HashKey & Bosera launch world’s first tokenized money market ETFs

Korean Experts Advocate for Global Crypto Info Exchange to Combat Tax EvasionIn a recent event held to discuss the tax regime in South Korea, law professors offered a suggestion to combat tax evasion associated with cryptocurrencies. They proposed the implementation of a global cryptocurrency information exchange system for more effective response measures.Kim Beom-jun, a professor at the University of Seoul Law School, and Kim Seok-hwan, a professor at Kangwon National University Law School, delved into this matter last Friday at the tax administration forum that took place at the Korea Federation of Small and Medium-sized Enterprises (KBIZ).Photo by Karolina Grabowska on PexelsRising crypto adoptionAccording to their report, the cryptocurrency market is currently facing challenges stemming from the Terra-Luna incident and the broader economic downturn caused by rising interest rates and inflation. However, it’s worth noting that in Korea alone, there are approximately 6.27 million cryptocurrency exchange users, with a collective market capitalization of around KRW 19.4 trillion ($14.6 billion). This suggests that cryptocurrencies continue to integrate into our everyday lives.Crypto tax starting in 2025Starting in 2025, South Korea is set to impose taxes on income from cryptocurrency trading. However, before the tax is put into effect, there is a pressing need for administrative enhancements aimed at preventing tax evasion involving cryptocurrencies. These initiatives encompass the development of crypto-tracking technology and the allocation of sufficient staff and budgets to enable tax authorities to effectively address crypto-related issues.Foreign exchanges and DeFi platformsDuring the forum, experts voiced concerns about the possibility of tax evasion through the use of overseas crypto exchanges and decentralized platforms.Tax specialists pointed out that it’s difficult to expect people to fully meet their tax obligations when they’re trading on international exchanges. They also emphasized the challenges in collecting accurate tax information from crypto users who report transactions in overseas financial accounts.OECD’s initiativeIn August 2022, the Organization for Economic Co-operation and Development (OECD) gave the greenlight to the Crypto-Asset Reporting Framework (CARF). This framework aims to standardize the reporting of tax information related to crypto-asset transactions and facilitate the automatic exchange of such information. During the forum, researchers proposed that in the future, if Korea decides to participate in the OECD’s CARF, it should not only establish a cooperative system between virtual asset service providers (VASPs) and regulatory authorities but also revisit and amend pertinent laws.Additionally, presenters at the forum underlined the necessity of obligating taxpayers to furnish essential tax information for effective virtual asset taxation. They also stressed the importance of implementing appropriate sanctions in cases where taxpayers fail to comply with these reporting requirements.Commissioner Kim Chang-ki of the National Tax Service (NTS) stated that the agency is committed to enhancing tax accountability and transparency. He added that the NTS will take strong measures against malicious tax evasion activities, especially those involving online platforms.Furthermore, Commissioner Kim mentioned that the tax agency is boosting its investigative capabilities using scientific methods to combat emerging forms of tax evasion, like those related to virtual assets. He also said the NTS is expanding its international collaboration and devising other measures.

