Taiwanese regulator set to launch crypto custody pilot

New Kazakh Platform Underscores Binance’s Push EastwardsGlobal cryptocurrency exchange Binance is making a significant move towards the East in response to mounting regulatory challenges in Western markets. The exchange has recently launched a regulated digital asset platform in Kazakhstan, marking a milestone in its expansion strategy.The announcement was made during a press conference held on June 20, attended by distinguished guests including representatives from Kazakhstan’s banking sector and Binance Kazakhstan’s leadership. The company followed up with a blog post detailing the development, published to its website on Wednesday.This milestone achievement follows Binance’s preliminary approval for operations in Kazakhstan received last August. By October, the Astana Financial Services Authority (AIFC) granted the exchange a permanent license to establish a digital asset platform and provide custodial services at the Astana International Financial Center.Photo by Engin Akyurt on PexelsBespoke platformThe newly established Binance platform in Kazakhstan aims to cater specifically to the needs of Kazakhstani users. It offers a comprehensive suite of services encompassing cryptocurrency exchange, conversion, fiat currency deposits and withdrawals, as well as custody of crypto assets.These financial services will be facilitated through a partnership with Freedom Finance Bank, Kazakhstan’s banking partner for Binance. Users of the platform will be able to transfer fiat funds to their accounts, with deposits and withdrawals currently supported through bank transfers or bank cards via Freedom Finance Bank.Adverse Western market conditionsBinance’s expansion into Kazakhstan comes at a time when the exchange is grappling with legal challenges in the United States and several European countries. In the US, Binance is currently embroiled in a lawsuit with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).Last month, Binance announced its withdrawal from the Canadian market, citing regulatory changes which the company described as “untenable.” Meanwhile, in Europe, the company has faced regulatory pushback, including an investigation into alleged “aggravated money laundering” in France and its exit from the Dutch market due to the absence of a virtual asset service provider license.Binance’s withdrawal from European markets has been attributed to its efforts to comply with the European Union’s approved Markets in Crypto Assets (MiCA) regulations, although there are reports indicating collaboration between European regulators and the SEC in their investigations into Binance.Eastern expansionWhile Binance has been facing ongoing setbacks in Western markets, it continues to expand eastwards. Late last month, the firm announced plans to establish a dedicated platform in Japan. Around the same time, it secured a trading license through its Thai joint venture company.Binance is not the only major crypto firm making a strategic shift towards Asia. Other global cryptocurrency exchanges such as Gemini and Coinbase, have also expressed their intention to strengthen their presence in the Asia Pacific region. This trend highlights a broader pattern of the crypto exchange landscape gradually shifting towards the East, reflecting a reconfiguration of the global market.As Binance expands its regulated operations in Kazakhstan, it aims to navigate the complex regulatory environment and continue providing secure and compliant services to users in a key market. The move not only positions Binance strategically but also underscores the evolving dynamics that may well be playing into a regional shift in leadership where the development of digital assets is concerned.

