Local crypto firms in talks with Hong Kong’s SFC on crypto staking

Samjong KPMG, the South Korean division of global accounting firm KPMG, is gearing up to host a seminar on virtual assets. The event is scheduled for Jan. 5 (KST) and is organized in partnership with Xangle, a Web3 data intelligence platform. Earlier this month, the two entities agreed to collaborate in exploring on-chain data relevant to crypto accounting.Photo by Markus Winkler on UnsplashGrowing crypto marketRecently, there has been a notable increase in the crypto market activity in South Korea, with the daily trading volume of virtual assets surpassing KRW 10 trillion (approximately $7.8 billion), equivalent to approximately $7.8 billion. In response to this burgeoning market, South Korea is looking forward to the implementation of the Virtual Asset User Protection Act in July. Additionally, last week, the country’s financial regulators issued the final version of new guidelines for cryptocurrency accounting and disclosure. In light of these recent developments in South Korea's crypto market, the event organized by Samjong KPMG and Xangle aims to bring together crypto entrepreneurs to discuss strategies for adapting to the new corporate regulations concerning accounting, disclosure and internal control. This seminar will provide an opportunity for stakeholders in the crypto industry to prepare for the upcoming regulatory changes, ensuring compliance and effective management in this evolving financial landscape.From market forecast to taxationIn the upcoming seminar, a series of talks are slated to shed light on the shifting landscape of the cryptocurrency market. The first presentation will feature Junwoo James Kim, Co-CEO of Xangle, who is set to present a forecast for the cryptocurrency market in the next year.  Following Kim's presentation, Park Jong-baek, a Partner at law firm Bae, Kim & Lee, will take the stage. Park's expertise in legal matters will guide the audience through the current and forthcoming regulatory trends in virtual assets. Meanwhile, Choi Yeon-taek, Director at Samjong KPMG, will address the practical aspects of the recently released guidelines for cryptocurrency. His discussion will focus on their application in corporate accounting, disclosure and internal control. Xangle’s Co-CEO Lee Hyun-woo will highlight the importance of complying with disclosure rules for virtual asset information, focusing on aspects like circulating supply. Furthermore, Samjong KPMG’s Director Kim Byung-kook will address taxation issues related to virtual assets.Accounting transparency and investor protectionAccording to a report by local news outlet The Maeil Business Newspaper, Park Sung-bae, the head of the virtual asset business consulting division at Samjong KPMG, expressed optimism about the upcoming seminar’s potential impact. He hopes that the event will play a significant role in fostering a healthy cryptocurrency market. The focus will be on changing regulations that aim to enhance accounting transparency and protect investors, underlining the importance of adapting to these changes. Echoing Park's sentiments, Lee from Xangle emphasized the importance of clear and well-defined regulations for the cryptocurrency market, given that such regulations enhance transparency and help maintain the overall health of the crypto ecosystem. He highlighted that despite various challenges and concerns, the crypto market has continued to grow. Lee expressed his hope that the seminar will be particularly beneficial for individuals and organizations involved in Web3 projects, aiding them in navigating and understanding the evolving regulatory environment.  

Dubai-based Emirates NBD, one of the United Arab Emirates’ (UAE) top banks, has enabled a crypto trading service via its subsidiary bank, Liv Digital Bank. Liv Digital Bank has launched the crypto trading service through its Liv X mobile banking app. App users now have the ability to buy, hold and sell a range of cryptocurrencies. Users will have access to custody solutions. They can control both virtual currencies and fiat currencies from within one application.Photo by Markus Winkler on UnsplashAquanow collaborationThe offering has been brought online through a collaboration with digital assets infrastructure provider Aquanow. Taking to X, Aquanow CEO Phil Sham said that "incumbent institutions like Emirates NBD will play a pivotal role in driving the next wave of digital asset adoption.” Aquanow has acquired the necessary licensing from the Virtual Assets Regulatory Authority (VARA) in Dubai to enable the service offering on a compliant basis. Sham told Cointelegraph that the collaboration “showcases how traditional banking and digital assets can coexist, providing consumers with seamless, secure, and compliant access to the evolving digital economy.” Zodia as digital asset custodianZodia Custody, a virtual asset custodian that serves institutional clients, has been chosen to custody assets held as a result of crypto trading on the app. The custodian, a subsidiary company of British multinational banking group Standard Chartered, launched its service in Dubai back in 2023. Emirates NBD is government-owned and the UAE’s second largest bank. The service will facilitate users in trading Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA) and some other cryptocurrencies. The bank’s Group Head of Retail Banking and Wealth Management, Marwan Hadi, commented on the development, stating: “Offering cryptocurrency on Liv X is the next step towards the overall vision of Liv being a pioneer in innovation and excellence.” He added that “with the highest crypto adoption rate in the UAE, [Emirates NBD is] keen to launch [its] own virtual asset offering to capitalise on this trend.” This is not the first touch point with the crypto sector for the Emirates NBD subsidiary. Last year, Liv Digital partnered with tokenized real-world assets (RWA) firm Ctrl Alt. Accessing Ctrl Alt’s RWA tokenization expertise, Liv is opening investing opportunities for its customers in the area of tokenized assets. In November 2024, Emirates NBD signed up as a member of the Partior Network, the distributed ledger technology (DLT) clearing and settlement network. Partior uses tokenized instruments for the wholesale settlement of cross-border payments in conjunction with correspondent banks. In the past, the Dubai-based bank had made efforts to educate its customers with regard to the benefits of cryptocurrency and blockchain. Last year, American blockchain analysis firm Chainalysis reported that the Middle East and North Africa (MENA) accounted for 7.5% of global digital asset trading volume over the course of 12 months from July 2023 to June 2024. Chainalysis itself chose Dubai to set up its regional headquarters in May 2024.

