Korea’s FSS to Collect Public Comments on Financial Statement Guidelines for Virtual Asset Entities

Kazinform, the state-owned official news agency of Kazakhstan, has reported that the central Asian republic is working towards the establishment of a national crypto reserve. The news agency revealed that in answering an inquiry from a member of the Kazakhstan parliament, Timur Suleimenov, Governor of the National Bank of Kazakhstan, said that the central bank is currently studying information related to the formation and management of a national crypto reserve. Photo by engin akyurt on UnsplashFollowing best international practicePlans are being devised for a crypto reserve on the basis that best international practice as applied to sovereign wealth fund management is adopted. In this respect, guidelines related to transparency of accounting and secure crypto custody will be followed. The reserve will be established through an affiliate entity of Kazakhstan's central bank, specializing in alternative investments. In responding to the parliamentary inquiry, Suleimenov also revealed the likely source of funding for the fund. He stated: “International practice shows that the sources for such a reserve may include confiscated crypto-assets, as well as  cryptocurrencies mined by a crypto miner partially owned by the government.” Suleimenov outlined that while crypto assets have proven to be volatile and riskier than other asset classes, having the reserve controlled and managed by a central bank affiliate would result in the required levels of risk management and overall oversight being applied. According to Kursiv, a news organization focused on the Central Asian region, the authorities in Kazakhstan plan to amend relevant legislation so as to enable the effective management of the crypto reserve. Suleimenov stated that the central bank is open to discussing potential legislative amendments with members of Kazakhstan's parliament. The National Bank of Kazakhstan's governor also warned that misinformation by pseudo-business coaches related to cryptocurrencies needs to be curbed. He feels that in order to protect investors, and particularly young people, legal measures will be necessary in an effort to bring about greater transparency within the country’s crypto market. The authorities in Kazakhstan currently have a crypto regulatory framework in place that requires crypto trading platforms that extend their services to local users to have acquired a trading license from the Astana International Financial Centre (AIFC).  In May, it emerged that the Central Asian republic is planning to establish a pilot project for cryptocurrencies called “CryptoCity.” At the time, Kazakhstan’s president, Kassym-Jomart Tokayev, delivered a speech at the Astana International Forum outlining that the CryptoCity project would facilitate the use of crypto for the payment of goods and services within a specific geographical zone. Crypto hub potentialEarlier that month, the country’s First Vice-Minister of Digital Development, Innovation and Aerospace Industry, Kanysh Tuleushin, said that Kazakhstan had the potential to emerge as a leading cryptocurrency hub within the Central Asian region. Following the implementation of a ban on crypto mining in China in 2021, Kazakhstan experienced an influx of miners, attracted by cheap electricity. However, the arrival of miners was unplanned for, putting extreme pressure on the local electricity grid, resulting ultimately in brownouts and protests. The country once accounted for 27% of global Bitcoin mining. However, regulations introduced in 2023 led to the activity being scaled back considerably.

Samjong KPMG and Xangle to explore on-chain data for crypto accountingSamjong KPMG, the South Korean branch of accounting giant KPMG, is set to collaborate with digital asset data research platform Xangle to conduct a joint study focused on discovering different ways to apply on-chain data in the realm of cryptocurrency accounting. That’s according to a report by local news outlet The Korea Economic Daily.On-chain data encompasses all transaction records found on a blockchain. This type of data enables real-time verification of transactions, benefiting from the blockchain’s transparency and decentralized framework. Despite these advantages, the complexity of accessing and interpreting on-chain data is often seen as a barrier to entry, requiring specialized knowledge.Photo by Sasun Bughdaryan on UnsplashCrypto accounting and tax filingThe partnership between the two entities is poised to tackle challenges in the crypto sector faced by enterprises. Samjong KPMG will use this collaboration to improve their cryptocurrency consulting services, offering solutions in areas like virtual asset issuance, asset management and disclosure, internal controls and the accounting and tax filing complexities associated with cryptocurrencies.ERP solutions for virtual assetsMeanwhile, Xangle will have the opportunity to gain insights into the practical needs and concerns of businesses in relation to on-chain data as the company is currently developing enterprise resource planning (ERP) solutions for virtual assets. The joint effort will enhance Xangle’s ability to align technical data with real-world business applications.Park Sung-bae, a Partner at Samjong KPMG, commented on this development, stating that the accounting firm plans to utilize the outcomes of their joint study with Xangle to address the uncertainties surrounding virtual asset disclosure requirements. This initiative is aimed at improving accounting transparency within South Korea’s cryptocurrency market.Lee Hyun-woo, Co-CEO of Xangle, highlighted that the company has concentrated on establishing the necessary infrastructure for processing on-chain data and conducting research to deepen their understanding of it. He added that their latest collaboration with Samjong KPMG will enhance Xangle’s expertise in the areas of cryptocurrency taxes and accounting. Lee underlined the platform’s commitment to streamlining the accounting processes related to virtual assets, viewing it as an initial step towards facilitating broader Web3 adoption.

Assemble Protocol’s Native Token Now Supported by Ceffu’s Custody SolutionAssemble Protocol, a blockchain-based global point integration platform headquartered in Hong Kong, has announced a partnership with Ceffu, previously known as Binance Custody, according to South Korean blockchain news outlet Bonmedia.Ceffu serves as the sole institutional custody partner of Binance Exchange, the world’s largest cryptocurrency exchange based on trading volume. It started as a custodian platform in 2021 and underwent a rebranding from Binance Custody to Ceffu in February. Ceffu offers support for a diverse range of digital assets, including BTC, ETH, BNB, LTC, and XRP.Photo by rc.xyz NFT gallery on Unsplash$1M minimum depositThrough this collaboration, ASM, the native token of Assemble Protocol, has been included in the list of Ceffu’s supported assets, enabling ASM holders to securely store their tokens in the custodian’s cold storage. The custody service imposes a minimum deposit requirement of $1 million worth of digital assets.Reward points to ASM tokenAssemble Protocol offers users the ability to unify their reward points obtained from various debit and credit cards into ASM. By integrating these scattered rewards, users can conveniently manage and utilize their points through a unified digital currency. The platform also rewards participants within its ecosystem with tokens based on their contributions. The more participants contribute, the greater their rewards. Moreover, advertisers can pay fees to Assemble Protocol to promote their products within the ecosystem.Park Kyu-do, CEO of Assemble Protocol, expressed his appreciation for Ceffu’s support of ASM, emphasizing the security and transparency it offers for storing assets. Park also mentioned that the collaboration with the Binance ecosystem will lead to further expansion of the protocol.Meanwhile, Assemble Protocol plans to launch mobile and desktop versions of Assemble 2.0 later this year.