Ministry of Economy, Trade and Industry, indicating its potential passage. These discussions are part of Japan’s broader tax reform agenda for 2023, suggestive of the Asian nation’s interest in fostering a favorable environment for the blockchain and cryptocurrency industries.It is important to note that this tax exemption applies exclusively to companies that issue their own tokens and does not extend to entities solely involved in investing in other digital currencies. Additionally, individual crypto investors will still be subject to a maximum income tax rate of 55% on earnings exceeding JPY 200,000 ($1,355) related to cryptocurrency, categorized as “miscellaneous income.”The exemption is structured in a way that excludes these digital coins when assessing a company’s asset market value, provided specific conditions are met. Presently, Japanese law mandates that companies holding crypto assets must pay taxes on unrealized gains at the end of each tax period.To qualify for the tax exemption, a company must meet specific criteria outlined by the tax authority. Firstly, the company must be the issuer of the cryptocurrency in question. Additionally, it must retain continuous ownership of the crypto asset after issuance, while the asset itself remains subject to transfer restrictions.Blockchain ambitionsThis development aligns with Japan’s broader ambition to nurture and expand its blockchain and cryptocurrency sectors. Prime Minister Fumio Kishida recently articulated a vision for a “new form of capitalism,” emphasizing the importance of fostering innovation and growth in emerging industries, inclusive of the Web3 sector. As Japan moves forward with these changes, it signals its interest in creating a conducive environment for blockchain and crypto ventures to thrive.Over time Japan has been iteratively building a framework in respect of digital assets. In 2017 the country recognized Bitcoin as a legitimate property in accordance with the Payment Services Act (PSA). That same year, the Tax Agency classified crypto earnings as miscellaneous income. In 2020, crypto assets were included in Japan’s fund settlement law. Around the same time frame, the FSA brought in the requirement for crypto exchanges to register and obtain a license.These amendments also form part of a series of changes that the Japan Blockchain Association (JBA), an industry advocacy group, has been canvassing for. The proposed changes reflect a pragmatic approach to taxation, doing away with a paper profits taxation treatment in favor of a more progressive approach.