Japan moves to curb unregistered crypto operators amid speculative concerns

Korean Police Agency Bolsters Crypto Investigation SkillsThe Korea National Police Agency (KNPA) is escalating its efforts to improve its proficiency in probing digital asset-related crimes. As reported by Digital Today, this will be achieved by providing dedicated training to track digital assets and implementing a strategic plan to eradicate such illicit activities.Photo by Pixabay on PexelsTracking digital assetsIn a recently revealed training proposal, the KNPA outlined its intention to launch a specialized training program on tracking digital assets. The program, scheduled to begin in mid-July, will run for three months and include four distinct sessions, with a total of 120 attendees.The rising number of cases involving the illicit use of virtual assets to gain criminal proceeds has underscored the necessity for proficient tracking of these assets during investigations. As part of its commitment to strengthening its cyber investigation capabilities, the KNPA is encouraging its officers to obtain professional certifications. Last year, the agency also organized a training course focusing on tracing virtual assets.Hands-on, case-based approachThis year’s training curriculum will adopt a more hands-on, case-based approach, emphasizing practical experience. There will be two types of courses offered: specialized and advanced. They will cover a range of topics, including the fundamentals of Bitcoin, the differences between Ethereum and Bitcoin, and the concept of crypto mixing and unmixing.Chainalysis certificationsUpon completion of the specialized course, participants will be awarded a Chainalysis Reactor Certification from a reputable crypto data analysis company based in New York. Those completing the advanced courses will receive certifications such as the Chainalysis Ethereum Investigations Certification and the Chainalysis Investigation Specialist Certification.In April, the KNPA initiated a procurement procedure to acquire and install 12 units of crypto tracking software developed by Chainalysis, costing 81.67 million KRW ($61,000) per unit. This software allows for real-time monitoring of crypto address transactions, data visualization, correlation analysis, and supports the tracking of over 100 tokens, including Bitcoin and Ethereum. It also facilitates IP tracking and unmixing, a technique used to disentangle mixed cryptocurrency transactions.Strategic effortsTo further enhance its expertise in investigating virtual assets, the KNPA commissioned a study this month titled “Establishing Strategies to Eradicate Virtual Asset Crimes and Address Investigation Risks.” Through this initiative, the agency aims to examine the policy and legislative approaches adopted by other countries in combating crypto crimes, assess their applicability in Korea, and study investigative techniques and systems tailored to various virtual assets.

South Korea will tax crypto gains regardless of whether assets sit on domestic exchanges, offshore platforms or in self-custody wallets when its long-delayed digital asset levy takes effect in 2027. Policing private wallets, however, will be difficult, the tax agency acknowledged. Income residents earn from transferring or lending digital assets will be subject to tax wherever they are kept, the Ministry of Economy and Finance and the National Tax Service said in written responses to People Power Party lawmaker Kim Sang-hoon, according to Digital Asset. The regime is scheduled to take effect Jan. 1, 2027. Gains above an annual deduction of 2.5 million won, or about $1,800, will be treated as miscellaneous income and taxed at 20%, or 22% including the local surtax.Ilustration generated with ChatGPTThe NTS said self-custody wallets are difficult to track since users can freely generate new addresses and transact without regulated intermediaries. It plans to use blockchain tracing tools to strengthen enforcement. For offshore exchanges, authorities will rely on overseas financial account reporting and the OECD's Crypto-Asset Reporting Framework, or CARF. The treatment of staking, lending, airdrops and hard forks remains unsettled. Tokens distributed free by exchanges may already count as miscellaneous income when classified as prizes or promotional rewards. Foreign crypto companies and domestic financial institutions are also expanding their presence in the market. BitGo Korea completed its virtual asset service provider registration after receiving Financial Intelligence Unit approval on Aug. 18, Yonhap reported. It is the first local subsidiary of a foreign crypto company to register as a VASP without acquiring an already licensed operator. Hanwha Asset Management, Ripple and U.S. investment manager Canary Capital have formed a partnership spanning trading, custody, wallets, payments, tokenized real-world assets and exchange-traded funds, Korea Economic Daily TV reported. Canary CEO Steven McClurg said the company intends to launch an ETF in South Korea, building on its experience with its U.S. XRP ETF. Ripple has also signed Jeonbuk Bank as the first South Korean regional bank to use Ripple Payments for cross-border corporate remittances, cutting settlement times from several days to near-instant. Shinhan Asset Management signed a memorandum of understanding with Plume Network to test a won-denominated tokenized fund based on one of its ultra-short-term bond funds, Yonhap Infomax reported. The trial will be conducted in a country outside the two markets and cover issuance, distribution, wallet whitelisting, know-your-customer (KYC) checks and anti-money-laundering (AML) controls. Any rollout at home would still require regulatory approval. The 2027 timeline could still slip. Kim is preparing a bill to push the levy back to Jan. 1, 2029, Edaily reported. The National Assembly's legislative office is reviewing the proposal, which could be introduced as early as this month. South Korea first planned to introduce the crypto tax in 2021 but has delayed it several times. 

Blockchain Meat Marketplace MOOxMOO Achieves $30m in Distribution VolumeMOOxMOO, the blockchain-based meat marketplace platform operated by South Korea’s Life In Commerce, has surpassed a cumulative distribution volume of KRW 40 billion (approximately $30 million) since its launch in February of last year.Photo by Kyle Mackie on UnsplashRevolutionizing the meat industryLife In Commerce attributed this significant achievement to the use of blockchain technology on the platform. By leveraging smart contract and soulbound token (SBT) technology, MOOxMOO provides a supply and transactional platform that streamlines business-to-business (B2B) and business-to-consumer (B2C) transactions among participants of local meat supply chains, volume retailers, and retail customers.The platform essentially embeds wholesale and retail transaction information into smart contracts, which are impossible to tamper with once minted into immutable and non-transferrable SBTs.This makes MOOxMOO a transparent and decentralized distribution platform that offers various benefits like increased liquidity, faster transaction settlement times, and boosted security. It also addresses the issue of price deviations caused by market practices.In addition, MOOxMOO has its own utility token, MOOX, that can be used for deposits and transactions.The platform’s application of blockchain technology has revolutionized the meat distribution industry by breaking away from common problems such as unfair pricing. As a result, it has not only enhanced price competitiveness but also built a reputation for trustworthiness among consumers.Future plansLife In Commerce has ambitious plans to enhance the platform further. They are currently developing a new B2B platform that will utilize the weight of transaction credits using SBT in the trade of raw materials required for meat processing and distribution. This will offer additional benefits to suppliers and buyers.