Kazakhstan plans CryptoCity as pilot project for crypto payments

Korea and Japan Collaborate to Develop Accounting Standards for Virtual AssetsThe Korea Accounting Institute (KAI) announced today that it held a bilateral meeting yesterday with the Japanese Financial Accounting Standards Foundation (FASF) to discuss devising accounting standards for virtual assets. Among the attendees were high-level officials of the FASF, including Yasunobu Kawanishi, Chair of the Accounting Standards Board of Japan.Photo by Shubham’s Web3 on UnsplashConsensus on establishing standardsBoth parties agreed on the importance of establishing accounting standards for virtual assets. These standards should be practical and easy to follow, ensuring that they offer sufficient information to readers of financial statements.Reciprocal sharing of progressKAI is in the process of revising the Korean version of the International Financial Reporting Standards (K-IFRS) to require companies to disclose information related to virtual assets within the annotations of their financial statements. This mandatory disclosure of virtual asset-related details was announced by the Korean Financial Services Commission last month, with implementation scheduled for January of next year. This significant update was a topic of discussion in the meeting. Similarly, the FASF reciprocated by sharing its own progress and advancements.This meeting was arranged in light of the deepening relations between the two nations. The close collaboration between the two groups is poised to give Korea momentum to broaden its global presence. Moving forward, the accounting bodies of both countries are committed to continuing their cooperative efforts.

Hong Kong's Office of the Privacy Commissioner for Personal Data (PCPD) has issued a directive for the Worldcoin Foundation to cease its operations within the region, citing violations of local privacy laws. The decision comes after the PCPD found that Worldcoin had improperly collected facial and iris data from approximately 8,302 individuals. The agency’s investigation included ten covert visits to six different Worldcoin locations between December 2023 and January 2024. According to the PCPD, the extent of data collection by Worldcoin was deemed "unnecessary and excessive" failing to adhere to the Data Protection Principles.Photo by Claudio Schwarz on UnsplashConcerns over data retentionThe privacy watchdog criticized Worldcoin for its intention to retain personal data for up to 10 years. This retention period was intended for training AI models for user verification processes but was judged by the PCPD to be excessively long, amounting to prolonged retention of personal data. Following the findings, the PCPD has issued an enforcement notice to Worldcoin, mandating the cessation of all its activities in Hong Kong. Privacy Commissioner Ada Chung has called on the public to report any ongoing operations by Worldcoin in the city. In response to growing international scrutiny, Worldcoin announced in March that it would halt the collection of personal data and is planning to introduce a new feature titled "Personal Custody," which would purportedly allow users to store their data on their devices. This change comes as Worldcoin faces additional challenges in other jurisdictions, including Spain and Portugal, which have also expressed concerns over the project's data collection practices. The project was also scrutinized in South Korea but it recently resumed services. As of now, Worldcoin has not provided comments regarding the recent regulatory actions. 

Philippines Delays Crypto Framework PublicationThe Philippines’ financial regulator has decided to postpone the release of a legal framework for the crypto industry, originally scheduled for late 2022, despite a tumultuous year.That’s according to a report published by local news outlet, Philstar Global. In the face of numerous market failures in 2022, the Philippines’ financial regulator has opted for a cautious approach and delayed the publication of a legal framework for the crypto industry, which was initially expected to be released by the end of the same year. However, work on the guidelines is still ongoing, and there is a possibility that the results could be made public in 2023.Photo by Krisia on PexelsScrutinizing crypto failuresAccording to the chairman of the Philippines Securities and Exchange Commission (SEC), Emilio Aquino, the regulatory authority has adjusted its previous deadlines for introducing the crypto framework in the country. The SEC had originally planned to roll out the guidelines in 2022, but they held back in order to thoroughly study the reasons behind the collapse of the FTX exchange and ensure the protection of investors.Aquino stated that there is still a chance that the framework will be issued by the end of 2023, saying, “We haven’t closed the door. We really just have to make sure people don’t get burned.”Earlier this year, the SEC joined forces with the University of the Philippines Law Center (UPLC) to collaborate on the development of guidelines for digital assets. In January 2023, the regulator introduced the Implementing Rules and Regulations of Republic Act No. 11765 for public comment. This act, which was signed into law in 2022, however, does not explicitly mention “crypto” or “blockchain.”The crypto industry in the Philippines has been facing increasing pressure. The country’s central bank has been urging citizens to refrain from engaging in any transactions with unregistered or foreign crypto exchanges, and the SEC has echoed these recommendations.In May 2023, the SEC identified Gemini Derivatives as an unregistered security product under national law. In the investor advisory, the Commission wrote: “The public is advised not to invest or to stop investing in the investment scheme of Gemini Trust Company, LLC.”Last month the country hosted a meeting of the Regional Consultative Group for Asia of the Financial Stability Board. That meeting, held in the Philippines' oldest city, Cebu, highlighted the risks pertaining to crypto assets.Potential for positive approachNevertheless, the Philippines remains an attractive destination for crypto enthusiasts. With its rapidly growing economy, it has emerged as one of the world’s fastest-growing markets, with over 11.6 million Filipinos owning digital assets, placing it 10th worldwide in terms of crypto adoption.In an opinion piece published by Forkast News in April, Robert De Guzman, Head of Legal Compliance at Philippines-based cryptocurrency exchange Coins.ph, outlined his view that the country is forging a positive, workable framework for crypto assets. With that, it sounds like while the delay is unwelcome, the more important factor is that the South East Asian country devises a framework that is fit for purpose relative to the innovation at hand.