U.S.-sanctioned Huione Group suspected of supporting crypto transactions in Korea

Hong Kong Insurer Expands Into Digital AssetsOneDegree, a leading virtual insurer in Hong Kong, has successfully raised US$55 million in its latest funding round to support the expansion of its digital assets insurance portfolio, according to an announcement made by the company on Thursday.The round saw participation from existing investors such as Gobi Partners, Sun Hung Kai, and Bitrock, as well as new investors. This marks OneDegree’s fifth fundraising effort since its establishment in 2016 and brings its total funds raised to over US$97 million. $28 million of this Series B round had been raised in 2021.Digital asset insurance will be offered under the name “OneInfinity” by the firm in partnership with global insurance behemoth Munich Re. The product is being targeted at digital asset trading platforms, custodians, asset managers, and technology providers. While the company doesn’t insure DeFi projects right now, it aspires to do so in the future.Photo by Kindel Media on PexelsLeading Hong Kong online insurerAs one of the four purely online insurers licensed by the Hong Kong Insurance Authority, OneDegree is at the forefront of the authority’s push to integrate technology into the insurance sector to enhance services and reduce costs. The company is not permitted to hire agents, and all sales must be conducted online or through mobile apps.Alvin Kwock Yin-lun, Co-Founder of OneDegree and former JPMorgan banker, expressed his gratitude for the strong support received during this challenging fundraising environment. Kwock attributed the successful round to the company’s robust revenue growth in various insurance segments, including pet, home, fire, medical, and digital assets coverage. He expects OneDegree to achieve profitability next year.Digital asset insurance importanceHighlighting the importance of digital asset insurance, Kwock pointed out that in 2022, approximately US$3.8 billion worth of digital assets were compromised globally, out of a total global cryptocurrency market capitalization of US$1 trillion. He estimated that the market for digital asset insurance premiums would surpass US$1 billion annually in the coming years.To capitalize on this growing demand, OneDegree has been focusing on providing insurance coverage to virtual asset trading platforms and operators. The company introduced its cryptocurrency insurance by offering a HK$100 million cover to Hong Kong Digital Asset Exchange in November 2021.Kwock emphasized that the recent regulatory regime introduced by the Securities and Futures Commission (SFC) on June 1 will further drive the demand for digital asset insurance. He believes OneDegree is well-positioned to offer comprehensive coverage for the risks faced by digital asset operators, as the company possesses the necessary expertise and experience.Looking ahead, OneDegree plans to expand its presence across Asia and offer innovative products such as InsurTech and cybersecurity software-as-a-service solutions.OneDegree’s expanding presence in Asian markets relative to digital assets is to be welcomed. The digital assets space has had its fair share of collapses that may have been prevented with the involvement of a digital asset insurance specialist, and failing that, the application of such a product would naturally prevent losses suffered by market participants.

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.

Xangle and CryptoTimes partner to advance Web3 adoption in Korea and JapanXangle, a digital asset data research platform based in South Korea, announced Wednesday (local time) a collaboration with Japanese crypto media CryptoTimes with the goal of advancing the widespread adoption of Web3 technology.Photo by Shubham’s Web3 on UnsplashSharing translated reportsThe two platforms have agreed to translate and share each other’s industry analysis reports on their respective platforms. Through this partnership, they aim to bridge the gap between Korea and Japan in sharing Web3 strategies and regulatory updates, which previously faced challenges due to language barriers.As a first step in this joint effort, the Japanese translation of Xangle’s “Waiting for the Spring of Music NFTs: Industry Perceptions and Future Potential” and the Korean translation of CryptoTimes’ “Nike, Adidas and Puma’s Web3 Trend Comparison Report” were made accessible to their platform users on Nov. 27.In particular, Xangle’s reports will be featured in CryptoTimes’ research repository, CT Analysis. Through this, Xangle aims to reach a wider audience in Japan.Stronger communication between Korea and JapanJunwoo James Kim, co-CEO and co-founder of Xangle, shared his excitement regarding their collaboration with CryptoTimes, a renowned media outlet in Japan. He emphasized the significance of both Korea and Japan emerging as leading forces in the Web3 industry within Asia. Kim added that this partnership will foster stronger communication between the blockchain sectors of both nations, accelerating the widespread adoption of Web3.Discussing Web3 development, Kim outlined that we are currently in the third phase, centered around its widespread adoption. The first phase saw the birth of various ideas, while the second phase involved testing these concepts for viability.Shingo Arai, co-founder of Rokubunnoni, which operates CryptoTimes, emphasized that the trends in the Korean Web3 market are not just informational but serve as significant indicators. He noted that sharing reports is merely the beginning. Arai expressed their intent to continuously seek various collaboration opportunities with Xangle, aiming to close the information gap between Korea and Japan in the Web3 arena.