Japan orders Apple, Google to remove unregistered crypto exchange apps

The Need for Crypto Regulation Improvements in South KoreaAlthough the cryptocurrency market entered a bearish phase last year, there are prospects for growth as regulatory inclusion and market transparency begin to improve. However, the domestic market is currently hindered by deepening monopolies and inadequate support policies, limiting the development of the industry, said Kim Jin-won, Executive Director of Korean crypto exchange COREDAX, during a conference last Friday in Seoul.The conference, hosted by the Federation of Korean Industries, invited experts to discuss the oncoming era of convergence and the current status and challenges of virtual asset legislation in South Korea, as well as the necessary steps for improving regulations on virtual assets.Photo by Kanchanara on UnsplashGlobal decentralization trendsOverseas, various decentralized projects, such as the integration of blockchain technology into traditional financial markets, have led to the growth of related markets such as Bitcoin futures, decentralized finance (DeFi), over-the-counter (OTC) trading, custodial services, the metaverse, and Web3. However, in Korea, the lack of clear guidance or policy management for crypto businesses and services prevents the market from thriving.Countries like the US and Japan as well as the European Union (EU) are overhauling regulations in order to dominate the global industry and market through blockchain technology and virtual assets. Kim emphasized that Korea also needs to incorporate such flexible regulatory improvements considering the likely possibility that various industries are going to thrive on crypto-related businesses.Challenging existing regulations and calls for clarityHe started off by stating that the implicit regulation known as the “One Exchange, One Bank” principle was created for administrative convenience and is acting as a barrier to entry into the crypto industry. He argued that it is a discriminatory regulation, especially considering the fact that securities firms choose to operate stock trading accounts through multiple banks.Regarding the standards for issuing bank accounts under real names, which will be determined by the Financial Intelligence Unit (FIU), he argued that they are difficult to comply with, even for banks that already have contracts with crypto exchanges. He called for the FIU to express a clear stance on the retroactive application of these standards to avoid potential consequences such as barriers to market entry for late-movers.“The crypto market — including DeFi, non-fungible tokens (NFTs), artificial intelligence (AI), the metaverse, and Web3 — is growing at an annual average rate of 12.8%, and is expected to reach a scale of $4.9 billion by 2030,” he said. “When combined with Web3 innovation, the metaverse will evolve into a 3D platform business that incorporates the use of payment methods, NFTs, and virtual assets.”Promoting innovation in the crypto industryTo foster such industry growth, it is necessary to actively explore new types of services as well as potential challenges. Innovative financial services should also be designated or promoted through regulatory sandboxes. The regulatory sandbox is a system run by the Korean government that exempts or suspends existing regulations for a designated amount of time for companies releasing new products and services and regulates them post-mortem if there is a problem.Kim went on to propose specific measures such as negative regulations — regulations that outline what is prohibited by law while allowing everything else — to promote new industries. He also suggested that banks should be allowed to engage in custodial services for virtual assets.Furthermore, he highlighted the need for cooperation between payment companies and crypto firms. “Payment service providers like Visa and Mastercard are already collaborating with global crypto exchanges to incorporate virtual assets into their businesses,” he said. “With companies like Tesla, eBay, and more adopting or considering adopting cryptocurrency as a payment method, we must consider allowing collaborations between domestic credit card companies, payment gateway companies, and crypto firms.”He also urged for the early approval of initial exchange offerings (IEOs) to stimulate the crypto market and advocated for support policies for virtual asset service providers (VASPs). He cited examples such as brokering transactions for security tokens, allowing OTC trading, requesting security token issuance assessments through system integration with account management agencies, and permitting outsourcing for issuance operations.

