Korean Supreme Court acquits Dunamu Chairman Song Chi-hyung

Seychelles-headquartered global crypto exchange KuCoin has announced the full launch of its affiliate in Thailand. KuCoin Thailand was first presented by KuCoin back in April. The affiliate company emerged through a rebranding of local digital asset exchange, ERX. The renamed entity continues to be operated by ERX Company Ltd., while benefiting as a KuCoin affiliate from its global market presence and global exchange infrastructure.Photo by Bradley Prentice on UnsplashERX platform users onboardedSince that initial announcement, the exchange has been operated by onboarding users on an invite-only basis. All of the original ERX platform users have been ported across to KuCoin Thailand. In a statement published to its website on June 13, KuCoin Thailand pointed out that it is moving on from that invite-only phase to fully launch the platform.  It asserted that the platform is fully licensed by Thailand’s Securities and Exchange Commission (SEC) and it has now proceeded to full launch with no further access restrictions. In tandem with the full public launch of the platform, the company indicated that it was running a special rewards initiative with a prize pool of one million Thai Baht ($30,845) and introducing a new brand mascot named “Kuku.” In a press release, KuCoin claimed that “this marks the first fully regulated local digital asset exchange under KuCoin's brand,” contributing towards the company’s goal “to build fast, secure, and user-friendly infrastructure for crypto users” globally. Strengthening KuCoin’s presence in Southeast AsiaKuCoin CEO BC Wong described the launch as “a significant milestone in [the company’s] global compliance journey.” He added: “From being the first global exchange to register with India's FIU to now launching the first local compliant platform in Thailand, this marks a significant step toward strengthening our presence in the fast-growing markets of South East Asia.” In discussion with Cointelegraph, the KuCoin CEO provided an insight into how the company is approaching global growth while focusing on local market considerations. He stated: “While KuCoin Global supports a wide range of products for international users, we plan to expand locally in line with regulations and market demand.” Wong confirmed that the newly branded entity facilitates crypto spot trading for its users, with Thai Baht-based on and off ramps. Regulator & police enforcementThailand’s SEC moved to block five cryptocurrency platforms from accessing investors resident in Thailand late last month. The exchanges, OKX, Bybit, CoinEx, XT.com and 1000X.Live, were deemed to have been offering their services in Thailand on an unlicensed and unauthorized basis. In addition to blocking access, criminal complaints have been filed against all five exchanges. Thai police have also been busy recently with crypto-related enforcement. Last month, a Vietnamese woman was arrested on the basis of her alleged involvement in a crypto-related scam that saw 2,600 victims lose a total of $300 million. On June 12, Bangkok-based news platform Khaosod English reported that a Chinese man had been arrested in connection with a $6 million Bitcoin fraud case.

