Korean health management app leverages blockchain for iris-based solutions

Hana Bank Enables Korean Art Collectors to Prove Ownership with NFTsHana Bank, one of South Korea’s largest banks, has announced a partnership with Trackchain, a Korean blockchain firm, to enhance digital art banking services based on Web3 technology, according to a press release.Photo by Debby Hudson on UnsplashArt banking and NFTsThe collaboration aims to develop and operate a platform that promotes art banking services, including the exhibition, advertisement, and distribution of artworks. Furthermore, the two entities will create non-fungible tokens (NFTs) to verify the ownership of artworks and introduce artwork custody products. They will also explore and construct business models that integrate finance and blockchain technology.Bank’s custody serviceHana Bank, recognized as a leader in art banking, has already established a comprehensive custody service that ensures secure management, storage, and liquidation of art collections. Through this partnership, Hana Bank plans to refine NFT technology, which will provide transaction history and ownership verification for artworks. The objective is to enhance transparency and convenience for art collectors during the trading process.Visitors who purchase artworks by Artist Cho Sung-hee at an exhibition hall in Gangnam, Seoul, and choose to store them in Hana Bank’s custody will receive NFTs issued by Trackchain. These NFTs serve as proof of ownership, authenticating the artworks. Cho Sung-hee is known for her collage works created with Korea’s traditional hanji paper, made from laminated sheets. The exhibition will run from July 4 to 28.Additionally, purchasers of the displayed artworks will receive Cho’s digital art NFTs. Meanwhile, customers who use Hana Bank’s mobile app, Hana 1Q, to create their own artworks will earn corresponding NFTs.Kim Young-hun, Head of Hana Bank’s Wealth Management Unit, expressed enthusiasm about their Web3-based art banking service, emphasizing that it will facilitate easier art purchases and provide enhanced security for managing art collections. Kim also stated that the bank intends to expand its services further to deliver exceptional cultural experiences.

Upbit D Conference participants share insights on Web3 and blockchainBlockchain specialists from 29 countries gathered on Monday (local time) at Upbit D Conference (UDC) 2023 in Seoul to explore capital markets in the forthcoming Web3 era. This era is characterized by user-controlled, communal data management, a notable shift from the Web2 space where major tech corporations held dominant control over data.Organized by Dunamu, the operator of South Korea’s Upbit cryptocurrency exchange, the conference featured 39 experts, focusing on the transformative potential of blockchain technology in this new internet phase.Photo by Shubham Dhage on UnsplashAsset tokenization and investment opportunitiesAccording to a report by the Asia Business Daily, one of the key speakers at the conference, Wally Yu, a Solutions Architect at San Francisco-based Chainlink Labs, delved into how cross-chain solutions and asset tokenization could add to the financial industry. He explained that Chainlink’s Cross-Chain Interoperability Protocol (CCIP), designed to connect various blockchains, is only beginning to reveal its capabilities in integrating with traditional financial markets. Yu pointed out the growing interest from banks in tokenizing their conventional assets and transferring them to the blockchain. This move, he suggested, could lead to increased liquidity and open up new investment opportunities.Yu also compared the current DeFi market to traditional sectors like stock, real estate, and derivatives, noting DeFi’s relatively smaller scale. However, he underlined blockchain’s transparency as a key advantage over traditional markets, where transparency is often lacking. According to Yu, the adoption of blockchain by traditional financial firms could address longstanding issues more effectively.Looking ahead to the Web3 era, Yu envisioned a scenario where different tokens are interconnected, potentially bringing an estimated $900 trillion worth of assets onto the blockchain. This, he believes, would significantly enhance liquidity in the financial markets.From Web2 to Web3During the conference, Korean mobile network provider SK Telecom’s (SKT) Vice President, Oh Se-hyun, outlined the company’s forward-looking strategy to transition its 30 million subscribers from Web2 to Web3. She highlighted SKT’s search for high-value markets to expand its business scope, underscoring the company’s active efforts in constructing Web3 infrastructure. This strategic pivot aligns with their vision for the upcoming Web3 era.SKT, which established its Web3 division in 2017, initially engaged in developing a private mainnet. However, the company has since shifted its focus towards services aimed at boosting customer engagement, such as custody, web and app services. Oh emphasized the need for Web3 wallets to support a diverse range of assets and decentralized applications (dApps), but she stressed that ease of use is paramount. She views that these wallets will serve as gateways for customers entering the blockchain space.SKT has developed and is improving its own Web3 wallet, dubbed Wallet T. Oh shared her belief that the future of financial business models will pivot from traditional and big-tech banks to those based on public chains. In preparation for this shift, SKT is contemplating strategies to embrace blockchain-based Web3 services.Crypto regulationThe conference also touched on the potential integration of virtual assets within regulatory frameworks. There’s growing anticipation in the market for the approval of spot bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission, especially following the inclusion of asset manager BlackRock’s proposed spot bitcoin ETF in the Depository Trust and Clearing Corporation’s (DTCC) clearing-house eligibility file.Emily Parker, Executive Director at CoinDesk, mentioned that a spot bitcoin ETF is on the horizon in the U.S. She anticipated that such a development would not only boost cryptocurrency prices but also positively impact the market for non-fungible tokens (NFTs). Echoing this sentiment, Oh Se-hyun from SKT predicted that the approval of a spot bitcoin ETF could unlock access to a $30 trillion market.SKT’s Oh also addressed the complexities surrounding the regulatory landscape for cryptocurrencies. She acknowledged the challenge facing authorities in developing these regulations all at once, highlighting the gradual progress in this area. She cited the outcome of Ripple’s lawsuit in the U.S., which resulted in Ripple’s XRP tokens being classified differently for different investors: as a security for institutional investors but not for retail investors. Additionally, Oh pointed to the upcoming Markets in Crypto-Assets Regulation (MiCA) in the European Union, slated for implementation in December 2024. She emphasized that the establishment of such regulatory guidelines brings clarity and reduces uncertainty, which can be reassuring for businesses operating in the crypto space.Providing further insights into this matter, Kim Gap-rae, a senior researcher at the Korea Capital Market Institute (KCMI), spoke about the importance of regulatory clarity in the cryptocurrency sector. He pointed out that it’s more crucial for governments to have clear regulations rather than focusing on the extent of regulation. Understanding new regulatory or legislative trends is essential for governments as they look to develop new infrastructures.According to Kim, a potential spot bitcoin ETF approval in the U.S. could prompt South Korea to consider a similar approval. However, he noted that Korea currently lacks a regulatory framework for Bitcoin custody, which could lead to a competitive environment among crypto companies in the country. Kim believes that a deeper understanding of custodian regulations will enable better adaptation to new types of ETFs and foster their growth in Korea.

