Hong Kong zeroes in on tokenization as corporate crypto holdings climb

North Gyeongsang Province launches metaverse platform to become digital hubNorth Gyeongsang Province has officially launched its integrated metaverse platform Metaport, which aims to expand access to the metaverse — a key component of the digital economy — for the region’s citizens. It also serves to showcase the region’s cutting-edge technologies and establish it as a hub for emerging industries.Photo by Mimi Thian on Unsplash“We will focus on a strategy to solidify our position not only as a metaverse capital but also as a global digital hub,” said the province’s Governor Lee Cheol-woo.Offering a hybrid metaverse experienceTouted as the nation’s first scalable hybrid metaverse platform, Metaport utilizes Web3 technology to provide both web and app services. In particular, it leverages open APIs to integrate features such as login and avatars into one service, which allows users to enjoy metaverse content provided by local governments, public institutions, businesses, schools and more.Bridge to the futureThe platform also connects reality and the virtual realm with a virtual model of the Daegu-Gyeongbuk Integrated New Airport as the main space within the realm. The Daegu-Gyeongbuk Integrated New Airport is a joint military-civilian airport that is set to be built by 2030 in the Uiseong and Gunwi counties.Users can access MetaPort through a website without downloading a separate program. The mobile app is also available for Android smartphones on the Google Play Store.

Indonesia's cryptocurrency regulatory body is urging the government to reconsider its tax policies concerning digital assets. Officials from Indonesia’s Commodity Futures Trading Supervisory Agency (Bappebti) argued last week that the imposition of double taxation on crypto transactions warrants a reevaluation. That’s according to a report which appeared in local news source, Bisnis Indonesia, a Jakarta-based daily newspaper. Currently, cryptocurrencies in Indonesia are classified as commodities, subjecting them to a value-added tax (VAT) of 0.11% and an income tax of 0.1%.Photo by Bisma Mahendra on UnsplashProposed changes in 2025Tirta Karma Senjaya, the head of Bappebti, the Indonesian Commodities and Futures Trading Regulatory Authority, highlighted that the classification of cryptocurrencies as commodities might undergo changes in 2025. This potential shift is due to the planned transfer of crypto oversight from Bappebti to the Southeast Asian country’s financial services authority, OJK.It had been speculated that the switch of oversight would potentially reclassify digital assets as securities. With that change would come a necessary adjustment to the applicable tax policy. Tirta suggested that given that cryptocurrencies are expected to be integrated into the financial sector by January 2025, he urged the Tax Director General to reconsider these tax rates. The regulatory body head added that it’s been over a year since the implementation of these rules. With that, tax policies typically undergo annual reviews. Accommodating crypto’s developmental stateAddressing an event in Jakarta, the regulatory body head emphasized the nascent stage of the crypto industry and its regulatory framework. Consequently, he advocated for providing the industry with leeway to mature until it becomes a substantial contributor to national revenue. In response to Bappebti's call for a reassessment of crypto taxes, Dwi Astuti, a spokesperson for the Ministry of Finance, assured that the Ministry would consider input from both industry stakeholders and the public. "We welcome input from Bappebti and the public. It will certainly be discussed internally," remarked Astuti during a media interaction last week. 2023 crypto tax take slumpThe existing tax structure for cryptocurrencies has been in effect since April 2022, generating approximately $2.49 million in revenue in January 2024. In contrast, Indonesia recorded $41.2 million in crypto tax revenue in the previous year. However in 2023, the country witnessed a decline of 63% in crypto tax revenue compared to the previous year, despite Bitcoin's remarkable surge of approximately 160% during that period. Local crypto exchanges such as INDODAX had attributed the significant drop in trading volume throughout 2023 directly to hefty taxes, expressing concerns that it would drive users towards foreign exchanges. Hasan Fawzi from the Ministry of Finance highlighted the trend of decreasing crypto asset transaction values in 2023. Nonetheless, he noted that the number of crypto asset customers continued to rise, reaching 18.06 million users throughout the year. The crypto sector is seen as having a lot of potential in Indonesia. Last October data released by Bappebti suggested robust growth of the crypto investment landscape within the country. Over the space of a year, Indonesia had seen a 10.1% growth in the number of crypto investors. That data may not have been lost on the country’s politicians as in December, crypto featured as an election campaign issue.

Fraud Defense Sees Terraform Labs Pursue Access to FTX WalletsTerraform Labs, the Singapore-based cryptocurrency firm at the center of a lawsuit filed by the United States Securities and Exchange Commission (SEC) in February, is taking steps to bolster its defense against fraud charges.Photo by Anete Lusina on PexelsSubpoena for debtors’ recordsAccording to a motion filed with the FTX bankruptcy court in Delaware on Wednesday, the company is seeking permission from a judge to subpoena data from the bankrupt crypto exchange. The filing shows that Terraform’s legal team is requesting access to information about digital wallets utilized by short sellers between March and May 2022.The company believes that its algorithmic stablecoin’s collapse was not a result of natural market forces but rather a coordinated attack by short sellers, potentially involving Alameda Research, FTX’s sister company.The motion states: “To establish these defenses, TFL needs Debtors’ records about wallets, accounts, and assets used to transact on the FTX International and US exchanges and sales/offers of large volumes of cryptocurrencies developed by TFL, if any, by FTX Trading and West Realm Shires Services Inc. d/b/a FTX US.”Alleged securities fraudThe SEC’s lawsuit, filed on February 16, accuses Terraform Labs and its founder, Do Kwon, of orchestrating a multi-billion dollar crypto asset securities fraud. The regulator alleges that Terraform offered unregistered securities through its algorithmic stablecoin, TerraUSD (UST), and the Terra Luna (LUNA) token. The failure of Terraform in 2022 led to a staggering loss of over $40 billion in the crypto markets.The motion also targets Jump Trading, another entity accused by the SEC of colluding with Terraform to manipulate the price of the UST stablecoin. Jump Trading is facing a separate lawsuit in Illinois in the US, accused of purchasing millions of UST tokens in 2021 as part of an agreement with Terraform to maintain the stablecoin’s peg to $1.“Defendants misrepresented UST’s recovery by claiming that the algorithm was able to restore and maintain the price peg. According to the SEC, UST instead recovered its price peg because Defendants entered an arrangement with a U.S. trading firm, Jump Trading, […] to purchase substantial amounts of UST to support the price,” reads the court filing.Jurisdictional argumentsAside from its pursuit of FTX’s data, Terraform is also seeking to dismiss a class-action lawsuit in California, having already sought to have the SEC lawsuit dismissed. The company argues that since it is based in Singapore, US securities laws referenced in the lawsuit are not applicable to its foreign-developed protocols.Using a similar jurisdictional argument, Do Kwon also tried to conceal documents held in Singapore by the Singaporean company from the SEC, but he failed in that endeavor.Another significant development at Terraform has seen a new CEO appointed to lead the troubled company. According to a report in the Wall Street Journal on Wednesday, Chris Amani, who has been acting as Terraform’s Chief Operating Officer and Chief Financial Officer up until now, has been appointed as CEO.