NEOPIN Strengthens Japanese Market Strategy for Its Global Expansion

Korean Financial Watchdog to Penalize Bankers Involved in Illegal Foreign RemittancesThe Korean Financial Supervisory Service (FSS) recently completed an investigation into illegal foreign remittances of approximately 16 trillion KRW (~$12,137,718,400) that involved numerous bankers.©Unsplash/Paul FiedlerExploiting the kimchi premiumThe investigation, launched by the Korean financial watchdog last June, found that these lawbreakers sent funds to China, Hong Kong, and other overseas destinations through Korean crypto exchanges, trading firms, and bank branches with an aim of making money through arbitrage by taking the advantage of the kimchi premium, a term used to describe that the higher prices of crypto assets in Korean exchanges compared to their foreign counterparts.Bankers neglecting the KYC ruleSome of these bankers participated in the crime by raising the remittance cap and applying favorable exchange rates to trading companies that had no previous transaction records with banks. By law, bankers in Korea are obligated to follow the “know your customer” rule. It was found that 12 domestic banks and one futures firm were involved in this incident.The FSS has decided to impose strict penalties on these financial institutions, considering they were exploited for money laundering purposes. These entities are likely to have some of their services suspended, with the employees involved being fired.Accountability of top bankersOne key point to watch out for is whether the FSS would be able to hold executives accountable. Some say penalizing top bankers is not easy, given that it has to be proven that the employees’ criminal activities were due to a lack of executives’ internal control.The financial regulator recently announced plans to revise the law governing banks’ governance, but it is expected that such a bill would take some time to pass through the National Assembly.Through a revision of the law, the financial authority aims to hold top executives at financial institutions more responsible for serious financial accidents. It looks forward to bestowing top bankers with the obligation of comprehensive internal control management and making them accountable as an overall manager only in case of critical financial accidents. The term “top executives” in the bill will encompass not only bank presidents but also chairpersons of financial holding companies. More specific revision plans are expected to be revealed by the end of this month.

Startale Labs, the driving force behind initiatives such as the Astar Network smart contract hub and Startale Web3 Cloud, has secured a financial injection of $3.5 million. This backing, announced by Startale through a recent blog post, comes through a collaboration between UOB Venture Management, a subsidiary of the Singaporean financial giant UOB, and Samsung Next, the corporate venture capital arm of Samsung. UOB Venture Management is renowned for its equity financing in Southeast Asia and Greater China, bringing deep regional market insights to the table. Meanwhile, Samsung Next Ventures, an integral part of Samsung's innovation ecosystem, is dedicated to exploring cutting-edge technologies, including AI, fintech and blockchain, with a vision to shape the future of technology.Photo by Louie Martinez on UnsplashFunding talent acquisitionThe freshly acquired funds are earmarked for pivotal purposes, primarily focusing on bolstering talent acquisition and driving forward the development of Startale Labs' diverse product portfolio. Taking to the X social media platform, Astar Foundation Chief Operating Officer (COO) Shun Ishikawa confirmed that in light of the recent funding, Startale is hiring and it welcomes applicants to get in touch, particularly engineers. Moreover, alongside the $3.5 million capital injection, Startale also drew attention to a strategic alliance with Sony Network Communications to embark on a blockchain venture. With these combined resources, Startale aims to accelerate its development trajectory. Paul Ng, Executive Director of UOB Venture Management, emphasized the importance of real-world use cases in onboarding new users to Web3 technologies. Ng stated: "We are excited to support Startale, who have demonstrated expertise and experience in building successful Web3 products, in their mission to bring billions of users into the Web3 ecosystem.” Having made significant strides since its establishment in January 2023, Startale Labs has garnered support from these leading Asian enterprises within a remarkably short span. Sota Watanabe, CEO of Startale Labs, outlined the company's vision for the future, stating: "With the funds raised, we aim to invest in product development and recruitment to create a truly representative Web3 company of Asia and beyond." Through his X account, Watanabe expressed the intention that “we’re going to prove that Japanese startups can be successful in the world.”Sony joint ventureAn initial investment of $3.5 million by Sony in June of last year was followed in September by a collaboration between Sony Network Communications and Startale Labs, giving rise to the joint venture "Sony Network Communications Labs Pte. Ltd." This venture is dedicated to developing a blockchain infrastructure aimed at underpinning global Web3 initiatives. The objective is to harness blockchain advancements to create compelling use cases that foster wider adoption of Web3 technology. Sony Network Communications Labs is structured such that Sony Network Communications holds a 90% stake in the venture, with Startale Labs contributing the remaining 10%. Startale Labs' recent funding infusion, coupled with strategic partnerships with industry giants, appears to be putting the blockchain startup firmly on the road towards driving innovation and playing its part in shaping the future of Web3 technology. 

Korean Experts Advocate for Global Crypto Info Exchange to Combat Tax EvasionIn a recent event held to discuss the tax regime in South Korea, law professors offered a suggestion to combat tax evasion associated with cryptocurrencies. They proposed the implementation of a global cryptocurrency information exchange system for more effective response measures.Kim Beom-jun, a professor at the University of Seoul Law School, and Kim Seok-hwan, a professor at Kangwon National University Law School, delved into this matter last Friday at the tax administration forum that took place at the Korea Federation of Small and Medium-sized Enterprises (KBIZ).Photo by Karolina Grabowska on PexelsRising crypto adoptionAccording to their report, the cryptocurrency market is currently facing challenges stemming from the Terra-Luna incident and the broader economic downturn caused by rising interest rates and inflation. However, it’s worth noting that in Korea alone, there are approximately 6.27 million cryptocurrency exchange users, with a collective market capitalization of around KRW 19.4 trillion ($14.6 billion). This suggests that cryptocurrencies continue to integrate into our everyday lives.Crypto tax starting in 2025Starting in 2025, South Korea is set to impose taxes on income from cryptocurrency trading. However, before the tax is put into effect, there is a pressing need for administrative enhancements aimed at preventing tax evasion involving cryptocurrencies. These initiatives encompass the development of crypto-tracking technology and the allocation of sufficient staff and budgets to enable tax authorities to effectively address crypto-related issues.Foreign exchanges and DeFi platformsDuring the forum, experts voiced concerns about the possibility of tax evasion through the use of overseas crypto exchanges and decentralized platforms.Tax specialists pointed out that it’s difficult to expect people to fully meet their tax obligations when they’re trading on international exchanges. They also emphasized the challenges in collecting accurate tax information from crypto users who report transactions in overseas financial accounts.OECD’s initiativeIn August 2022, the Organization for Economic Co-operation and Development (OECD) gave the greenlight to the Crypto-Asset Reporting Framework (CARF). This framework aims to standardize the reporting of tax information related to crypto-asset transactions and facilitate the automatic exchange of such information. During the forum, researchers proposed that in the future, if Korea decides to participate in the OECD’s CARF, it should not only establish a cooperative system between virtual asset service providers (VASPs) and regulatory authorities but also revisit and amend pertinent laws.Additionally, presenters at the forum underlined the necessity of obligating taxpayers to furnish essential tax information for effective virtual asset taxation. They also stressed the importance of implementing appropriate sanctions in cases where taxpayers fail to comply with these reporting requirements.Commissioner Kim Chang-ki of the National Tax Service (NTS) stated that the agency is committed to enhancing tax accountability and transparency. He added that the NTS will take strong measures against malicious tax evasion activities, especially those involving online platforms.Furthermore, Commissioner Kim mentioned that the tax agency is boosting its investigative capabilities using scientific methods to combat emerging forms of tax evasion, like those related to virtual assets. He also said the NTS is expanding its international collaboration and devising other measures.