Malaysia launches operation to clamp down on crypto tax evasion

Amber Group Targets Trust in Web3 Via Thoughtworks PartnershipSingapore-based Amber Group, a leading digital asset service provider in crypto-related infrastructure, products and trading, has announced a partnership with global technology consultancy Thoughtworks.© Pexels/Palu MalerbaAI-led product offeringThe strategic partnership has been formed between the two entities in an effort to develop innovative security solutions that can enhance transparency and trust in Web3. It’s envisaged that in meeting this objective, product development will rely heavily on artificial intelligence-based technology.In a press release on Wednesday, Amber Group’s Head of Web3 Security, Dr. Chiachih Wu, said that the partnership allows the firm to provide its clients with “even more comprehensive and cutting-edge security solutions, such as automated software testing and AI-powered vulnerability detection.”Leveraging software design and security expertiseSong Zhang, Global Service Lines Lead at Thoughtworks believes that in order to advance the development of a next-gen internet, Web3 has to use “sophisticated engineering practices and scientific methods to address crucial issues caused by decentralization.” Zhang cites issues such as compliance, privacy and security. He believes that through the collaboration both firms can contribute to leverage their respective software design and security expertise, and in that way, tackle these challenges.“By using new technology and tools, we aim to create applications and new standards that promote the construction of a healthy, transparent, open, inclusive and responsible Web3 ecosystem,” he stated.Strategic realignmentThis is not the first strategic departure Amber Group has taken recently. Earlier this month the Singapore-based firm was said to be mulling over the sale of its Japanese crypto lending subsidiary. It’s understood that the proposed move would help the company to streamline its operations and focus on its core markets.Launched in 2018 as a joint venture with Japanese financial services conglomerate SBI Group, the Amber Japan crypto lending business had failed to gain traction in a difficult Japanese market.The firm acts as a liquidity provider, miner and validator on over 70 digital asset exchanges, applications and networks. Earlier this year it took the decision to cut headcount, in the process reducing staffing at its Hong Kong office by 40. Last December the firm shuttered WhaleFin, its crypto exchange business.The collapse of crypto exchange FTX in November 2022 had a knock-on effect on some of the firm’s products and customers. 10% of its trading capital was held with FTX when the exchange collapsed. Additionally, a number of the firm’s products would have experienced significant drawdowns without the company taking action. In response, Amber raised $300 million in a Series C funding round to overcome that challenge.Those events are likely to have been key in terms of the company subsequently taking a strategic approach of focusing on core business operations and partnerships like this one that it has just announced with Thoughtworks. Undeterred by the challenges, the company still focuses on becoming a category leader in the industry.

Taiwanese prosecutors have expanded their inquiry into ACE Exchange, urging the detention of Chenhuan Wang, the platform's president and partner at Chien Yeh Law Offices. The Taipei District Prosecutors Office disclosed to The Block that Wang, alongside four other suspects, was summoned after police raids in Northern Taiwan earlier this month. Subsequent to the interrogation, prosecutors sought Wang's detention and restrictions on visitation rights, alleging his involvement in money laundering and fraud linked to the activities orchestrated by the detained founder, David Pan. Chien Yeh Law Offices has moved to distance itself from its partner’s activities, stating that the matter is a personal investment of Wang’s. It stated:”Ace Digital Innovation Co., Ltd. is the personal external investment affairs of lawyer Wang Chenhuan and has nothing to do with the firm.”Photo by Thomas Tucker on UnsplashMisleading advertisingPan, along with colleague Lin Nan, is accused of a three-year collaboration, utilizing misleading social media advertisements to deceive investors into acquiring worthless cryptocurrencies, including MOCT. The inclusion of Wang in the investigation now requires a court determination on potential detention. ACE Exchange responded to Pan's arrest earlier, asserting that Pan had ceased daily operations in 2022, with Wang assuming the presidency in September 2023. Wang claimed to have initiated efforts to delist controversial coins, with ACE assuring cooperation with investigations as a witness. The exchange affirmed the normalcy of trading and operational conditions, emphasizing the security of user assets and smooth cryptocurrency and New Taiwan dollar deposit and withdrawal services. Established in 2018, ACE Exchange ranks among Taiwan's prominent crypto exchanges, alongside BitoGroup and MaiCoin. In spite of alleged wrongdoing relative to key actors within the business, the platform has outlined its commitment to legal principles, stating zero tolerance for any misconduct within its management team. Regulatory focus on offshore exchangesIn the broader context of Taiwan's crypto landscape, the Financial Supervisory Commission (FSC) plans to impose restrictions on offshore cryptocurrency exchanges operating within its jurisdiction, unless they secure required registration. In September last year, the FSC drafted guiding principles for virtual asset service providers (VASPs). These guidelines aim to fortify information disclosure, set review standards for virtual asset listing and delisting and ensure the secure separation of companies' and customers' assets. The FSC intends to strictly prohibit illegal business solicitation by foreign crypto firms, mandating registration and compliance declarations with anti-money laundering regulations. Failure to comply will result in the prohibition of business solicitation within Taiwan or from domestic residents by foreign VASPs. As Taiwanese prosecutors intensify their efforts, the ACE Exchange case unfolds as a critical episode in the evolving regulatory landscape, prompting both legal scrutiny and a reevaluation of the country's approach to crypto oversight.  

Xxsoft, an information technology firm based in South Korea, announced today that it entered a partnership with a blockchain firm Infinite Block, local media outlet Kyunghyang Games reported. Xxsoft is the operator of CryptoTax, a tax and accounting service specializing in crypto assets. The two companies aim to provide crypto custodial and accounting services for companies and enterprises.Photo by Sarah Elizabeth on UnsplashCryptoTax specializes in handling crypto investors’ taxation using algorithms designed to process crypto tax and accounting. These algorithms were developed with participation from tax accountants and accountants with expertise in crypto assets. CryptoTax also offers a solution as a service (SaaS) called Cryptotax Enterprise, which offers corporate clients the advantage of automated tax processing with direct access to accounting documents.  Meanwhile, Infinite Block is a key management service (KMS) provider based in Korea, serving clients ranging from startups to big firms. The company provides crypto wallets catering to individual clients’ needs, from internet-enabled hot wallets to cold wallets that keep private keys offline. Infinite Block employs multi-signature technology and multi-party computation to securely protect clients’ private keys. Rising demand for institutional crypto accountingYoon Dong-hwan, CEO of Xxsoft, said the shift in crypto regulations – as seen in events like the approval of spot Bitcoin ETFs by the U.S. Securities Exchange Commission – will result in higher demand for crypto custodial services compliant with financial authorities. He stated that the partnership with Infinite Block will allow the company to provide a convenient service tailored to the needs of corporate clients.  Jeong Gu-tae, CEO of Infinite Block, highlighted the importance of companies being equipped with a fully compliant internal control system when it comes to crypto taxation and accounting, because firms are subject to stricter regulations compared to individual investors. Jeong reaffirmed the company’s commitment to building a healthy local crypto market, saying that it will continue developing effective crypto asset management systems for corporations in close cooperation with CryptoTax.