FOBLGATE gears up for the launch of real estate security tokens

The South Korean National Tax Service (NTS) is reportedly in the process of setting up virtual asset accounts for its district offices. This initiative is aimed at confiscating and liquidating the digital assets of individuals who fail to pay their taxes. This move comes after the creation of similar accounts by public prosecutors' offices, leading to speculation in the crypto industry that virtual asset accounts will soon be allowed for corporate entities as well.Photo by Nataliya Vaitkevich on PexelsDirect confiscation of virtual assetsA report by the local news outlet Etoday today has revealed that each district office of the NTS is working towards establishing a virtual asset account. This development will empower the tax agency to directly sell virtual assets confiscated from tax delinquents. Previously, the NTS would freeze the accounts of overdue taxpayers at Korean cryptocurrency exchanges, compelling them to convert their assets into Korean won. These funds were then confiscated by the NTS. The new initiative is set to streamline the process, enabling the tax authority to directly confiscate virtual assets without the intermediary step of conversion to Korean won. Speaking about this development, an NTS officer said that as each district office director holds the authority to collect taxes from taxpayers with overdue payments, it's necessary for each office to have its own account. Prosecutors’ Offices’ Upbit and Bithumb accountsThe crypto industry views this development as a potential step towards allowing the creation of virtual asset accounts for corporate entities, starting with government agencies. In December, the prosecutors' offices established their entity accounts at major cryptocurrency exchanges Upbit and Bithumb. Since then, the prosecution has utilized these accounts to sell confiscated virtual assets, aiming to recover funds that had not been collected.  An official from a cryptocurrency exchange indicated that the South Korean government is currently focusing on allowing entities that serve the public good to own virtual asset accounts. This approach is seen as the starting point, with expectations that the trend will gain momentum in the future. The official added that it's rare for the government to provide blanket permissions from the outset, suggesting a gradual and cautious approach to the integration of virtual asset accounts.Money laundering concernsMeanwhile, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC), along with other financial regulators, has remained silent on the matter of virtual asset accounts for corporate entities. This reticence stems from concerns with the financial authority that the introduction of corporate crypto accounts could potentially lead to money laundering and the creation of slush funds. An official from the National Assembly’s National Policy Committee said that they have not received any comments from the financial authority in response to inquiries about plans to allow such accounts for corporate entities. The current law doesn’t prohibit corporate entities from trading virtual assets. However, under the auspices of the financial authority, banks have refrained from offering real-name accounts to corporate entities. This policy has been a point of contention within the crypto industry. Advocates argue that allowing corporate accounts could mitigate issues of market manipulation and challenge the dominance of Upbit in the Korean cryptocurrency market.  The official from the cryptocurrency exchange pointed out that the financial authority does not have a clear legal basis for prohibiting the creation of corporate crypto accounts. They suggested that the regulator should develop clearer guidelines and enforce these rules for corporate entities. More serious discussions in AprilMore serious discussions about the introduction of corporate crypto accounts are anticipated to take place in April, following the conclusion of the general election. Last month, the main opposition party, the Democratic Party of Korea, made election promises to open the crypto market to institutional investors. Meanwhile, the ruling People Power Party has been quietly deliberating on virtual asset policy. Despite these political movements, earlier reports indicate a disconnect between the political parties' efforts to relax crypto regulations and the financial regulator's stance. Meanwhile, Hwang Seok-jin, a professor at Dongguk University’s Graduate School of International Affairs and Information Security, expects to see a conclusion on the permission of corporate crypto trading by the end of this year. He said that there has been ongoing discussion about the approval of spot Bitcoin exchange-traded funds (ETFs) and that allowing the trading of such funds requires the ownership of virtual assets by institutions. 

