Grab partners with Solana ecosystem DePIN project to enhance mapping

The South Korean National Tax Service (NTS) is reportedly in the process of setting up virtual asset accounts for its district offices. This initiative is aimed at confiscating and liquidating the digital assets of individuals who fail to pay their taxes. This move comes after the creation of similar accounts by public prosecutors' offices, leading to speculation in the crypto industry that virtual asset accounts will soon be allowed for corporate entities as well.Photo by Nataliya Vaitkevich on PexelsDirect confiscation of virtual assetsA report by the local news outlet Etoday today has revealed that each district office of the NTS is working towards establishing a virtual asset account. This development will empower the tax agency to directly sell virtual assets confiscated from tax delinquents. Previously, the NTS would freeze the accounts of overdue taxpayers at Korean cryptocurrency exchanges, compelling them to convert their assets into Korean won. These funds were then confiscated by the NTS. The new initiative is set to streamline the process, enabling the tax authority to directly confiscate virtual assets without the intermediary step of conversion to Korean won. Speaking about this development, an NTS officer said that as each district office director holds the authority to collect taxes from taxpayers with overdue payments, it's necessary for each office to have its own account. Prosecutors’ Offices’ Upbit and Bithumb accountsThe crypto industry views this development as a potential step towards allowing the creation of virtual asset accounts for corporate entities, starting with government agencies. In December, the prosecutors' offices established their entity accounts at major cryptocurrency exchanges Upbit and Bithumb. Since then, the prosecution has utilized these accounts to sell confiscated virtual assets, aiming to recover funds that had not been collected.  An official from a cryptocurrency exchange indicated that the South Korean government is currently focusing on allowing entities that serve the public good to own virtual asset accounts. This approach is seen as the starting point, with expectations that the trend will gain momentum in the future. The official added that it's rare for the government to provide blanket permissions from the outset, suggesting a gradual and cautious approach to the integration of virtual asset accounts.Money laundering concernsMeanwhile, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC), along with other financial regulators, has remained silent on the matter of virtual asset accounts for corporate entities. This reticence stems from concerns with the financial authority that the introduction of corporate crypto accounts could potentially lead to money laundering and the creation of slush funds. An official from the National Assembly’s National Policy Committee said that they have not received any comments from the financial authority in response to inquiries about plans to allow such accounts for corporate entities. The current law doesn’t prohibit corporate entities from trading virtual assets. However, under the auspices of the financial authority, banks have refrained from offering real-name accounts to corporate entities. This policy has been a point of contention within the crypto industry. Advocates argue that allowing corporate accounts could mitigate issues of market manipulation and challenge the dominance of Upbit in the Korean cryptocurrency market.  The official from the cryptocurrency exchange pointed out that the financial authority does not have a clear legal basis for prohibiting the creation of corporate crypto accounts. They suggested that the regulator should develop clearer guidelines and enforce these rules for corporate entities. More serious discussions in AprilMore serious discussions about the introduction of corporate crypto accounts are anticipated to take place in April, following the conclusion of the general election. Last month, the main opposition party, the Democratic Party of Korea, made election promises to open the crypto market to institutional investors. Meanwhile, the ruling People Power Party has been quietly deliberating on virtual asset policy. Despite these political movements, earlier reports indicate a disconnect between the political parties' efforts to relax crypto regulations and the financial regulator's stance. Meanwhile, Hwang Seok-jin, a professor at Dongguk University’s Graduate School of International Affairs and Information Security, expects to see a conclusion on the permission of corporate crypto trading by the end of this year. He said that there has been ongoing discussion about the approval of spot Bitcoin exchange-traded funds (ETFs) and that allowing the trading of such funds requires the ownership of virtual assets by institutions. 

Tokyo Government Launches Initiative to Support Security Token BusinessesThe Office of the Governor for Policy Planning under the Tokyo Metropolitan Government made an announcement yesterday regarding its new initiative aimed at promoting the issuance of security tokens.Photo by Ben Cheung on PexelsBlockchain-based security tokensGiven the growing interest in blockchain technology, which allows for decentralized peer-to-peer transactions, various applications have emerged within the financial sector. Notably, blockchain-based security tokens hold significance as they possess the potential to promote retail investments and reshape startup financing. This potential largely stems from the fact that these tokens can be issued in smaller denominations than traditional securities, facilitating direct connections between issuers and investors.Promoting growthIn an effort to broaden this market, the Tokyo government undertakes this initiative to foster the growth of security token issuance. This endeavor is expected to stimulate the development of various use cases for security tokens, as well as facilitate the widespread exchange of valuable expertise and insights into potential challenges within this sector.Financial supportIn accordance with the Financial Instruments and Exchange Act and the Specified Joint Real Estate Ventures Act, the Tokyo government will introduce subsidies for Tokyo-based businesses involved in security token-related activities. This initiative aims to provide financial support to businesses by covering a portion of the expenses associated with token issuance. Eligible expenses that can be subsidized by the government include platform usage, consultation, and system development costs.Under this program, the Tokyo government will offer financial assistance by funding up to half of the project-related expenses, with startups eligible for up to two-thirds. The maximum grant amount per project is set at 5 million yen ($36,000). Businesses can apply for these subsidies starting from May 31, 2023, with the application window remaining open until February 29, 2024. Although applications can be submitted at any point during this period, the window will close once the allocated budget is exhausted.

Ret Games Teams Up with Binance to Support Blockchain Acceleration ProgramKorean Web3 gaming studio Ret Games said Tuesday it has signed a memorandum of understanding (MOU) with Binance, the world’s largest crypto exchange, to support a blockchain company acceleration program spearheaded by Incheon Technopark’s Blockchain Center.Bolstering blockchain startupsThe two firms will team up as a single operator of the accelerator program that will supply Incheon-based startups and small companies with the resources required to grow their blockchain businesses and establish Incheon, a city next to the nation’s capital of Seoul, as a blockchain hub. They will also be joined by a third member of the operator — on-chain risk rating solution developer Undefined Labs.Photo by Shubham’s Web3 on Unsplash“We plan to work with Binance to operate an efficient and innovative acceleration program for Incheon-based startups, fostering their growth and development,” said Kim Sung-yoon, CEO of Ret Games.Binance will provide global networking and business consultations in areas such as business modeling and blockchain technology development, while Ret Games will contribute its blockchain infrastructure and development. Additionally, Undefined Labs will provide comprehensive insights into the blockchain industry, covering technology, market trends, and use cases.Five companies for the acceleration program were chosen by Incheon Technopark — AO2, Bemuse, enterBlock, Swan Electronics, and Asia Auto Pacific. They will begin receiving support worth 20 million KRW (approximately $15,000) starting this month.The operator will be required to monitor the progress of these companies during the course of the program, which will end on November 30.Second operatorThere will also be another operator for the program besides the consortium, which solely consists of venture capital firm Nanuhm Angels. It will enable participants to test their business models by granting them access to Rotonda’s launchpad. Rotonda is a subsidiary of the Korean crypto exchange Bithumb and operates the Web3 Burrito Wallet.