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Korean Gov’t Encourages Discussions on Tax Imposition within the MetaverseThe South Korean government is planning to hold an open forum in August, encouraging citizens to discuss the possibility of imposing taxes within the metaverse, according to News1.New social frameworkOn Tuesday, Korea’s Ministry of Science and ICT (MSIT) announced the government’s plan to develop a new social framework in the digital age. To achieve this, the government will set up an open digital forum and draft a digital bill of rights.Topics to be covered in the forum include generative artificial intelligence, the metaverse, and self-driving cars.Regulation-free metaversesThe idea of imposing taxes within the metaverse has piqued the interest of cryptocurrency users. The government has reportedly decided to exempt community-based metaverses from regulations to encourage growth. This policy will enable metaverse users to provide gaming content and engage in economic activities such as trading items and distributing giveaways. However, the potential surge in economic activities in the metaverse has brought up the issue of whether tax implementation is necessary in this virtual world.Though community-based metaverses are still premature, the government acknowledges the importance of discussing potential tax imposition.While the current agenda is focused on metaverses, it remains unclear whether discussions will extend to loosening regulations for blockchain-based games.Strict gaming restrictionsCurrently, Korean law prohibits trading game items for cash to deter gambling behavior, prompting Korean game developers to publish their titles overseas first. In fact, Netmarble launched blockchain-based mobile board game Meta World: My City in regions other than Korea last month. This has led to concerns that Korea is falling behind in the global gaming industry due to strict regulations.Digital bill of rightsFollowing the open forum in August, MSIT will collaborate with other relevant government agencies, including the Culture Ministry and the Land Ministry, to draft a digital bill of rights in September.MSIT Minister Lee Jong-ho said that the government will conduct regular surveys to identify areas for improvement, assess the societal impact of technological advancements, monitor each ministry’s measures, and review public opinions.© Pexels/Nataliya Vaitkevich

Korbit CEO partakes in anti-drug relay campaignSouth Korean cryptocurrency exchange Korbit’s CEO, Oh Se-jin, has joined the No Exit anti-drug campaign — a nationwide relay campaign launched in April by the National Police Agency, the Korean Association Against Drug Abuse and other relevant institutions to raise public awareness about the dangers of drug addiction and promote a collective effort to prevent drug-related crimes, according to local news outlet ET News on Wednesday (local time). So far, numerous figures across various sectors and industries have participated, including actor Choi Bool-am and the president of the Korean Nursing Association Kim Young-kyung.Photo by Hal Gatewood on UnsplashEncouraging collective vigilanceThe campaign’s slogan draws a metaphor between drugs and a maze that cannot be escaped once it has been entered. Participants in the campaign are obligated to share photos with a message that reads, “Do not start drugs — it is a maze with no exit”, and nominate the next participants.“I hope that all citizens will realize the seriousness of drugs through the No Exit campaign, and I aspire to contribute to creating a safer society. Korbit will fulfill its social responsibility in the cryptocurrency industry and contribute to building a healthier society,” Oh said.Next participantsOh was tagged in the campaign by Lee Hyo-jin, CEO of the peer-to-peer (P2P) financial services company 8Percent. In turn, he nominated Lee Sang-ho, CEO of HSBC’s Korea office, and Kim Ji-yun, CEO and Co-founder of DSRV Labs, as the next participants.

Taiwan's cryptocurrency scene has been rattled by the arrest of David Pan, the founder of ACE Exchange, a prominent cryptocurrency platform.Photo by Timo Volz on PexelsAccording to local media outlet Liberty Times, this development is part of a broader operation targeting fraudulent activities involving 13 additional suspects. Law enforcement authorities, as of now, have confiscated assets totaling around NT$200 million ($6.4 million), dealing a significant blow to the alleged fraudulent operations. A sophisticated fraud schemeThe arrest of Pan, alongside company executive Lin Nan, stems from accusations of a sophisticated fraud scheme orchestrated by the duo, along with their team. The modus operandi involved deceptive tactics, including the use of fake advertisements on popular social media platforms like Instagram and Facebook. Over the past three years, more than 100 investors have reportedly fallen victim to the scheme, losing over one billion yuan ($140 million). Lin Nan, leveraging social media, enticed potential investors with promises of quick wealth through the listing of virtual currencies on well-known exchanges. Simultaneously, David Pan lent credibility to ACE Exchange, fostering trust in the virtual currencies listed on the platform. However, investors soon discovered that the virtual currencies touted as having realizable value were, in reality, "junk coins" with plummeting values or no circulation options. Ace Exchange office raidLegal charges filed against the suspects include fraud under the Criminal Code, the Money Laundering Prevention Act and the Banking Act. Law enforcement agencies in Taiwan conducted multiple raids, including at ACE Exchange offices. Lin Nan's residence yielded NT$111.52 million ($3.6 million) in cash, with additional cryptocurrency seizures bringing the total to over NT$200 million ($6.4 million). In response to the scandal, ACE Exchange has distanced itself, asserting that the arrested individuals are not current employees. The company clarified that Pan had ceased active involvement in daily operations as of 2022. ACE Exchange is actively cooperating with the investigation and has positioned itself as a witness in the case. MOCT delistingDespite the ongoing investigation, ACE Exchange, founded in 2018 and a dominant player in Taiwan's crypto market, continues to operate, upholding regulatory obligations and prioritizing user interests. However, the incident has prompted the platform to announce the delisting of the MOCT-TWD trading pair, effective Jan. 8, in alignment with its commitment to regularly evaluate and delist tokens not meeting stringent criteria. This development occurs amid heightened scrutiny of cryptocurrency exchanges globally. CoinDCX, a major crypto investment firm, recently faced allegations of bank and crypto fraud on its mobile application. Similarly, Lee Jeong-hoon, former chairman of Bithumb, South Korea's major crypto exchange, received an eight-year prison sentence over alleged fraud, awaiting an impending appeal verdict. Taiwan, like Hong Kong, had also been dealing with the fallout from the fraudulent activity of Dubai-headquartered crypto exchange JPEX. David Pan is also the founder of the Dubai-based ZORIXchange cryptocurrency platform. Prior to crypto ventures, Pan worked for KPMG in Taiwan as its COO for startups and innovation. These cases underscore the critical need for comprehensive regulation of the crypto ecosystem. As digital assets gain popularity, the risks of fraudulent activities rise, necessitating collaboration between governments and regulatory bodies to establish and enforce stringent regulations that protect investors and uphold the integrity of virtual crypto exchanges.