Korbit Passes Post-Audit for ISMS-P and ISO Certifications

Bitkub Addresses Market Conditions Thru Job CutsBitkub Capital Group, the parent company of Thailand’s largest digital asset exchange Bitkub Online, has made adjustments to its workforce and employee benefits in an effort to manage costs during challenging economic conditions.Photo by Braden Jarvis on Unsplash5.5% staff reductionAccording to a statement released on Wednesday, approximately 5.5% of personnel within the Bitkub Capital Group have been let go, while around 2% of staff at Bitkub Online were also affected.Contrary to reports in local media suggesting that half of the company’s employees were terminated in late June, Bitkub Capital Group clarified that the reduction in workforce was relatively small compared to the overall number of employees in the group.Change in employee benefitsThe company did not provide specific details about the changes in employee benefits, only stating that one perk had been removed. The decision to implement these measures stems from the current economic downturn and the need to manage costs effectively, Bitkub explained.Bitkub Capital recorded a net profit of 1.3 billion baht ($37.49 million) in 2022, marking the second consecutive year of profitability for the company. However, net profit declined by 39% compared to the previous year, falling from 2.1 billion baht in 2021. Expenses also surged from 117 million baht in 2021 to 394 million baht in 2022.Bitkub Capital Group encompasses various entities in addition to the crypto exchange, including Bitkub Ventures (the venture capital arm), Bitkub Labs (also known as Bitkub Academy, the education arm), Bitkub Blockchain Technology (a consulting company focused on blockchain), and Bitkub Infinity (a portfolio management service provider).Bitkub Online, the crypto exchange unit, reported a profit of 341 million baht for the financial year ending on December 31, 2022, representing an 86% decline compared to the previous year. Total revenues for 2022 amounted to 2.8 billion baht, which marked a significant decrease of 48% compared to its peak performance in 2021 when it generated 5.5 billion baht in revenue.In a separate development, Asphere International, a game publisher listed on the Bangkok Stock Exchange, recently acquired a 9.22% stake in Bitkub Online for 600 million baht, valuing the startup at 6.5 billion baht.Broader regional trendThe downsizing at Bitkub reflects a broader trend among technology companies in the region. In June, aCommerce, a local e-commerce enabler, laid off at least 20 employees citing similar economic challenges. The same month, Grab, the Singapore-based ride-hailing and food delivery giant, announced a significant round of layoffs, with 1,000 employees, including the Thailand team, being let go.Bitkub’s decision to adjust its workforce and streamline employee benefits is a response to the economic headwinds it faces. It’s not the company’s first setback. Last year, Thailand’s Securities and Exchange Commission (SEC) penalized the firm’s CTO, Samret Wajanasathain, on the basis of insider trading.The cyclical nature of the digital asset exchange business means that Bitkub can seek to weather this storm and benefit from the upside once market conditions inevitably become more favorable in the not too distant future.

