Japan to implement crypto insider trading restrictions

Global crypto exchange platform Binance has launched “Sharia Earn,” a crypto staking product that has been certified as being Sharia-compliant. Sharia-compliant financial products adhere to Islamic law, with sharia law being Islamic canonical law based upon the teachings of the Koran. The product incorporates multi-token staking featuring BNB, Ether (ETH) and Solana (SOL). The product has been built on top of existing infrastructure which Binance had already used to offer “Simple Earn Locked Products” relative to BNB and liquid staking in the case of ETH and SOL. Users of the product can earn staking rewards on crypto assets, while secure in the knowledge that they are investing in compliance with Islamic finance principles.Photo by Kanchanara on Unsplash‘Most meaningful product yet’The new product was announced by the company during a Binance Square Webinar. Binance CEO Richard Teng described it as the firm’s “most meaningful product yet.” He referred to the launch of the product as a defining moment both for Binance and the broader crypto sector. Teng said that “a truly inclusive financial system must respect the values and needs of every community, and that’s the vision behind Sharia Earn.” He added that “Islamic finance’s core tenets—transparency and shared prosperity—are universal,” asserting that these same values are at play in driving Binance. The platform contracted Amanie Advisors, a Dubai-based global Islamic finance advisory service, in order to obtain Sharia-compliant certification for its latest product. Bader Al Kalooti, Binance’s Head of Operations, Marketing & Growth for the Middle East & North Africa (MENA) region, said that “crypto adoption has surged in many Muslim-majority countries, but yield-generating products have remained largely inaccessible due to compliance concerns.” He claimed that the arrival of “Sharia Earn” addresses this issue. While this is Binance’s first Sharia-compliant product, it’s not the first major exchange to enter this market. Last year, Bybit, a Dubai-headquartered global crypto exchange, engaged with ZICO Shariah Advisory Services in order to obtain certification for the trading of Sharia-compliant digital assets. At the time, Bybit claimed to have launched the world’s first crypto Islamic account. Growing Islamic finance sectorIslamic law prohibits interest-based transactions. Crypto staking can be structured in such a way as to avoid interest. Staking is considered to be acceptable as rewards are not fixed. Staking rewards are seen as profit-sharing, with the staker retaining ownership of the asset and being open to the risk of potential losses. Some forecasts suggest that the overarching Islamic finance sector could reach $4 trillion in the years ahead. That represents a market opportunity for crypto platforms to cater to this market by taking the time to acquire Sharia-compliant certification for their crypto products. Binance and Bitget are not the only entities to spot this market opportunity. A new crypto trading platform called BurjX, founded by Canadian entrepreneurs Adam Ferris and Omar Abbas, has been established in the United Arab Emirates (UAE) with a vision of developing Sharia-compliant and regulatory-compliant crypto products.  While no definitive timeline has been established, Abbas told the UAE English language daily newspaper, the Khaleej Times, that his company “will partner with the appropriate Sharia boards, and when we do launch, it’s going to be approved by the appropriate regulators.”

