Kakao Games affiliate Metabora Singapore announces partnership with Oasys

Thailand’s capital markets supervisory agency, the Securities and Exchange Commission (SEC), is preparing to launch a trading system, built on distributed ledger technology (DLT), to enable securities firms to trade tokenized securities.Photo by allPhoto Bangkok on PexelsTokenized investments gaining tractionThat’s according to a report published on Feb. 3 by Bangkok-based English language newspaper, the Bangkok Post. Jomkwan Kongsakul, deputy secretary-general of Thailand’s SEC, said that tokenized investments are gaining traction. With that, the development will give the regulator experience in supervision of the latest digital-era markets. The move is also seen as an indication to securities firms of the acceptability of DLT-based tokenized trading from a regulatory perspective in Thailand. The regulator plans to sign off on permitting securities firms to trade digital tokens, bootstrapping digital token trading through accessing the large investor bases of these firms. Commenting on the initiative, Jomkwan Kongsakul stated: “The SEC is leveraging technology to enhance efficiency in the capital market by promoting an electronic securities ecosystem,” while “new regulations will be launched to facilitate the issuance of electronic securities and online purchases of debentures.” Debentures are unsecured debt instruments issued by companies to raise funds. Efficient primary & secondary market tradingThe proposed system will incorporate primary and secondary market trading of fully digitized bonds. Other features will include investor registration and multiple blockchain support with the inclusion of blockchain interoperability capabilities. It is as yet unclear which blockchains the platform will be built around. Speaking on that topic, the SEC executive stated: “In the future, there may be multiple chains for trade. Trading through DLT on all systems is connected by a shared ledger, which is expected to be completed soon.” In its preparations to launch the system, the Thai SEC has approved four digital token projects thus far. Two more projects are understood to be at the review stage. The focus is being placed on green tokens and investment-based projects. The regulator believes that through tokenization, greater efficiency and liquidity can be achieved. There’s a delay of between seven and 14 days before bonds, which have been bought on the primary market, can be traded on a secondary market. Tokenization can help to resolve this issue.  Furthermore, where bonds are too expensive for investors or too illiquid, tokenization can help in both cases, broadening access to the range of products available to the investing public. In addition to this latest news, a number of positive signs have arisen from Thailand with respect to digital assets in recent weeks. It emerged last month that the SEC is considering approving spot Bitcoin exchange-traded funds (ETFs) within the Southeast Asian nation.  Related to that development, SEC Secretary-General Pornanong Budsaratragoon said that the agency has “to adapt and ensure that our investors have more options in crypto assets with proper protection.” Last month, comments made regarding cryptocurrency by Thailand’s former Prime Minister, Thaksin Shinawatra, were quite positive. He called on the SEC to enable the trading of stablecoins. Since then, Thailand’s Minister of Finance, Pichai Chunhavajira, discussed plans to issue a stablecoin that would be based on the Thai Baht and backed by government bonds.

Korean Financial Authority Installs Report Center to Counter Crypto ScamsThe Korean Financial Supervisory Service (FSS) announced today that it has installed a dedicated report center aimed at combating investment fraud related to virtual assets. From June 1 through to the end of this year, the report center will run a reporting campaign.Photo by Katrin Hauf on UnsplashSurge in crypto fraud casesWhile the National Assembly is working on the legislation of the Virtual Asset User Protection Bill, there has been a surge in fraudulent activities exploiting regulatory loopholes. According to the FSS, the number of reported cases of crypto fraudulent activities in Korea surged by 67.2% last year, reaching 199, compared to the previous year’s 119.In a proactive response to this rising concern, the FSS has set up a report center, designed to staunch the escalating tide of fraud.Coordinated efforts against financial fraudUnder the guidance of the Anti-Financial Fraud Office, the report center will operate collaboratively with other relevant departments, such as the Consumer Finance Department and the Asset Management Examination Department. Reports can be filed either via landline or through the FSS website.Swift actions on detected fraudAs part of its policy, the FSS will swiftly inform investigative agencies, like the prosecutors’ office, if an issue raised via the report center is deemed severe or contains specific facts that necessitate further scrutiny.The financial watchdog emphasized its commitment to issuing financial consumer warnings whenever potential fraud is detected and poses a risk to investors. This strategy is designed to safeguard investors and impede the spread of damages.

The Inland Revenue Board (IRB) of Malaysia has launched an operation, which has been dubbed as “Ops Token,” to tackle tax evasion within crypto trading circles in the southeast Asian nation. Klang Valley raids According to the Malaysian English language newspaper, The Star, the special operation is a coordinated effort involving the Royal Malaysia Police and CyberSecurity Malaysia (CSM) alongside the IRB. The Malaysian tax authority raided ten locations, with 38 personnel involved in the raids, which were carried out within the Klang Valley region. The main objective of the raids and the operation overall, is to identify crypto corporate entities and individuals that had failed to report trading activities and therefore, associated revenues, profits and taxes. The initiative aligns with the Malaysian government’s broader strategy of stamping out tax evasion across all sectors, reducing revenue leakage and optimizing the nation’s tax take.Photo by Esmonde Yong on UnsplashStern warning for traders Datuk Abu Tariq Jamaluddin, CEO of the IRB, issued a stern warning to crypto traders: declare and pay taxes or face compliance actions. Jamaluddin clarified that crypto traders are subject to the same income tax rules that are applied to businesses across various sectors throughout Malaysia. While cryptocurrency is not regarded as legal tender by Malaysia’s central bank, crypto-centric businesses must adhere to the nation's income tax regulations. The IRB commented on the operation via a statement published on June 15. It stated: "Through this operation, it was possible to find stored cryptocurrency trading data in mobile devices and computers. We have successfully identified the digital assets that are traded, which has caused significant tax revenue leakage." The agency intends to carry out further analysis on the data that it seized in a bid to ascertain the trading revenues generated, the profits derived from that trading activity and the taxes owed as a consequence. The IRB has asserted that a number of corporate entities and partnerships were specifically formed with the purpose of tax evasion. The agency estimates the total value of crypto-related transactions to date in 2024 to amount to 1.441 trillion Malaysian ringgits, approximately $310 billion. International enforcement efforts Malaysia is not alone in its efforts to ensure tax compliance relative to cryptocurrency trading and investing. The Organization for Economic Cooperation and Development (OECD) has established a set of crypto tax rules, namely the Crypto-Asset Reporting Framework (CARF). The initiative is part of an effort to achieve a Common Reporting Standard (CRS) relative to crypto on an international basis, with OECD member states transposing the CARF into domestic law. The CARF is due to go live in 2027. The International Monetary Fund (IMF) maintains that crypto presents itself as a major headache for tax authorities globally. In a research paper published last year, it outlined that countries would need to update their tax systems in order to deal with the challenge that crypto presents with the potential for a leakage in tax revenues. In the United States, an Internal Revenue Service (IRS) official stated in December 2023 that the agency has seen an increase in its caseload relative to crypto tax cases.