Beijing Municipal Government Unveils Web3 White PaperIn what is being perceived by many as a significant development, the Beijing Municipal Science and Technology Commission, also known as the Administrative Commission of Zhongguancun Science Park, has released a white paper titled “Web3 Innovation and Development.”Photo by zhang kaiyv on PexelsThe “inevitable trend” of Web3This announcement, as reported by local news outlet, The Paper, was made during the Zhongguancun Forum. The Forum is an event focused on technological advancements and innovation. The white paper acknowledges Web3 technology as an “inevitable trend for future Internet industry development.”The objective of the Beijing Municipal Government is to establish the city as a global innovation hub for the digital economy. To support this ambition, the government plans to allocate a minimum of 100 million yuan (approximately $14 million) annually over the next two years.Enhanced policy supportThe white paper points towards Beijing’s intention to enhance policy support and accelerate technological advancements to foster the growth of the Web3 industry. This strategic move aligns with what appears to be China’s evolving stance toward the crypto industry, as the government aims to leverage the potential of emerging technologies.The timing of the white paper release coincides with the upcoming implementation of new digital asset regulations in Hong Kong. At the beginning of next month, the Securities and Futures Commission (SFC) of Hong Kong will introduce new rules for the cryptocurrency sector, permitting retail investors to engage in crypto trading. This stands in stark contrast to the current regulatory environment in the United States, where authorities have been tightening their control over cryptocurrencies.Second guessing China’s approach to cryptoChina had previously banned the use of cryptocurrencies in 2021. Notwithstanding that, the release of the Web3 white paper may suggest a potential shift in the country’s approach. Notably, on May 23, China Central Television, a state-owned media outlet, aired a segment focused on cryptocurrencies, prominently featuring the Bitcoin logo and a Bitcoin ATM in Hong Kong.This coverage holds significance, but the fact that the video was quickly taken down from the broadcaster’s website casts doubt on just how far down the crypto rabbit hole China is willing to go.Changpeng Zhao (CZ), the Founder and CEO of global crypto exchange Binance, tweeted out that the timing of the publication of the paper is apt given other blockchain and crypto-related initiatives taken on by various Chinese entities. A recent study suggested that Hong Kong is emerging as a leading jurisdiction when it comes to its crypto readiness.It remains to be seen how these developments will unfold and whether Beijing’s proactive approach will pave the way for further integration of blockchain technology and cryptocurrencies in China’s digital economy.For the time being, with the release of the white paper, Beijing appears to have taken a significant step forward in shaping its future as a leading player in the global Web3 landscape. However, to what extent Beijing is ‘all in’ on crypto remains imponderable.

Japanese cabinet approves crypto tax reformThe Japanese government has green-lit an amendment to its fiscal 2024 tax reform plan, specifically targeting the taxation of companies holding third-party-issued cryptocurrencies.Photo by Louie Martinez on UnsplashIntroducing tax exemptionAccording to local news sources, this amendment brings about a crucial change by exempting such companies from the year-end mark-to-market valuation tax.The Fiscal Year 2024 Tax Reform Outline, now approved by the Japanese cabinet, marks a departure from the previous tax regime. Under the new framework, companies holding crypto assets will no longer be subjected to mark-to-market valuation at the end of the fiscal year. Instead, they will be taxed solely on the actual profits realized from the sale of virtual currencies and tokens.Alleviating the tax burdenThe primary motivation behind this amendment is to alleviate the tax burden on corporations engaged in the holding and operation of crypto assets. Previously, corporations holding third-party-issued cryptocurrencies were required to record profits or losses based on the difference between market value and book value at the end of the fiscal year. The new reform, however, exempts assets assumed to be held continuously from this mark-to-market valuation.News of moves to implement such reform emerged at the beginning of December. At the time, a report by Nikkei Asia suggested that Japanese lawmakers were working towards addressing issues related to crypto taxation. Japanese regulator, the Financial Services Agency (FSA) had first proposed such changes to the tax code via a 16-page submission on Aug. 31.Signaling investor-friendly approachThis policy shift aligns the taxation of companies with the tax system applicable to individual investors, signaling a more investor-friendly approach. Lawmakers from the Liberal Democratic Party and their coalition partner Komeito had reportedly considered a proposal to exempt corporations from taxes on unrealized crypto gains. This move is seen as Japan’s effort to boost liquidity in the market, putting it in line with other Asian regions striving to become prominent centers of crypto activity.The amendment, influenced by the Japan Cryptoasset Business Association’s (JCBA) call for tax reform, is anticipated to stimulate the growth of local startup businesses utilizing blockchain technology and attract international projects to the Japanese market.The proposal is set to be presented at the regular session of the National Diet (Japan’s national legislature) in January of the upcoming year, where it will require approval from both the House of Representatives and the House of Councilors.Notably, the Fiscal Year 2024 Tax Reform Outline encompasses a broader spectrum of economic policies, including a plan to reduce income tax and resident tax by 40,000 yen per person from June 2024 onwards.News of the crypto tax reform has been well-received by most industry commentators and market participants. Daiki Moriyama, Director of Singapore-based gaming blockchain project Oasys, reacted positively to the development. He told The Block:“The fact that the Japanese government has demonstrated its willingness to grow Web3 business by enacting tax reform for the second year in a row is extremely important to all Web3 business stakeholders around the world.”