The South Korean National Tax Service (NTS) is reportedly in the process of setting up virtual asset accounts for its district offices. This initiative is aimed at confiscating and liquidating the digital assets of individuals who fail to pay their taxes. This move comes after the creation of similar accounts by public prosecutors' offices, leading to speculation in the crypto industry that virtual asset accounts will soon be allowed for corporate entities as well.Photo by Nataliya Vaitkevich on PexelsDirect confiscation of virtual assetsA report by the local news outlet Etoday today has revealed that each district office of the NTS is working towards establishing a virtual asset account. This development will empower the tax agency to directly sell virtual assets confiscated from tax delinquents. Previously, the NTS would freeze the accounts of overdue taxpayers at Korean cryptocurrency exchanges, compelling them to convert their assets into Korean won. These funds were then confiscated by the NTS. The new initiative is set to streamline the process, enabling the tax authority to directly confiscate virtual assets without the intermediary step of conversion to Korean won. Speaking about this development, an NTS officer said that as each district office director holds the authority to collect taxes from taxpayers with overdue payments, it's necessary for each office to have its own account. Prosecutors’ Offices’ Upbit and Bithumb accountsThe crypto industry views this development as a potential step towards allowing the creation of virtual asset accounts for corporate entities, starting with government agencies. In December, the prosecutors' offices established their entity accounts at major cryptocurrency exchanges Upbit and Bithumb. Since then, the prosecution has utilized these accounts to sell confiscated virtual assets, aiming to recover funds that had not been collected.  An official from a cryptocurrency exchange indicated that the South Korean government is currently focusing on allowing entities that serve the public good to own virtual asset accounts. This approach is seen as the starting point, with expectations that the trend will gain momentum in the future. The official added that it's rare for the government to provide blanket permissions from the outset, suggesting a gradual and cautious approach to the integration of virtual asset accounts.Money laundering concernsMeanwhile, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC), along with other financial regulators, has remained silent on the matter of virtual asset accounts for corporate entities. This reticence stems from concerns with the financial authority that the introduction of corporate crypto accounts could potentially lead to money laundering and the creation of slush funds. An official from the National Assembly’s National Policy Committee said that they have not received any comments from the financial authority in response to inquiries about plans to allow such accounts for corporate entities. The current law doesn’t prohibit corporate entities from trading virtual assets. However, under the auspices of the financial authority, banks have refrained from offering real-name accounts to corporate entities. This policy has been a point of contention within the crypto industry. Advocates argue that allowing corporate accounts could mitigate issues of market manipulation and challenge the dominance of Upbit in the Korean cryptocurrency market.  The official from the cryptocurrency exchange pointed out that the financial authority does not have a clear legal basis for prohibiting the creation of corporate crypto accounts. They suggested that the regulator should develop clearer guidelines and enforce these rules for corporate entities. More serious discussions in AprilMore serious discussions about the introduction of corporate crypto accounts are anticipated to take place in April, following the conclusion of the general election. Last month, the main opposition party, the Democratic Party of Korea, made election promises to open the crypto market to institutional investors. Meanwhile, the ruling People Power Party has been quietly deliberating on virtual asset policy. Despite these political movements, earlier reports indicate a disconnect between the political parties' efforts to relax crypto regulations and the financial regulator's stance. Meanwhile, Hwang Seok-jin, a professor at Dongguk University’s Graduate School of International Affairs and Information Security, expects to see a conclusion on the permission of corporate crypto trading by the end of this year. He said that there has been ongoing discussion about the approval of spot Bitcoin exchange-traded funds (ETFs) and that allowing the trading of such funds requires the ownership of virtual assets by institutions. 

Wemade Leverages Blockchain to Host Professional Women’s Golf Tournament in BusanWemade, a blockchain game company headquartered in South Korea, is gearing up to host a professional women’s golf tournament at the Haeundae Beach Golf and Resort in Busan, the nation’s southern port city. The tournament is scheduled to take place from November 18 to 19.Photo by mk. s on Unsplash1 million WEMIX prize poolThe event, titled the WEMIX Championship 2023, will showcase the top 20 KLPGA Tour golfers in the WEMIX point ranking, along with four invited players. They will vie for a prize pool of 1 million WEMIX, which, as per CoinMarketCap, is trading at $0.5585 at the time of publication. The tournament will be live-streamed through the SBS Golf television channel.The WEMIX point ranking, established in collaboration with SBS Golf, is determined by assessing the performance and results achieved by members of the regular Korea Ladies Professional Golf Association (KLPGA) Tour.NFT tickets and souvenirsDuring this event, Wemade’s DAO and NFT platform, NILE, will showcase non-fungible tokens (NFTs) that represent admission tickets and official souvenirs. These NFTs will be available for purchase on the NILE marketplace starting in October, giving golf enthusiasts the opportunity to acquire them.By integrating blockchain technology into the golf tournament, Wemade is expected to deliver a fresh and innovative experience for both organizers and spectators alike.Furthermore, Wemade aims to increase its investment in the WEMIX Championship, with the goal of enhancing the tournament’s reputation as a prestigious season-ending event.