Korean financial authority to heighten oversight on token listing with new guidelines

South Korean Banks Adopt Blockchain for Streamlined Civil Servant LoansSouth Korea’s state-run financial organizations and banks are embracing blockchain technology to streamline the loan process for government employees and enhance loan management for banks.Photo by Shubham Dhage on UnsplashBlockchain-aided loan servicesIn a collaboration announced today at the Korea Federation of Banks (KFB) in Seoul, the Korea Financial Telecommunications and Clearings Institute (KFTC), the Government Employees Pension Service (GEPS), and four local banks are coming together to introduce blockchain technology in providing loan services specifically tailored for civil servants. The four participating banks are NongHyup Bank, Hana Bank, DGB Daegu Bank, and Gwangju Bank.Easier applicationAt present, civil servants are required to acquire a physical loan recommendation letter from the GEPS in order to apply for a bank loan. However, with the implementation of the new loan system, the GEPS will have the capability to issue blockchain-based letters, which can be obtained by civil servants either in-person or remotely at banks. This innovative approach will significantly simplify the verification process for these letters.Easier managementFurthermore, the manual exchange of loan-related information, such as repayment history and retirement details, between banks and the GEPS will be replaced by a more efficient system. The KFTC will take on the role of mediator, ensuring that any changes to this information are immediately reflected in real time. This streamlined approach will significantly enhance loan management for lenders.The launch of this service is scheduled for November this year, bringing about improved accessibility to loans for government employees. As the project progresses, other financial institutions are expected to join in, further enhancing the convenience of public servants. Additionally, these collaborating organizations will explore joint services aimed at providing the necessary support to stabilize the livelihoods of civil servants.

Japan’s New Tax Amendment Sparks Optimism for Crypto IndustryJapan’s National Tax Agency has recently announced a revision to corporate taxation rules regarding crypto assets, according to a report by local media outlet Coinpost. The amendment states the exemption of companies from taxes on unrealized gains with cryptocurrencies.Photo by Nataliya Vaitkevich on PexelsPrevious tax burden on crypto profitsPreviously, corporate tax at a rate of approximately 30% was imposed on profits from cryptocurrency holdings, including unrealized gains, as per the Japan Times. This regulation has been criticized for burdening companies and impeding innovation in the blockchain industry. In response, some companies had opted to conduct their business operations overseas. However, with the new amendment, the rules have been relaxed for virtual assets issued and held by their companies.Two conditions for tax exemptionThe National Tax Agency clarified the two conditions under which virtual assets issued by a company would be exempt from taxation. Firstly, the crypto asset must have been issued by the company and continuously held since its issuance. Secondly, the virtual asset must have remained under continuous transfer restrictions since its issuance, which can be achieved through either implementing technical measures to prevent the transfer to other parties or holding the assets in a trust that meets specific requirements.This revision in corporate taxation rules is expected to provide relief for businesses in Japan that deal with cryptocurrencies and encourage innovation in the domestic blockchain industry. The relaxation of taxes on unrealized gains may also incentivize companies to keep their operations within the country rather than seeking alternatives abroad.

The Dubai Land Department (DLD), a government agency responsible for the registration of real estate in Dubai and the promotion of real estate investments, has signed an agreement with the Virtual Assets Regulatory Authority (VARA), a local regulator, to better integrate tokenized real estate within existing systems. In a statement published on the DLD website on April 6, the government agency set out further details on the collaboration. The purpose of the agreement is to better accommodate fractional ownership of Dubai real estate through tokenization. Photo by Precondo CA on UnsplashLinking fractional ownership to DLD registryTo that end, a governance system will be put in place in order to link the DLD’s land and property registry with tokenized, fractional ownership of property. The parties believe that this approach will lead to greater operational efficiency for stakeholders such as property management firms. Furthermore, greater accommodation of tokenized ownership will lead to enhanced liquidity within the Dubai real estate market.  As a consequence of this improved liquidity and facilitating a more seamless approach in terms of operational efficiency for property management firms, it’s believed that a greater share of global investment in local real estate can be achieved. Broadening the investor baseFractional ownership via tokenized real estate opens the market up to a broader range of potential investors. On this basis, the collaboration can play a role in contributing towards the objectives of Dubai’s Real Estate Strategy 2033, which sets out to boost the local property sector’s contribution towards gross domestic product (GDP). That initiative targets a real estate market value of AED 1 trillion ($272 billion). The DLD said that the initiative also feeds into the broader objectives of the Dubai Economic Agenda (D33), a ten-year plan that has been set out to double Dubai’s economy by 2033, through focusing on innovation, achieving competitiveness at a global level and sustainable growth. Helal Almari, the director general of Dubai’s Department of Economy and Tourism, commented on the partnership, stating that it reflects the future-focused innovation, which he claims Dubai has already become associated with. He added: “Real Estate and Virtual Assets are key pillars of the D33 Economic Agenda D33 and by joining forces DLD and VARA will be creating the blueprint for RE 2.0 in a Decentralised Future Economy.” Almari expressed the belief that putting legal safeguards in place to recognize fractional ownership rights where real estate is concerned will facilitate “more inclusive economic participation” in this market sector.  The DLD recently launched a real estate tokenization pilot project in collaboration with VARA and the Dubai Future Foundation (DFF). At that time, DLD Director General Marwan Ahmed Bin Ghalita recognized the potential that tokenization can bring to the real estate sector. He stated: “By converting real estate assets into digital tokens recorded on blockchain technology, tokenization simplifies and enhances buying, selling, and investment processes.”Last month, Scott Thiel, founder and CEO of Dubai-based real-world asset (RWA) token marketplace Tokinvest, outlined that RWA asset tokenization in the United Arab Emirates (UAE) is gaining momentum. Commenting on this latest development, Thiel said that it’s a demonstration that “the future of real estate investment is onchain.”