When Samsung Securities surveyed its high-net-worth clients about which investment assets they believed would be most effective for wealth growth in the future, only a small fraction, 1.9%, pointed to virtual assets, as reported by South Korean news outlet Newsis. The majority favored domestic and foreign stocks, which garnered a significant 45.4% of the vote. Following this, domestic and foreign bonds were chosen by 18.1% of respondents, and real assets like real estate and gold were also considered favorable, with 16.8% backing these options.Photo by Lukas on PexelsInvestment preferences of high-net-worth clientsThe survey conducted by Samsung Securities involved a select group of 368 participants, each with assets totaling KRW 3 billion ($2.3 million) or more. It focused on their perspectives regarding this year’s stock market trends and their individual investment strategies. This specific demographic provided insights into the investment preferences and outlooks of high-net-worth individuals. In the survey, when these individuals were queried about the methods they’ve used to accumulate their wealth, the most prevalent answer was investment in financial instruments such as stocks and funds, with 35.9% indicating this as their primary method. Business income was the second most common source of wealth, cited by 29.9% of participants. Wage income was also a significant contributor, mentioned by 19.6%. Additionally, gifts and inheritance played a role, accounting for 7.1% of wealth growth. Meanwhile, real estate investments were the least common, with only 6.5% of the respondents identifying it as a key wealth growth strategy. Regarding the optimal timing for stock purchases this year, a notable portion of the investors expressed a preference for the beginning of the year, with many pinpointing the first quarter as the ideal time, as indicated by 51.6% of respondents. This preference was followed by the second quarter, favored by 27.7%, the third quarter at 13.6% and the fourth quarter being least favored with only 7.1%. In terms of promising industries for investment, over half of the respondents, 50.6%, identified artificial intelligence (AI) and semiconductors as the most prospective sectors. These technologies are viewed as pivotal in shaping the future of the tech industry. Following AI and semiconductors, rechargeable batteries, which were the top-performing segment in the previous year, garnered notable interest, with 16.7% of respondents favoring them. The survey identified key figures likely to impact the stock market this year: former U.S. President Trump (30.4%), U.S. Federal Reserve Chair Powell (15.8%), U.S. President Biden (7.1%) and Saudi Prime Minister Mohammed bin Salman (3.3%). Business leaders like Tesla’s Elon Musk (6.0%), OpenAI’s Sam Altman (5.4%) and Novo Nordisk’s Lars Fruergaard Jorgensen (2.4%) were also mentioned for their influence. When asked about the most important issue of the financial market for the new year, 51.1% pointed to “interest rate cuts in major economies” as their top concern. Following this, 15.2% highlighted the outcome of the U.S. presidential election as a significant issue. Additionally, the advancement of new industries such as AI and robotics was flagged as an important topic by 10.3% of those surveyed. Stock market experts’ crypto optimismIn contrast, a 2024 stock market outlook survey by local media outlet Money Today, which polled 225 stock market experts, showed a more optimistic stance towards investing in cryptocurrencies this year. When questioned about their willingness to invest in crypto assets like bitcoin, 20% responded very affirmatively, and an additional 34.2% expressed a similar interest, totaling over half of the respondents showing readiness to invest in cryptocurrencies. Meanwhile, 18.7% were unsure, and 27.1% had negative views, including 16.4% saying “no” and 10.7% opting for “strongly no”. In the newspaper survey, when specifically asked about bitcoin’s future value, 24.9%, the largest group of respondents for this question, predicted that bitcoin’s price would reach or exceed KRW 70 million, the highest estimate provided in the survey’s options. Meanwhile, 17.8% of the experts estimated that the price would range between KRW 60 million and 70 million. 

A recent survey of South Korean crypto investors showed a modest shift toward a more positive short-term view on Bitcoin, although market data since the poll was released has yet to strongly support that outlook. The regular survey, conducted last week by CoinNess and Cratos, found that 44.8% of Korean respondents expected Bitcoin to rise or surge this week, up from 35.2% in the previous survey.Photo by Jievani Weerasinghe on UnsplashThe share of respondents expecting Bitcoin to move sideways fell to 28.3% from 33%, while those forecasting a decline or sharp drop decreased to 26.9% from 31.8%. The figures indicate that bullish responses increased from the previous week, while neutral and bearish responses declined. However, with several days having passed since the survey was released, Bitcoin’s price action has so far offered a more cautious picture. At the time of writing, Bitcoin was trading at $77,085.07, down 1.14% from a week earlier, according to CoinMarketCap. The survey also showed that investors remain wary of the broader market environment. Asked how recent macroeconomic uncertainty and market volatility had affected the difficulty of crypto investing, 40.5% said it became “much more difficult,” and 35.3% said it became “somewhat more difficult.” That means roughly three-quarters of respondents said crypto investing has become harder than before. Another 16.6% said conditions were little changed, while 7.6% said investing became easier. GIWA Chain targets cross-border financeWhile retail investors appear cautious about the near-term market backdrop, major Korean firms are continuing to push ahead with blockchain projects tied to cross-border finance. Dunamu, the operator of Upbit, South Korea’s largest crypto exchange, said it has signed a memorandum of understanding (MOU) with Hana Financial Group and POSCO International to develop services for overseas remittances, payments, and corporate treasury management. The project brings together Dunamu’s layer-2 blockchain, GIWA Chain, Hana Financial Group’s foreign exchange network, and POSCO International’s global supply-chain platform. The companies said the collaboration will focus on faster international transfers, more efficient corporate fund management, and new digital finance services. The firms also plan to test whether some processes currently handled through the SWIFT network can be moved onto GIWA Chain. Coinone sanctions put on hold by courtOn the regulatory front, a court has temporarily halted enforcement of sanctions against crypto exchange Coinone, after the Korea Financial Intelligence Unit (FIU) ordered a fine and partial business restrictions over alleged anti-money laundering (AML) violations. The measures had been set to take effect on April 29. According to the Maeil Business Newspaper, the court said the stay would remain in effect until May 29 while it considers Coinone’s request to suspend the sanctions. It stressed that the decision was provisional and did not constitute a final ruling on the request. Earlier this month, the FIU, South Korea’s financial intelligence agency under the Financial Services Commission (FSC), imposed a KRW 5.2 billion ($3.52 million) administrative fine on Coinone for alleged violations of the country’s financial transactions law. The regulator also ordered a three-month restriction on virtual asset transfers for new customers, covering both deposits and withdrawals.