Turkey considers limited tax on crypto transactions, not profits

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.

South Korean Job Seekers to Benefit from Digital Badges for License CredentialsSouth Korean job seekers will soon be able to enjoy the convenience of proving their license credentials with digital badges based on non-fungible tokens (NFTs).The South Korean Ministry of Employment and Labor has announced that its affiliate, the Human Resources Development Service of Korea (HRDK), plans to create a mobile application that supports virtual asset wallets. These wallets will allow citizens to conveniently store their HRDK-issued licenses in the form of digital badges.Photo by Gül Işık on PexelsNFT-based digital badgesThese digital badges, which are based on NFTs, will also serve as proof of certification for HRDK’s education and training courses. Decentralized identifiers (DIDs) based on blockchain technology will prevent forgery and counterfeiting and improve personal information protection. The incorporation of gaming elements within NFTs is expected to motivate citizens to engage in continuous learning.Chosen as this year’s state-led blockchain initiative last December, the digital badge project is supported by the Ministry of Science and ICT (MSIT) and the Korea Internet and Security Agency (KISA). HRDK aims to complete the transformation of its 18.5 million issued licenses into digital badges by the end of this year. The project also involves digitizing vocational training certificates issued by the Korea Employment Information Services (KEIS), which has an average annual issuance of 3.6 million certificates. Access to these badges will also be facilitated through not only state-managed mobile ID wallets but also private platform wallets.In the context of employment and career management, individuals have traditionally received paper certificates and had to deliver them to relevant organizations. This process often involved inconvenience, as it required in-person visits, mailing, or scanning. Moreover, individuals faced the hassle of repeatedly obtaining the same certificate due to expiration dates and storage concerns.Seamless certificate managementWith the introduction of the digital badge service, users will be able to download a mobile application on their smart devices. This app will enable them to access their national certificates, allowing them to view their qualification and training completion information at any time. Additionally, users will gain the convenience of instantly submitting or verifying their certificates remotely through their mobile devices whenever necessary.HRDK will further enhance its services through strategic partnerships with credentialing organizations from both the public and private sectors.Kim Young-joong, the Acting President of HRDK, emphasized the significance of national licenses and training certificates as objective measures of individuals’ performance and skills, underscoring their importance in the employment landscape. He further expressed HRDK’s commitment to ensuring customer satisfaction by leveraging cutting-edge technology and efficient data management practices to drive innovation in public services.

Concerns Hanging Over Huobi Result in Significant Net OutflowAmidst rumors swirling around its executives’ involvement in a Chinese investigation, Seychelles-headquartered cryptocurrency exchange Huobi has observed net outflows exceeding $73.3 million in the past week.Photo by Shubham Dhage on Unsplash$73 million net outflowAccording to data sourced from blockchain analytics firm Nansen, Huobi reported an outflow of tokens worth $505.9 million over the previous week, with an inflow of $432.5 million. This resulted in a net outflow of approximately $73.3 million.Notably, this net outflow seems to be gaining momentum, as the exchange witnessed an outflow of $32.9 million on Monday alone, based on Nansen data. Additionally, Huobi’s stablecoin balances experienced a significant 33% contraction, dwindling to $99.47 million within the seven-day span, as per the data.Unverified reportsHowever, the outflow of funds coincided with unverified reports. Techub News, a Hong Kong-based crypto media outlet, cited insider sources to suggest that at least three high-ranking Huobi executives had been apprehended by Chinese authorities for investigation. Huobi originated in China with Chinese founders, albeit it has based itself in Seychelles ever since the Chinese crackdown on crypto trading emerged.Huobi’s Head of Social Media, Jiayin Xie, acknowledged the rumors and likened the situation to being “invited to tea,” a colloquial Chinese expression for being summoned by authorities for questioning. Despite this, Xie expressed concern over the baseless nature of the allegations, suggesting that the path to restoration might be challenging yet necessary for the exchange’s resurgence.Justin Sun, an advisor to Huobi, responded cryptically by tweeting the number “4,” a term commonly used in the crypto community to counter FUD (fear, uncertainty, and doubt). He also retweeted Xie’s post, standing in defiance of the rumor.Alongside this specific difficulty, Huobi continues to grapple with financial challenges. Sun revealed that the exchange hadn’t posted a profit from last year’s third quarter to this year’s second quarter. Despite this, Sun remains optimistic, projecting a potential break-even in the present quarter and a return to profitability in the upcoming quarter.Crypto platform uncertaintyThe aftermath of widespread crypto platform failures in 2022 has resulted in both regulatory pushback and concern among the crypto community relative to the well-being of the platforms that remain standing. Both Huobi and Binance are front and center of this speculation and concern. The issue is that without independently verified audits carried out by reputable auditors, market participants simply have no way of telling if these platforms are solvent.Travis Kling, the Chief Investment Officer at Ikagai Asset Management didn’t mince his words in taking Houbi to task via Twitter: “You are clowns and criminals, and there’s a billion dollar hole in your balance sheet that customers will have to eat.” Kling has been equally scathing in his criticism of Binance and its founder Changpeng Zhao (CZ). Ikagai took a significant hit in the FTX collapse, and in its wake, Kling promised to speak out more and be more critical regarding emerging issues within the sector.As the net outflows coincide with reports of executive custody, the situation surrounding Huobi remains fluid. The exchange’s journey through these challenges will no doubt be closely monitored by the crypto community.