Busan Introduces Blockchain-Powered Cards for Multi-Children Families to Offer Social Benefits

GS Group Supports Blockchain Startups in Korean Retail IndustryThe GS Challenge, an innovative startup accelerator established through a partnership between South Korean conglomerate GS Group and early-stage venture capital fund Bluepoint Partners, has launched a program dedicated to providing support to innovative startups, including blockchain ventures, in the retail industry.Photo by Alexandru Tugui on UnsplashBlockchain & other retail solutionsThe application window for this program opened on June 16 and will remain accessible until July 13. To be eligible, applicants have to be startups that possess retail technology and have a team consisting of two or more members. Retail technology encompasses a wide range of solutions aimed at improving businesses’ understanding of their customers, streamlining inventory management, and optimizing promotional events. These solutions leverage cutting-edge technologies such as artificial intelligence, big data, cloud computing, blockchain, and the Internet of Things (IoT).Three-month programThe screening process for applicants will involve thorough document reviews and meetings conducted by both entities. Successful applicants will have the opportunity to participate in a comprehensive three-month acceleration program scheduled from August to October. This program will offer valuable guidance on various aspects of running a startup, including consultations on legal, human resources, and financial matters.Extensive retail networkAdditionally, the selected startups will gain access to the GS Retail infrastructure to test their technologies and products. GS Retail boasts an extensive network consisting of 16,000 convenience stores, 400 supermarkets, as well as infomercial and e-commerce channels. This opportunity will enable the startups to test their technology and products in a real-world retail environment, facilitating practical application and market integration.Expressing the insights gained from a decade of startup investments, Lee Sung-hwa, the VP of Corporate Development at GS Retail, emphasized the value derived from collaborating with startups. Recognizing the mutual benefits, Lee highlighted that this collaboration would prove advantageous for both GS Retail and the participating startups. GS Retail can foster innovation in the industry, while the startups can accelerate their growth by leveraging the extensive GS Retail network.

Indonesia witnessed a striking decline in cryptocurrency tax revenue for the year 2023, according to local media. 63% decreaseA report by Indonesian business and financial publication Kontan detailed a tax take drop to $31.7 million (Indonesian rupiah 467.27 billion). That tax collection is in sharp contrast to the partial collection period in 2022 when the crypto tax regime was initially introduced. It represents a drop of around 63%. The decline is part of a broader tax reform targeting the "digital economy" implemented in 2022, with the Indonesian government expressing the expectation that the reform would enhance tax collection, fostering a "healthy and fair taxation system."Photo by Nick Agus Arya on UnsplashDeclining transaction volumesDespite bitcoin's impressive surge of approximately 160% throughout 2023, the dip in crypto tax revenue was notable. The decrease is closely tied to a drop in transaction volumes over the same period compared to 2022. A report by CoinDesk Indonesia last week put that trading volume decrease at around 60%. Crypto transactions in Indonesia face dual taxation – a 0.1% income tax and a 0.11% value-added tax (VAT). Additionally, local crypto exchanges are subject to a special tax of approximately 0.04%, contributing to the national digital asset bourse. Disadvantaging local exchangesLocal exchanges in Indonesia, including prominent ones like Indodax, have voiced discontent with the high tax rates, contending that these levies are driving users towards unregulated offshore exchanges. Earlier this month Indodax CEO Oscar Darmawan called on the Indonesian government to review crypto tax rates. Darmawan highlighted that the cumulative taxes on crypto transactions often surpass the trading fees paid by users, posing a risk of users seeking more cost-effective alternatives. Local exchanges suggest that crypto transactions should only be subject to income tax, eliminating the VAT component. This proposal comes as Indonesia's Financial Services Authority (OJK) prepares to implement cryptocurrency regulations in early 2025. The aim is to align the taxation of cryptocurrencies with their market nature, possibly redefining them more as securities than commodities. Inadequate tax regulation can lead to a decline in local market activities, potentially resulting in capital flight to more favorable jurisdictions. Indonesia's situation serves as a reminder of the crucial need for policies that understand and adapt to the dynamic nature of the cryptocurrency sector. India is being similarly challenged. Local exchanges there have also complained of punitive taxation, which resulted in Indian users migrating to offshore exchanges. That scenario led indigenous exchanges to lobby the government to take action. The authorities have duly acted, flagging a number of global exchanges for operating illegally within India. It’s not all bad news for the development of digital assets within Indonesia. The country still ranks highly in terms of crypto adoption within the Asian region. Crypto was also floated as an election issue recently by Gibran Rakabuming Raka, a vice-presidential candidate in the upcoming election. The politician expressed his commitment to accelerating the country's position as a leader in the digital revolution. 

Despite reports emerging on Monday that it had invested in Array, an algorithmic currency system, Singaporean state-owned conglomerate and global investment firm Temasek has denied any such investment.In a very brief statement published to its website on Tuesday, Temasek stated:“We have seen news articles and a tweet from Array about Temasek’s investment in it. This news is incorrect. Temasek has not invested in Array and we have no relationship with them.”CoinTelegraph had taken to reporting the claim on Monday. The article had outlined a $10 million investment by the Singaporean state investor into Array, the developer of an algorithmic currency system that relies upon smart contracts and artificial intelligence. Reputational lossIf it had been true, such an investment would have been seen as a positive for the crypto space as it would be indicative of a renewed appetite for crypto-based projects from the giant Southeast Asian investor.Temasek was a key investor in failed cryptocurrency exchange, FTX. In November 2022, the company had to write down its entire investment of $275 million into the fraudulently managed exchange business. To an onlooker, a $275 million write-down may seem like an extraordinary loss.However, given that the Singaporean investing behemoth has a $403 billion dollar portfolio, the loss represents just 0.09% of that portfolio, hardly making a dent in the health of the company.The greater loss for Temasek relative to the FTX collapse has been reputational. Top tier venture capital investors like Temasek, who had otherwise been assumed to be the most diligent of actors in the professional investing world, were all sharply criticized for failing to identify the extent of the mismanagement and fraud that had occurred at the now bankrupt cryptocurrency exchange. Bogus ClaimsIn fairness to those who had reported the fake news, they were acting on information that Array had put out into the ether and as of yet, has not corrected. At the time of publication, the project’s website features a list of renowned investors including Temasek. Alongside Temasek, Array claims to have obtained investment from Standard Chartered, Coinbase Ventures, Spark Capital, Khosla Ventures, The Blackstone Group, Binance Labs, Sequoia Capital and a16z.In the case of Binance Labs, a spokesperson for the venture arm of the global exchange told The Block that it is not an investor in the project. To further dispel the claim, Temasek took to Twitter, stating:”Fake news about Temasek’s investment in @Array_Protocol. We have seen news articles and a tweet from Array about Temasek’s investment in it. This news is incorrect. Temasek has not invested in Array and we have no relationship with them.” Further instances of misinformationThe misinformation follows a similar scenario that played out with OPNX, a newly launched platform that offers spot and futures trading, alongside the ability for investors to trade bankruptcy claims.A couple of weeks ago, the platform, which had been founded by Kyle Davies and Su Zhu, the key executives behind failed crypto hedge fund, Three Arrows Capital, asserted that it had the backing of some notable investors. Almost immediately, venture capital and market maker DRW and venture capital firm Nascent denied that they were investors in OPNX.