UAE signs on to OECD crypto-tax reporting pact, sets 2027 launch

A Korean Lawmaker’s Crypto Holdings Worth $4.5M Spark ControversySouth Korean lawmaker Kim Nam-kuk, a member of the opposition party Democratic Party of Korea (DPK), has recently come under scrutiny due to his reported possession of 800,000 WEMIX tokens from January to February last year, as reported by the Maeil Business Newspaper. These tokens were worth approximately 6 billion KRW or $4.5 million at the time. While Korean lawmakers are obligated to disclose their wealth, virtual assets are an exception. The disclosure of Kim’s ownership of these tokens has ignited controversy, as it unveiled a wealth magnitude significantly greater than previously understood.Photo by Karolina Grabowska on PexelsTravel Rule regulationA central issue in the unfolding dispute is the source of Kim’s investment in the WEMIX tokens. It has been reported that he purchased a significant amount of these tokens between January and February last year and withdrew the entire sum between February and March before the crypto exchange implemented measures to comply with the Travel Rule regulation. This rule requires that financial authorities be informed of transactions over 10 million KRW ($7,500). After the crypto exchange reported the transactions to the Financial Intelligence Unit of the Financial Services Commission, the government agency requested a warrant to search Kim’s account due to the transactions’ abnormality. However, the court dismissed the request.Jeonse deposit to LG Display sharesIn response to the controversy, Kim took to a YouTube channel on Tuesday to explain his WEMIX token investments. He stated that he had retrieved 600 million KRW ($450,000) after his jeonse contract expired and used the money to purchase LG Display shares. Jeonse a housing rental system in Korea where tenants put up a lump-sum refundable deposit on a rental space for a two-year stay. Kim claims that these LG Display shares later rose in value to 985.7 million KRW ($744,000) in January 2021 and that he used this sum to purchase the tokens.Account balance and WEMIX tokensDespite his explanation, there are still questions surrounding Kim’s sudden increase in his bank account balance. His account balance reportedly increased from 100 million KRW ($76,000) at the end of 2020 to 1.12 billion KRW ($850,000) by the end of 2021, which raised suspicions. If Kim had directed all the money withdrawn from the LG Display shares to WEMIX tokens, it is unclear where the additional $774,000 in his account came from. Kim has reportedly explained to his party’s leadership that he retrieved the principal amount of his investment due to the increase in the WEMIX token price. However, this explanation has not satisfied some critics.Insufficient explanationIn an attempt to address these concerns, Kim shared part of his bank transaction records on Monday. However, this disclosure has fallen short of addressing all the questions that have been raised, such as the precise amount invested in the tokens and their purchase prices. There is still significant public scrutiny and skepticism surrounding Kim’s explanation for his crypto holdings, and it remains to be seen if further disclosures will be made.Kim apologized to the Korean public via Facebook for any disappointment caused, especially amid challenging economic conditions. However, he denied accusations of using undisclosed information or unlawfully acquiring wealth. Kim maintained that all transactions were transparently made using only his own wallets through his real-name bank accounts.Potential insider trading and conflict of interestNevertheless, the public’s acceptance of his explanation is yet to be seen, as questions about his $4.5 million virtual assets persist, particularly given his reported total wealth of around $1.1 million. There are concerns surrounding the possibility of insider trading. Furthermore, Kim’s participation in proposing a bill to defer tax implementation on digital assets has triggered suspicions of a potential conflict of interest.Call for an impartial third partyRecent updates indicate that the prosecution is considering requesting a warrant against Kim in relation to the controversy surrounding his crypto holdings. The Anti-Corruption and Civil Rights Commission is also examining if his participation in proposing the bill constitutes a conflict of interest. It is evident that an impartial third party will need to investigate and analyze all relevant information to resolve this dispute. Until a thorough and unbiased investigation takes place, the public’s concerns and questions are likely to continue.