The Financial Supervisory Commission (FSC) of Taiwan has disclosed its intention to introduce a fresh draft of digital asset regulations for the nation come September 2024. The forthcoming draft bill seeks to establish more robust regulations for digital asset markets, prioritizing investor safety, as announced by Huang Tien-mu, the chairman of FSC. That’s according to a March 4 report by local media outlet, United Daily News (UDN).Photo by Kelly Sikkema on UnsplashAddressing customer protectionIn October, Taiwanese legislators introduced the Virtual Asset Management Bill to parliament, a move aimed at fortifying customer protection and ensuring effective industry supervision. The bill encompasses provisions that could impose fines ranging from two million Taiwanese dollars ($63,000) to 20 million Taiwanese dollars on unlicensed virtual asset service providers (VASPs). Around that time, the authorities had a particular concern with regard to the operation of foreign and offshore VASPs within the Taiwanese market. Like Hong Kong, Taiwan also had seen some negative impact due to the fraudulent activity of the Dubai-based JPEX crypto platform.The FSC has already barred foreign VASPs from operating in Taiwan without requisite approvals from the regulator. These measures were instituted following the establishment of a self-regulatory association by major cryptocurrency exchanges in the country, aiming to foster collaboration with regulators. Stricter regulationsPer the latest report, Chairman Huang Tien-mu outlined the FSC's plan to propose a draft bill targeting virtual currencies in September of the current year. This initiative seeks to bolster investor safeguarding and enhance regulatory oversight over the virtual currency sector. Concern has also been raised relative to native exchanges, in addition to offshore VASPs. In November, an investigation was opened into the Bitgin exchange, amid alleged money laundering activity. Shortly afterwards, another probe was launched into the ACE Exchange, amid allegations of money laundering and fraud. Highlighting the imperative for stricter regulations, Huang underscored the potential fraud risks tied to digital currencies. He issued a stern warning, signaling severe administrative penalties for merchants engaged in fraudulent activities aimed at investors. Moreover, the regulator expressed concerns about the growing interconnection between digital assets and the conventional financial system. He emphasized the need for laws to shield the stability of traditional financial systems from the inherent risks posed by digital assets. Addressing apprehensions regarding the misuse of virtual currencies for fraudulent endeavors, Huang cautioned of stringent administrative penalties awaiting both domestic and foreign currency traders found guilty. ETF considerationsTaiwan's Chamber of Commerce is poised to unveil a study on Bitcoin exchange-traded funds (ETFs) in April. Gao Jingping, Deputy Director of the Securities and Futures Bureau at the Financial Supervisory Commission, indicated Taiwan's contemplation of endorsing spot Bitcoin ETFs under regulatory oversight. However, he advised against investing in foreign crypto-based exchange-traded products. Reports from local media in December suggested that the FSC will closely monitor Bitcoin ETFs to assess their potential and gauge public demand. The FSC intends to release research findings in April, which will influence the fate of Bitcoin ETFs in Taiwan. Positive findings may pave the way for Taiwanese investors to resume acquiring overseas Bitcoin ETFs. This initiative unfolds amid heightened global demand for Bitcoin ETFs, which recently contributed to Bitcoin's surge to almost $69,000.