Japan’s financial sector is poised for a significant change as the Financial Services Agency (FSA) unveils new tax reform guidelines for fiscal year 2025. This marks the first time virtual currency transactions will be addressed within Japan's tax framework, signaling a pivotal shift in the country’s stance on cryptocurrency taxation. Current taxation issuesPresently, Japan imposes a maximum tax rate of up to 55% on cryptocurrency revenues, a figure that has been criticized for deterring investment in the growing crypto market. Crypto profits are taxed as miscellaneous income, with the highest rate applying to earnings over 200,000 Japanese yen. Corporate holders of crypto assets face a flat 30% tax on their holdings, irrespective of their income or profits. These high tax rates contribute to Japan's relatively low cryptocurrency adoption rate, placing the country 18th in the 2023 Global Crypto Adoption Index by Chainalysis.Photo by Tobias Wilden on UnsplashIn response to rising demands from both investors and businesses, there is strong advocacy for a more favorable tax structure. The new proposal suggests reducing the crypto tax rate to 20%, aligning it more closely with the tax rates applied to traditional financial assets like stocks. This reform is viewed as essential for rejuvenating the industry, especially given Japan’s increasing engagement with cryptocurrencies. Japan's interest in cryptocurrencies extends beyond individual investors. Major institutions are making notable advancements in the field. Ripple, a key player in the crypto space, has teamed up with over 50 Japanese financial institutions to develop a new payment infrastructure leveraging blockchain technology. Meanwhile, private companies like Metaplanet are also expanding their crypto investments, recently securing a loan of 1 billion Japanese yen ($6.8 million) at an annual percentage rate of 0.1%.  Impending tax changesThe FSA's decision to include crypto assets in the 2025 tax reform proposal represents a significant departure from previous reluctance to formally recognize the industry. The proposed changes would expand loss offset provisions, potentially aligning crypto assets with the tax treatment of public bonds and listed stocks. This adjustment could offer relief to investors by allowing them to offset losses against their crypto gains. Despite these promising developments, the implementation of these proposals remains uncertain. A previous proposal to reduce the crypto tax burden has failed to produce policy changes. Nevertheless, the inclusion of crypto assets in the FSA’s reform agenda is a positive step toward a more supportive regulatory environment. Japan’s current high tax rates contrast sharply with other crypto-friendly regions in Asia. For instance, the United Arab Emirates (UAE) has become a major hub for crypto businesses by imposing no taxes on crypto profits. Similarly, countries like Hong Kong, Singapore, Thailand and Indonesia have attracted significant crypto activity due to their progressive regulations and lower tax rates. Conversely, India’s 30% flat tax on crypto has prompted many companies to relocate to more favorable jurisdictions such as Dubai. As Japan considers transitioning to a more crypto-friendly tax regime, there is cautious optimism about its potential impact on the industry. If successfully implemented, the proposed changes could boost adoption and growth, making Japan a more appealing location for crypto businesses and investors. The ultimate effect will depend on the government’s reception and execution of these proposals in the coming years. For now, the inclusion of crypto assets in the tax reform agenda marks a promising step toward a more balanced and supportive regulatory landscape for the cryptocurrency industry in Japan.