Korean banks cooperate with Polish counterparts in digital finance and blockchain

Japan's Financial Services Agency (FSA), the nation's primary financial regulator, has recently proposed a series of measures aimed at safeguarding users against "unlawful transfers" to cryptocurrency exchanges. This move, however, may pose significant challenges to the peer-to-peer (P2P) transactions market. Bolstering user protection measuresCiting findings from the National Police Agency, which highlight that damages resulting from specialized fraud involving unlawful money transfers are predominantly facilitated through cryptocurrency, the FSA has urged financial institutions to bolster user protection measures. The agency emphasized the importance of assessing risks associated with transfers to crypto-asset exchange service providers. In a request published on Wednesday directed towards Japanese banks, the FSA underscored the persistently high incidence of fraudulent transactions in the country, facilitated through crypto. To address this concern, the FSA and the National Police Agency have proposed various initiatives. One such initiative entails directing banks to enhance monitoring of unlawful transfers to cryptocurrency exchange service providers.Photo by Jayjayli on UnsplashPeer-to-peer (P2P) market implicationsHowever, another proposal from the regulator may have a profound impact on the P2P market. The FSA suggests halting transfers to cryptocurrency exchange service providers if the sender's name differs from the account name. This recommendation, explained in the Japanese version of the press release using the term "reject," implies the suspension of such transfers from both individual and corporate accounts. For users of P2P platforms, where transactions often involve different names between the sender's and receiver's fiat and crypto accounts, this directive could significantly disrupt the market. Rejecting transactions from an individual's bank account to another individual’s crypto wallet could undermine the functionality of P2P transactions. Positive crypto developmentsDespite this potential issue needing to be clarified and resolved and the East Asian nation not having a comprehensive regulatory framework for cryptocurrencies in place, Japan is showing indications of gearing up for broader adoption. The Bank of Japan (BoJ) is preparing to pilot a Japanese central bank digital currency (CBDC) pegged to the Japanese yen.In June of last year, the country established a legal framework for stablecoins. Additionally, the FSA has proposed a legislative amendment to support the development of decentralized autonomous organizations (DAOs) in Japan. The proposed amendment aims to designate potential DAO tokens as "Limited Company Type DAO Employee Rights Tokens," granting holders legal rights akin to regular limited liability company (LLC) members. Last December the Japanese government considered and later acted on revising crypto tax policy to exempt unrealized crypto gains from being taxed. This proposal was originally put forward by the FSA earlier in 2023. In another development, authorities in the city of Kochi signed an agreement on Feb. 7 to virtualize the city on the Start Lands metaverse application, with plans to welcome online tourists later this summer. Despite these most recent recommendations from the FSA potentially signaling a less crypto-friendly stance, the Japanese authorities have otherwise demonstrated that they’re working towards creating workable conditions for the development of crypto and Web3 within the country.

