Galaxia Moneytree partners with Charzin to integrate security tokens into EV charging systems

Xxsoft, an information technology firm based in South Korea, announced today that it entered a partnership with a blockchain firm Infinite Block, local media outlet Kyunghyang Games reported. Xxsoft is the operator of CryptoTax, a tax and accounting service specializing in crypto assets. The two companies aim to provide crypto custodial and accounting services for companies and enterprises.Photo by Sarah Elizabeth on UnsplashCryptoTax specializes in handling crypto investors’ taxation using algorithms designed to process crypto tax and accounting. These algorithms were developed with participation from tax accountants and accountants with expertise in crypto assets. CryptoTax also offers a solution as a service (SaaS) called Cryptotax Enterprise, which offers corporate clients the advantage of automated tax processing with direct access to accounting documents.  Meanwhile, Infinite Block is a key management service (KMS) provider based in Korea, serving clients ranging from startups to big firms. The company provides crypto wallets catering to individual clients’ needs, from internet-enabled hot wallets to cold wallets that keep private keys offline. Infinite Block employs multi-signature technology and multi-party computation to securely protect clients’ private keys. Rising demand for institutional crypto accountingYoon Dong-hwan, CEO of Xxsoft, said the shift in crypto regulations – as seen in events like the approval of spot Bitcoin ETFs by the U.S. Securities Exchange Commission – will result in higher demand for crypto custodial services compliant with financial authorities. He stated that the partnership with Infinite Block will allow the company to provide a convenient service tailored to the needs of corporate clients.  Jeong Gu-tae, CEO of Infinite Block, highlighted the importance of companies being equipped with a fully compliant internal control system when it comes to crypto taxation and accounting, because firms are subject to stricter regulations compared to individual investors. Jeong reaffirmed the company’s commitment to building a healthy local crypto market, saying that it will continue developing effective crypto asset management systems for corporations in close cooperation with CryptoTax.  

Korea’s Virtual Asset User Protection Act to Take Effect in July Next YearThe Virtual Asset User Protection Bill was passed during the South Korean National Assembly’s plenary session last Friday, according to a report by news agency Newsis. The legislation aims to safeguard customer assets, establish regulations against unfair trading practices, and enforce penalties. The act is scheduled to take effect one year after its passage.Photo by KS KYUNG on UnsplashDefinition of virtual assetsUnder the act, a virtual asset is defined as a digital representation of economic value that can be digitally traded or transferred. It’s important to note that central bank digital currencies (CBDCs) are not considered virtual assets. Virtual assets with characteristics of securities will initially fall under the jurisdiction of the Capital Market Act.Roles of Korea’s central bankThe act grants the Bank of Korea (BOK) the authority to request data and information from virtual asset service providers (VASPs). This provision is deemed necessary for the Korean central bank to formulate monetary and financial policies, despite virtual assets not being equivalent to traditional currencies.Responsibilities of VASPsMoreover, VASPs are obligated to segregate users’ virtual assets from their own holdings. VASPs are also required to reserve the same type and quantity of virtual assets entrusted by users and maintain a certain proportion of these assets in a cold wallet, which is an offline storage solution.Unfair trading practices will be regulated in a similar manner as outlined in the Capital Market Act. The act specifically prohibits the use of undisclosed information, price manipulation, fraudulent transactions, and trading of self-issued virtual assets. VASPs are barred from suspending deposits and withdrawals without legitimate reasons. They are also mandated to monitor suspicious transactions and take appropriate measures to safeguard users. Any suspected unfair trading practices must be promptly reported to financial authorities. Violators of these rules may face criminal penalties, liability for damages, and potential class action lawsuits.Powers of financial authoritiesThe act also clarifies the powers of financial authorities in supervising, inspecting, and taking action against virtual asset operators. Unfair trade practices can result in imprisonment for more than one year (up to 10 years for violations related to self-issued virtual assets) or fines ranging from three to five times the illicit gains. Assets acquired through unfair trade practices will be confiscated, or an equivalent value will be charged if confiscation is not feasible.Impact on crypto investigationsThe absence of legislation directly addressing unfair trading practices in the virtual asset market has posed challenges for prosecutors. They had to rely on existing statutes related to fraud, the capital market, and financial investments. Once the new act takes effect, prosecutors will no longer need to determine whether a virtual asset qualifies as a security or not.Regarding this development, a prosecutor told local legal news outlet Law Times that the implementation of the new act will escalate prosecutorial investigations into cryptocurrency incidents.Meanwhile, the individuals behind the crash of Terraform Labs’ stablecoin TerraUSD and its sister coin Luna will not be subject to this act due to the legal principle of nulla poena sine lege, which prevents the retrospective enforcement of criminal laws. Do Kwon, co-founder of Terraform Labs, was recently sentenced to four months in prison by a Montenegrin court for passport forgery after being arrested in March. The other co-founder, Daniel Shin, has been indicted by prosecutors in Korea.

Further Setback for Luno With Loss of Top ExecGlobal crypto exchange Luno has been challenged of late, with job cuts, the closure of its presence in Singapore and now the loss of a key executive from the company.According to a report published by CNBC on Tuesday, the embattled crypto firm is losing Vijay Ayyar, its Vice President of Corporate Development and International. The setback follows an announcement last month by the company to withdraw its presence from the Singaporean market.Photo by Marten Bjork on UnsplashUnrelated to Singapore closureAyyar made the following comment via WhatsApp message: “I’ll be leaving Luno after 7 years at the company. Given the time I’d spent at Luno, it just seemed like it was time for another challenge.” It’s understood that Ayyar has confirmed that Luno’s move to exit Singapore (where he was based) was not related to his own decision to move on. Instead the top executive has said that he will be joining another company within the crypto and over-arching Web3 space.Luno management had previously outlined that its decision to exit Singapore formed part of an overall “evaluation of [its] global strategy and presence.” As part of its retreat from that South East Asian market, it withdrew its licensing application from consideration by the local regulator, the Monetary Authority of Singapore (MAS).At the time of that announcement, the company stated: “ It’s not a decision we’ve taken lightly. It’s always been our mission to put the power of crypto in everyone’s hands. This is still true.”Organizational changesThe company is clearly going through a period of adjustment from a staffing and resourcing perspective. Last month, Luno announced that its co-founder, Marcus Swanepoel, would be stepping down as CEO. Filling his boots in that role will be Luno’s Chief Operating Officer (COO), James Lanigan.This organizational upheaval follows a further setback in January, when the company announced a 35% cut in headcount. The decision for those job cuts was taken as a knock on reaction to what had been a very challenging trading environment for Luno and crypto companies generally during a year long crypto bear market in 2022.A troubled parent companyLuno’s difficulties have been further compounded given that it is a portfolio company of crypto industry conglomerate, Digital Currency Group (DCG). DCG had acquired the company in 2020. DCG also owns digital assets-focused financial services firm Genesis which filed for bankruptcy in January. It owes $575 million to Genesis in a scenario that places DCG itself in default risk.Genesis and DCG have recently entered into a 30 day mediation process in order to reach a resolution relative to creditors who participated in the Gemini Earn programme associated with the Gemini cryptocurrency business run by Cameron and Tyler Winklevoss.As yet DCG has not sought to sell off any of its portfolio companies which includes Grayscale, CoinDesk and Foundry. However, it’s understood that Luno has hired investment bank Canaccord Genuity in an effort to garner suitors who would be interested in investing in the company. This may be part of a plan to unburden the troubled DCG parent company.