Bitstamp, regarded as the longest-running cryptocurrency exchange in the business, declared on March 6 that it has obtained in-principle approval for a license to function as a Major Payment Institution (MPI) from the Monetary Authority of Singapore (MAS).Photo by Zhu Hongzhi on UnsplashFirst major Euro exchange in SingaporeThis preliminary approval, a precursor to a full-fledged license for operation in Singapore, marks a significant milestone for Bitstamp towards offering digital payment token services within the city-state. According to the exchange's press release, it's the first crypto trading platform with a substantial presence in the European Union (EU) to secure such approval from MAS. The nod from Singapore’s financial regulator arrives amidst notable regulatory strides in the crypto domain, including the European Union’s rollout of the Markets in Crypto-Assets (MiCA) framework and the green light given by the U.S. for Bitcoin ETFs. Focusing on AsiaBitstamp's strategic focus on the Asia Pacific region, with Singapore as its central hub, underscores its focus in delivering services to both institutional and retail clientele across the region. The firm’s intent in this regard became clear in August of last year when Bitstamp sought capital funding to enable it to extend the platform’s reach into various markets across Asia. Whilst the company’s origins can  be traced back to Slovenia, it has since developed further ties with Asia. In 2018, the company was acquired by NXMH, a subsidiary of South Korea’s NXC Corporation. The same holding company owns Korean crypto exchange Korbit. Compliance strategyWhile the licensing is quite the achievement, the company already boasts a robust regulatory track record, surpassing the 50-license mark across key markets such as Luxembourg, the Netherlands, Italy, Spain, France the United States (with coverage in 40 states including New York, Washington, Texas and Florida) and the United Kingdom. In its press release the company referred to its ever-growing licensing collection, outlining that “compliance and regulation [are] at the heart of all operations.” Leonard Hoh, Bitstamp's APAC General Manager, lauded Singapore's proactive stance in establishing a regulatory framework for crypto exchanges, positioning the city-state as a pivotal player in the digital assets landscape. Singapore has already granted full licenses to several crypto service providers, including Blockchain.com, Circle, Coinbase and Ripple. In late 2023, Bitstamp initiated talks with three major European banks regarding the potential introduction of cryptocurrency services in 2024. This signals a broader trend within the EU, where the crypto regulatory initiative, MiCA, is smoothing the path for traditional financial institutions to venture into the digital assets realm. Robert Zagotta, Bitstamp’s Chief Commercial Officer, highlighted the surge in interest surrounding its “Bitstamp-as-a-Service” offering, especially within European circles. This service furnishes a white-label licensing framework, coupled with requisite technology, to aid banks and fintech entities in facilitating cryptocurrency transactions for their clientele. However, the regulatory landscape isn't as welcoming in India, where the country’s Financial Intelligence Unit (FIU) urged the Ministry of Electronics and Information Technology to block the URLs of nine major global crypto exchanges, including Bitstamp, in late 2023. 

Dunamu Loses Lawsuit Seeking $19M in Corporate Tax Refunds After Venture Status RemovalDunamu, the operator of South Korea’s largest cryptocurrency exchange Upbit, lost a 24.8-billion-won (approximately $18.7 million) corporate tax lawsuit, according to local news outlet The Korea Economic Daily. This legal action emerged after Dunamu was removed from the list of registered venture firms in December 2018. The Seoul Administrative Court ruled that since Dunamu was no longer a venture, it was not eligible for the associated tax benefits.Photo by Tingey Injury Law Firm on UnsplashLosing venture statusIn September 2017, Dunamu obtained certification as a venture company from the Ministry of SMEs and Startups. However, this certification was revoked in December of the following year. This revocation was due to an amendment to the Enforcement Decree of the Venture Businesses Act in October 2018, which resulted in the exclusion of “blockchain-based crypto asset trading and brokerage” from the venture business classification. Consequently, the withdrawal of this certification rendered the company ineligible for government tax incentives.Tax refund request deniedIn August 2020, Dunamu took action by formally requesting a refund of KRW 24.8 billion in taxes previously paid to the tax office. The foundation of its claim rested on its entitlement to venture company tax benefits up until the corporate tax period of 2018. However, its request was turned down, leading Dunamu to escalate the matter by initiating an administrative case against the tax authorities, following an unfavorable decision by the Korean Tax Tribunal.Meanwhile, an amended version of the Act on Special Cases Concerning Taxation Restrictions, which excluded cryptocurrency-related industries from benefiting from tax reductions, went into effect in January 2019. Pointing to the effective date of this act, Dunamu argued that the company should be entitled to benefits applicable up until the corporate tax cycle of 2018. Furthermore, Dunamu highlighted its legal action, which had led the administrative court to suspend the effects of the venture company certification revocation from December 31, 2018, to January 18, 2019.Court’s stanceDespite these arguments, the court rejected Dunamu’s argument and upheld that tax relief could not be granted for the tax year encompassing the date of the removal of its venture status. Additionally, the court affirmed that the tax authorities’ decision was valid since the venture status had been revoked in 2018, regardless of the amended Taxation Act’s implementation.In disagreement with the court’s ruling, Dunamu has filed an appeal against the decision.