Bitcoin’s long-standing four-year market cycle tied to halving events may be losing influence, according to a new outlook from crypto exchange Bybit and research firm Block Scholes that examines market conditions through 2026. The report suggests that Bitcoin price action may be increasingly influenced by macroeconomic policy, institutional participation, and market structure rather than by new supply reductions. It says historical cycles have tended to track changes in global liquidity, often measured by global M2, and that this relationship has become more visible, while Bitcoin continues to respond to shifts in expectations for Federal Reserve rate cuts.Photo by Pawel Czerwinski on UnsplashETFs reshaping demand dynamicsThe analysis points to structural changes in demand, citing the launch of spot Bitcoin ETFs and the growth of corporate digital asset treasuries (DATs). The report says ETF flows and corporate balance-sheet allocations are playing a larger role in price formation than retail trading. That shift is disrupting the traditional capital rotation from Bitcoin into Ethereum and then into smaller altcoins and memecoins. As a result, the report suggests broad altcoin rallies may be harder to ignite, with gains depending on whether assets can be incorporated into institutional products such as ETFs. On the macro front, the report says markets are pricing in further Federal Reserve easing, with looser financial conditions potentially supporting a closer relationship between Bitcoin and major stock indexes despite recent underperformance versus U.S. equities. Based on options pricing, the report estimates a 10.3% implied probability that Bitcoin reaches $150,000 by the end of 2026. At present, Bitcoin is trading slightly above $91,000. Index criteria and Japan policy in viewThe analysis also highlights policy risks, including potential volatility tied to concerns over the possible exclusion of Strategy from major stock indexes, which could affect companies holding digital assets on their balance sheets. That risk has since eased after MSCI paused a proposal that would have excluded firms with digital asset reserves, though Benchmark analyst Mark Palmer cautioned that the issue could resurface in future rule reviews. The Bybit-Block Scholes report also cites potential policy tightening by the Bank of Japan later this year as another source of cross-asset risk, following its December rate hike of 25 basis points to a 30-year high of 0.75%. RWA and stablecoinsOne area of focus in the report for 2026 is real-world asset (RWA) tokenization, which it describes as building on the stablecoin adoption that gathered pace last year. That view is echoed in a separate outlook from Moody’s, cited by Cointelegraph, which says fiat-backed stablecoins and tokenized bank deposits are functioning as “digital cash” for settlement, liquidity management, and collateral movement. Moody’s estimates stablecoins processed about $9 trillion in on-chain settlement volume in 2025 and projects banks, asset managers, and infrastructure providers could invest more than $300 billion in digital finance by 2030. As an example, Moody’s cited JPMorgan’s U.S. dollar–denominated deposit token, JPM Coin, as a way digital-cash layers can operate on top of existing banking systems. The bank’s Kinexys unit plans to work with Digital Asset to bring JPM Coin to Digital Asset’s Canton Network in a phased rollout during 2026. This follows JPMorgan’s expansion of the project onto Coinbase’s Ethereum layer-2 network Base for institutional clients. 

Bitmain Pays Employees Following Salary SuspensionBitmain, the Beijing-based Bitcoin mining equipment manufacturer, has somewhat resolved its cash flow issues, having recently suspended employee salaries in response to ongoing financial struggles and sluggish progress in its mining operations.Photo by Thought Catalog on UnsplashCash flow challengesNews of the payment issue emerged via employee reports online on Monday. The suspension encompassed both performance-based and basic wages, affecting all Bitmain personnel. The dire situation has marked a critical juncture for the ASIC manufacturer, which once held a commanding 70% share of the global Bitcoin mining machine market.Chinese crypto reporter Colin Wu had also outlined the firm’s difficulties on social media. In a subsequent post on X (formerly Twitter), Wu stated:”On the afternoon of October 7, Bitmain has repaid September wages, and stated that it only did not pay the performance salary of some people. It has also been repaid, and the basic salary has been released normally on September 30.”More recent reports by local news media in China indicated that the firm has proceeded to pay part of its staff salaries.Internal conflictsBitmain’s financial woes are not new. The company has been plagued by internal conflicts between its co-founders, Wu Jihan and Zhan Ketuan, resulting in a debilitating power struggle that severely eroded its market dominance. Earlier efforts to restore financial stability included a restructuring of employee compensation in the first quarter of this year. Under this reform, the original fixed salary was divided into a basic salary and a performance-based component linked to rank.Regrettably, these measures have proven insufficient to reverse Bitmain’s fortunes. In a company announcement issued in September 2023, Bitmain acknowledged that its operating cash flow had plunged into negative territory, and the performance of its mining machines fell short of expectations.Consequently, the company suspended employee salaries, with the prospect of resuming payments contingent upon developments after the October 7 holiday.It emerged in April that the firm had been fined for tax code violations in China.Core Scientific dealIn August, Bitmain explored the possibility of acquiring an equity stake in Core Scientific, a prominent North American crypto-mining company, as part of Core Scientific’s bankruptcy restructuring plan. This proposed agreement, pending final documentation and court approval, entails Bitmain acquiring 27,000 S19j XP Bitcoin miners from Core Scientific.The Core Scientific deal represents a potential lifeline for Bitmain. Nevertheless, the suspension of employee salaries underscores the prevailing uncertainty surrounding the company’s future. Whether the completion of the Core Scientific transaction will usher in the much-needed financial turnaround for Bitmain remains uncertain as the company grapples with its ongoing financial challenges.Bitmain’s decision to suspend employee pay highlights the gravity of the situation and the urgency of finding a sustainable solution to its financial woes. The outcome of the Core Scientific deal could determine Bitmain’s fate as it strives to regain its once-dominant position and secure its financial stability. In the meantime, the firm continues to develop the latest generation of Bitcoin mining equipment.