Terraform Labs Co-Founder Daniel Shin Denies Wrongdoing in LUNA CollapseShin Hyun-seong, popularly known as Daniel Shin, has refuted accusations against him related to the $40 billion collapse of the stablecoin TerraUSD and its companion token, LUNA, according to a report by local news outlet Newspim. He presented this defense during his initial trial at the Seoul Southern District Court on October 30 (local time).Shin co-founded Terraform Labs, the company responsible for issuing TerraUSD and LUNA. His co-founder, Do Kwon, is currently serving a four-month prison sentence in Montenegro for passport forgery.Photo by Tingey Injury Law Firm on UnsplashProsecution’s allegationsKorean prosecutors allege that since 2018, Shin and his colleagues have concealed the fabricated nature of the “Terra project.” By manipulating trades and releasing misleading information, they purportedly misled investors into thinking the project was successful. It’s believed they sold off their tokens before the LUNA crash in May 2022, earning KRW 462.9 billion ($343.3 million) from these activities. They are suspected of personally taking KRW 376.9 billion from this amount.Prosecutors are focusing on Shin as the potential orchestrator of the LUNA crash. They speculate he began selling LUNA tokens around when Terraform Labs launched the Anchor Protocol in March 2021. This DeFi protocol increased the popularity and value of LUNA tokens. Before the crash, Shin is alleged to have gained at least KRW 154.1 billion.Defense argumentHowever, Shin’s legal team countered by asserting that Shin had cut ties with Kwon in 2020. They argued the decline of TerraUSD and LUNA was due to Kwon’s mishandling of the Anchor Protocol and an external attack, neither associated with Shin. Regarding the exploit, Terraform Labs has pursued legal action in the United States Southern District of Florida, claiming that American market maker Citadel Securities played a part in undermining TerraUSD in May 2022.Defending Shin, his lawyers emphasized that at the inception of the Terra project, there were no legal guidelines specifically for cryptocurrency transactions. Additionally, unlike Do Kwon who kept fleeing abroad, Shin willingly came back to Korea and has been cooperating with the investigation. They also noted he received only 32% of the 70 million LUNA tokens initially promised. Regarding classification, they stated LUNA isn’t legally recognized as a security.Shin’s lawyers further argued the prosecution hasn’t clearly identified victims or adequately outlined the components of fraud in this case. They said the prosecution’s case hinges on viewing LUNA as a security. However, Shin’s legal representatives maintained that under the Korean Capital Markets Act, LUNA isn’t a security, making its trades non-fraudulent.To counter a US court ruling the prosecution presented — that a token is a security — Shin’s defense highlighted that the verdict is from a lower court and remains contested. Earlier, prosecutors had cited a ruling from the United States Southern District Court of New York, which classified the XRP tokens sold to institutional investors as securities.

Korean Game Company to Reward Female Golfers with WEMIX TokensKorean game company Wemade has teamed up with television channel SBS Golf to reward Korean professional female golfers with WEMIX tokens, according to a Wemade press release.Photo by Allan Nygren on UnsplashWEMIX point systemGolfers participating in the regular tours of the Korea Ladies Professional Golf Association (KLPGA) can earn WEMIX points based on their performance and records. At the end of the 2023 season, the top 60 players in the WEMIX point system will share a total of 500,000 WEMIX, with the player in first place earning 90,000 WEMIX.Golfers can earn WEMIX points in three ways: by ranking in the top 10 for each tour, advancing to the final round of each tour and earning points based on the number of strokes for each hole, or consecutively ranking in the top 10 for tours. Meanwhile, golfers who don’t make the cut may face penalties.Sports NFTsThe top 60 players in the WEMIX point system will receive sports NFTs, which can be exchanged for WEMIX tokens any time after a certain date.For the gallery, Wemade’s NFT platform NILE marketplace will feature NFTs corresponding to the top 60 players in the WEMIX point rankings.More intensified competitionAn SBS Golf official expressed excitement about the new point system for KLPGA players. The extra rewards are expected to spark more intensified competition and provide fans with unique experiences, contributing to the promotion and development of the league.Wemade has stated that this initiative is just the beginning, and that the company plans to continue developing innovative ways to provide new experiences to players and fans across various sports in the future.