Korea’s FSS to Collect Public Comments on Financial Statement Guidelines for Virtual Asset EntitiesThe South Korean Financial Supervisory Service (FSS) has revealed a set of exemplary financial statements aimed at clarifying the disclosure requirements of virtual asset-related entities. These guidelines have been designed to align with the Korean version of International Financial Reporting Standards (K-IFRS), which was established by the Korea Accounting Institute (KAI).It was reported earlier this month that the Financial Services Commission (FSC) brought forward these regulations to tackle accounting uncertainties within the blockchain industry.The main goal of these exemplary guidelines is to help entities provide financial statement readers with essential information regarding virtual assets. This includes details about the reserve amount held by virtual asset issuers and information about the virtual assets held by virtual asset service providers (VASPs).Photo by Kelly Sikkema on UnsplashPresentation sessionsTo ensure effective dissemination and understanding of these guidelines, the FSS, KAI, and the Korean Institute of Certified Public Accountants (KICPA) have planned presentation sessions. These sessions will take place from July 26 to August 11, which will involve visits to VASPs, listed companies, and accounting firms. Valuable feedback and suggestions from these stakeholders are anticipated, as the events encourage open two-way communication and welcome participation from anyone interested.Discussion meetingsTo further refine the ideas put forward during the presentation sessions, two separate discussion meetings with experts are scheduled for September and October. The recommendations gathered from the industry will undergo a careful review by experts and be thoughtfully incorporated into the guidelines.The FSS will finalize the guidelines in cooperation with the FSC, and the Securities and Futures Commission under the FSC will review them and give approval for their implementation. This is expected to take place between October and November.The FSC has stated that these exemplary guidelines are currently in their preliminary stage and open to potential changes during the public comment period. Additionally, companies have the flexibility to make necessary adjustments to these practice guidelines to suit their specific needs and requirements.Issuers, holders, exchangesThe exemplary practice guidelines are specifically targeted at three types of entities: virtual asset issuers, virtual asset holders, and virtual asset trading exchanges.For virtual asset issuers, providing essential information about their virtual assets is a key requirement. This information should encompass their business models, accounting policies, obligations (e.g. whitepapers), and the current status of their projects. Such details should be disclosed in the annotations of their financial statements. Furthermore, revenue generated from the sales of virtual assets must be recognized, and any changes to their obligations should be duly noted. Moreover, disclosure of the reserved amount of issued virtual assets and their intended usage plan is mandatory.Companies holding virtual assets must provide information regarding accounting policies, the total value of assets held, the reasons behind their holdings, and any gains or losses incurred. Additionally, holders are obligated to disclose risks associated with virtual assets and their potential impact.Virtual asset trading platforms, such as exchanges, are mandated to disclose not only their own virtual asset holdings but also those held on behalf of their customers. This disclosure should encompass detailed information about their accounting policies, the total value of assets under their custody, associated risks, and the involvement of third-party custodians. In particular, the platforms must indicate whether they treat customer assets under their custody as assets or liabilities and provide a clear rationale for such classification in the annotations of their financial statements.

Korean Lawmakers Complete First Rough Draft of Virtual Asset User Protection BillKorean lawmakers have completed the first rough draft of the virtual asset user protection bill at a National Policy Committee meeting held later last month.©Pexels/Matthias ZomerAgreeing on term usage ‘virtual assets’So far, 18 bills have been proposed to regulate cryptocurrencies, and the lawmakers and the Financial Services Commission (FSC) agreed to use the term “virtual assets” to encompass similar terms such as digital assets and crypto assets.Phased enactment of billsThe bills are likely to be reviewed under the title “Virtual Asset User Protection Act.” The bipartisan group agreed to enact the bills in phases, introducing the user protection bill in the first phase and the virtual asset listing and issuance bill in the second phase.Meanwhile, there were mixed opinions on the content of the bills. In particular, there was debate over whether the bills should stipulate that the central bank digital currency (CBDC) is excluded from virtual assets, and whether the bills should include a standard for determining if a virtual asset is a security.Debate over stipulating CBDC’s statusThe stipulation of excluding CBDC from virtual assets was the most divisive topic since it would lead to defining the conditions for other assets such as non-fungible tokens. Moreover, the Act on Reporting and Using Specified Financial Transaction Information, which currently regulates virtual asset service providers (VASPs), does not contain any stipulation on CBDC. Some raised concerns that such discrepancies could later cause confusion. In the end, assembly members decided to discuss the matter again in April after consulting with the Bank of Korea and the Ministry of Government Legislation.Criteria for classifying virtual assets as securitiesRegarding whether to include criteria for classifying virtual assets as securities, the lawmakers and financial regulators took different sides.Lee Yong-woo, a member of the Democratic Party of Korea, underlined that a clear statement of the relationship between the issuer and the recipient of virtual assets in a whitepaper can determine their security status. He added that such provisions should be included in the bills.Park Min-woo, an FSC official, on the other hand, commented on a cautious note that in case virtual assets fall under the category of securities, they may not be applicable to the virtual asset act. He explained that VASPs might deal with both securities and virtual assets, and in such cases, there could be a misunderstanding that VASPs are not subject to the virtual asset act simply because they trade securities.