Coins.ph partners with Paxos to further PYUSD adoptionCoins.ph, the Philippines’ leading cryptocurrency exchange, has forged a strategic alliance with Paxos Trust Company, a New York-based institution specializing in blockchain, aiming to propel the adoption of PayPal USD (PYUSD) for seamless cross-border remittances.Photo by C Bueza on UnsplashTargeting fourth largest remittance marketThe Southeast Asian firm outlined details of the partnership via a blog post published to its website on Tuesday. The integration of PYUSD into Coins.ph marks a significant milestone, providing Filipinos with a secure and convenient avenue for transferring funds across borders to their loved ones. Wei Zhou, CEO of Coins.ph, emphasized the foresight in prioritizing the growth of USD stablecoins, particularly PYUSD, acknowledging the Philippines as the fourth largest remittance-receiving country globally, with over 40% of these remittances originating from the United States. Zhou stated:“With PayPal behind it and its availability on platforms such as Venmo and Xoom, PYUSD is set to become one of the most widely used stablecoins in the world.”PYUSD is a U.S. dollar stablecoin promoted by American multinational payment system PayPal and issued by Paxos.Nick Robnett, Senior Director of Customer Success at Paxos, echoed Zhou’s sentiment, stating that PYUSD stands as the safest dollar-backed stablecoin accessible to global institutions and consumers. This regulated digital asset enables Coins.ph users to send U.S. dollars swiftly and affordably, challenging conventional remittance networks and providing enhanced access and economic freedom.Asian expansionThis latest collaboration in the Philippines comes hot on the heels of similar in-roads made elsewhere in Southeast Asia. In Singapore, Paxos has partnered with Crypto.com, an entity that is headquartered in the city-state. The local regulator, the Monetary Authority of Singapore (MAS), had outlined a new regulatory framework for stablecoins in August, making conditions right for Paxos to further develop its PYUSD offering from that location.It got a further boost last week when MAS awarded its local subsidiary, Paxos Digital Singapore Pte. Ltd., in-principle approval to trade within Singapore. The relatively new stablecoin has already been listed on international crypto exchanges such as Bitstamp, Coinbase and Kraken.Philippine potentialThe Philippines is shaping up to have a lot of potential for Paxos and its PYUSD stablecoin. The country has been working on the publication of a regulatory framework for crypto. Coins.ph Head of Legal Compliance, Robert De Guzman, stated in April that the Southeast Asian country was shaping a progressive crypto regulatory framework. Earlier this year, Donald Lim, the Founder of the Blockchain Council of the Philippines (BCP), said that the country was poised for crypto adoption.For users keen on employing PYUSD for remittances, the process is streamlined. Senders transmit PYUSD to the designated Coins.ph wallet address of recipients, from where easy conversion to the Philippine peso (PHP) on the app and subsequent cash-out becomes possible. This can be facilitated through InstaPay or PESONet fund transfers to banks and other e-wallets or through various supported over-the-counter remittance centers endorsed by Coins.ph.

Speaking at the World Economic Forum in Davos, Hong Kong Financial Secretary Paul Chan Mo-po said digital assets should support the real economy, but only within a framework of strong safeguards to protect financial stability, market integrity, and investors.Photo by Ruslan Bardash on UnsplashAccording to the South China Morning Post, Chan addressed a closed-door workshop on Jan. 20, where he highlighted the advantages of digital assets, including greater transparency, improved risk management, and more efficient capital movement. Reviewing milestones in the city’s crypto sector, Chan said that since 2023, Hong Kong has issued three tranches of tokenized green bonds worth a combined $2.1 billion. He also pointed to a Hong Kong Monetary Authority pilot launched last November that enables real-value transactions using tokenized deposits and digital assets. Chan added that the city’s stablecoin licensing regime is progressing, with the first licenses expected in the first quarter. Same risks, same regulationsWhile emphasizing the necessity of financial innovation, Chan highlighted Hong Kong’s regulatory philosophy, which dictates that identical activities posing identical risks must be subject to identical regulations. He explained that this approach is designed to promote healthy, responsible, and sustainable sector development, reiterating that protective measures against financial instability remain mandatory. As Hong Kong officials continue to promote the city’s digital asset push on the international stage, a local industry body has cautioned that proposed licensing frameworks for crypto trading, advisory, and management services may have unintended consequences if rolled out without transitional measures. Industry group calls for grace periodAccording to Cointelegraph, the Hong Kong Securities & Futures Professionals Association (HKSFPA) said in a submission to regulators that existing market participants could be compelled to halt operations under the new rules unless a grace period is provided. The association called for a transitional deeming arrangement of six to 12 months for firms that file licence applications before the regulations formally take effect. No definitive start date has been set for the planned virtual asset regulatory regimes, which remain under consultation. Two days before issuing those comments, the HKSFPA had cautioned that the planned introduction of the Organisation for Economic Co-operation and Development’s (OECD) Crypto Asset Reporting Framework (CARF) and related Common Reporting Standard (CRS) amendments could create new operational and legal risks for local firms. The group said it supported the policy direction in principle but warned that uncapped per-account penalties and open-ended director liability could raise compliance risks, urging regulators to introduce clear caps and legal safeguards. The association also called for lighter requirements for entities with no reportable activity, the development of data file preparation tools from both the industry and the Inland Revenue Department (IRD), and the ability to transfer record-keeping responsibilities to third parties upon dissolution. Elsewhere in the region, Japan implemented the CARF on Jan. 1, 2026. Users of Japanese exchanges must now declare tax residence, while operators are required to submit transaction data—including trading volumes and asset breakdowns—to tax authorities by April 30 of the following year. Data regarding non-resident users is expected to be shared with foreign authorities under international agreements. Other jurisdictions are following suit, with India planning to adopt the framework by 2027.