SK Planet Teams Up with T1 for LoL NFT Event: ‘The Hero’s Journey’SK Planet, the data and tech subsidiary of South Korean conglomerate SK Group, announced last week that it is conducting a non-fungible token (NFT) event called “The Hero’s Journey.” This event is a collaborative effort with T1 Entertainment and Sports, the company behind League of Legends (LoL) team T1. T1 Entertainment and Sports is a global esports joint venture established by American company Comcast Spectacor and SK Telecom, the telecommunications subsidiary of SK Group.This event coincides with the 2023 League of Legends World Championship (Worlds 2023), taking place in Korea from October 10 to November 19 (local time).Photo by RDNE Stock project on PexelsMission-based adventureThe NFT promotion, running until December 3, promises a unique and rewarding experience for users. LoL and NFT enthusiasts are encouraged to complete five missions and earn NFTs at various physical locations related to T1, a participant in Worlds 2023.These locations include T1’s headquarters, Base Camp, Café & Arena, and HiKR Ground. To complete their missions, visitors can collect stamps from each site, sign up for a T1 membership, and either attend a Worlds 2023 game at the stadium or join the viewing party.Anyone who has downloaded UPTN Station, the digital wallet launched in June by SK Planet, can join this promotional event, with the chance to receive rewards for each completed mission. Rewards include NFTs of LoL players like Lee “Faker” Sang-hyeok and Choi “Zeus” Woo-je, discounts on T1 memberships, vouchers for the T1 HQ SHOP, and free drink coupons.Upon completing all five missions, participants will automatically be entered for a chance to win various prizes. These include AVAX tokens, player-signed jerseys, tickets to T1 CON — a fan meet-up with T1 players — and a T1 Bap invitation, which gives fans the opportunity to tour the T1 headquarters and enjoy a meal on-site.SK Planet’s NFT commitmentLately, SK Planet has been actively undertaking NFT endeavors. In June, it introduced an NFT membership program named “Road to Rich,” capitalizing on OK Cashbag, which is the popular customer rewards program of SK Planet. This was followed by the debut of a blockchain-centric ticketing service, developed in partnership with layer 1 blockchain protocol Avalanche. Looking ahead, SK Planet aims to provide an even broader range of practical utility NFTs.Commenting on their latest project, Kim Kyo-soo, who leads the customer experience division at SK Planet, shared his excitement about collaborating with T1, one of the world’s most popular esports teams. He sees the use of NFTs in this event as a meaningful way to connect with fans in person. Kim anticipates a strong response and active participation from the esports community.

Overseas Crypto Holdings Declared to Korean Tax Agency Amount to $98BIn a recent press release from the South Korean National Tax Service (NTS), it was revealed that this year, a record 5,419 Koreans declared overseas financial assets amounting to KRW 186.4 trillion. This is a notable jump from the previous year, marking a 38.1% rise in the number of declarants and an impressive 191.3% increase in the declared amount.Photo by Traxer on UnsplashRecord-breaking declarationsThese are the most significant figures reported since the 2011 inception of the overseas financial account reporting system, which requires Korean individuals and entities to disclose their foreign financial holdings, like savings, stocks, collective investment schemes, and derivatives, if their balance exceeds KRW 500 million.The NTS attributed the record-breaking figures to foreign crypto accounts, a new addition to this year’s overseas account declaration.Crypto’s dominanceVirtual assets comprised a staggering 70.2% of the total declared amount, overshadowing all other assets. 1,432 individuals and corporate entities reported crypto holdings amounting to KRW 130.8 trillion (approximately $98 billion).Decline in non-virtual assetsFor non-virtual asset accounts, including deposits, savings, and stocks, the reported figure stood at KRW 55.6 trillion, marking a year-on-year drop of KRW 8.4 trillion, or a 13.1% decline.Call for complianceIn the future, the NTS plans to leverage data shared between countries to rigorously check for potential non-compliance in reporting overseas financial accounts. Those suspected of omissions can expect strict actions, including fines, criminal charges, public name disclosure, and the collection of related taxes.After the reporting deadline, filers may be eligible for a penalty reduction of up to 90%. Importantly, tax agencies worldwide, including the NTS, are gearing up to share information like cryptocurrency transaction details under the Crypto Asset Reporting Framework. In light of this, the NTS strongly encourages those who haven’t yet reported but are obligated to to promptly declare their overseas virtual asset accounts.