TRES secures $11M funding to expand multi-chain tax reporting

Korean Crypto Market’s Healthy Growth Requires Corporate ParticipationA healthy growth of the South Korean virtual asset industry needs the private sector’s investment in cryptocurrencies, a legal scholar argued at a recent international academic conference titled “Digital Financial Transition and International Trends in Commercial Law.”That’s according to a report by local news outlet Edaily. Namgung Ju-hyun, an assistant professor of commercial law at Sungkyunkwan University Law School, attended the two-day event hosted over the last weekend by the Korea Commercial Law Association to point out that the current restrictions on corporate investments in cryptocurrencies have not only increased speculation within the domestic market but have also hampered Korean companies’ endeavors in pursuing blockchain-powered projects.Banks and companiesProfessor Namgung addressed the current situation where Korean commercial banks are withholding real-name bank accounts from firms without specific legal grounds. This practice became common after the Act on Reporting and Using Specified Financial Transaction Information was revised in March 2021. This Act requires virtual asset service providers (VASPs) to adhere to anti-money laundering (AML) regulations; therefore, firms wishing to trade cryptocurrencies with the South Korean currency must have real-name accounts with domestic banks. While the Act doesn’t explicitly restrict issuing such accounts to corporations, banks have shown reluctance to do so.However, in countries like the United States, cryptocurrency trading in the corporate world is thriving. For instance, institutional investors at Coinbase, America’s largest crypto exchange, accounted for over 85% of the total trading volume in the first quarter, a rise from 76% during the same period last year.Photo by JESHOOTS.COM on UnsplashMinor altcoins’ strong presenceProfessor Namgung identified the prevalence of retail investors and their speculative behaviors as the primary issue plaguing the Korean crypto market. A case in point is a relatively large proportion of trades in minor altcoins. As per a report by the Korean Financial Services Commission (FSC), the combined market cap of BTC and ETH accounted for only 33% in the domestic market, a contrast to their 58.2% share in the global market. Namgung underscored that the high trade volumes of volatile crypto assets contribute to the Kimchi premium, a phenomenon where crypto prices in Korea are higher than those in other countries.Namgung also mentioned that Korean companies like Hyundai Motor, Lotte Homeshopping, and Shinsegae, despite promoting projects based on non-fungible tokens (NFTs), face difficulties due to their inability to convert cryptocurrencies to cash on domestic crypto exchanges. In comparison, global companies like Nike are successfully leveraging NFTs for their projects and exploring new business opportunities.Role of financial authoritiesProfessor Namgung urged Korean financial authorities to devise guidelines that encourage corporate participation in the crypto market, eliminating uncertainties. As a step towards risk management, he recommended considering publicly traded companies or established firms of a certain size as initial participants in the crypto market.Input from international scholarsPrior to Professor Namgung’s talk, the international academic conference also featured presentations from foreign scholars, namely Mirella Pellegrini, a professor at LUISS University of Rome; Marco Bodellini, an associate lecturer in banking and financial law at Queen Mary University of London; and Albert H. Choi, a professor of law at the University of Michigan Law School.Professor Pellegrini discussed personalized financial products and investor protection in the digital market from the perspective of the European Union. Dr. Bodellini provided insights into central bank digital currencies (CBDCs) from a policy perspective, while Professor Choi focused on digital transformation and retail shareholder engagement.

The Philippines is on track to finalize Project Agila, its wholesale central bank digital currency (CBDC) trial, by the end of this year. Three primary use casesThat’s according to statements made on March 6 by Deputy Governor Mamerto Tangonan of the Bangko Sentral ng Pilipinas (BSP) —  the Philippine central bank. According to a local news report by GMA News, the Deputy Governor outlined three primary use cases for the wholesale CBDC trials in a press conference: interbank settlement, settlement of securities transactions and cross-border payments. Notably, the Philippines is participating as an observer in the cross-border CBDC project mBridge, which involves China, Hong Kong, Thailand and the United Arab Emirates (UAE). Six domestic institutions are involved in the current tests in the Philippines: BDO Unibank, China Banking Corp, Land Bank of the Philippines, Rizal Commercial Banking, Union Bank of the Philippines and Maya Philippines.Photo by OJ Serrano on UnsplashUsing pilot as ‘learning exercise’Tangonan described the pilot as a "learning exercise in order to put us in a better position to assess whether this technology is what, itself, claims to be.” Typically, central bank accounts are restricted to commercial banks and some central counterparties in financial markets. However, the BSP intends for the wholesale CBDC to be accessible to banks and certain financial institutions. Nevertheless, past tests, including one in Canada, have highlighted potential limitations, such as the inability of brokers to use the wholesale CBDC for settlement. An ongoing interest since 2020The Philippines initially expressed interest in issuing a CBDC in 2020, with the BSP Monetary Board conducting a positive initial assessment of a wholesale CBDC and planning pilot tests from 2022 onwards, known then as Project CBDCPh. The launch of the pilot project was announced in April 2022. In 2023, the Southeast Asian country participated in a pilot study with the Digital Dollar Project, Western Union and BDO Unibank to explore a retail CBDC for remittance purposes. While the study found potential cost reductions and increased transparency and competition, it also identified challenges related to transaction speed, particularly due to most remittances arriving after working hours. Moving away from blockchainLast September, the BSP announced plans to utilize the Hyperledger Fabric blockchain. However, in February, Governor Eli Remolona stated that the CBDC would not be utilizing blockchain technology. At that time, the central bank Governor had indicated the expectation of launching a wholesale CBDC either next year or by 2026. Elsewhere in the Asian region, the Hong Kong Monetary Authority (HKMA) recently announced its own wholesale CBDC trials, Project Ensemble, underscoring the growing interest and activity in CBDC development across various jurisdictions. The Chinese autonomous territory is also cooperating with its colleagues in mainland China in participating in testing of the digital yuan or e-CNY, with a particular focus on cross-border payments.India represents another key Asian nation which has devoted quite a lot of time and resources to CBDC development already. However, a report last month suggested that the world’s most populous country has concerns with regard to the question of privacy relative to CBDC use. For that reason, it has determined the need to remain cautious while continuing CBDC development.  

Blockchain.com Secures License to Expand Operations in SingaporeBlockchain.com, the London-headquartered crypto financial services company, has achieved a significant milestone by obtaining a payment license in Singapore.Photo by Mike Enerio on UnsplashAsian expansionThe move signifies the platform’s expansion not only within Asia but also on a global scale. In a press release issued on Monday, Blockchain.com proudly announced its acquisition of a major payment institution (MPI) license from the Monetary Authority of Singapore (MAS) on August 1.The development follows an in-principle approval granted to Blockchain.com by the Singaporean central bank back in September 2022. With the newly acquired MPI license, the platform is now authorized to provide “digital payment token” (DPT) services to both institutional clients and investors in Singapore.Removal of transaction volume limitsUnder the regulatory framework of MAS’s Payment Service Act, the license grants Blockchain.com the authority to operate as a platform facilitating the exchange of various DPTs while also conducting DPT transactions themselves. An interesting facet of the license is that it liberates the crypto exchange from certain transaction volume limitations set within Singapore, as outlined on MAS’s official website.Expressing enthusiasm about this accomplishment, the Co-Founder and CEO of Blockchain.com, Peter Smith, lauded the crypto-friendly environment in Singapore. Smith commended the Monetary Authority of Singapore for its transparent regulatory process, on the basis that it strikes a balance between overseeing the crypto industry and fostering innovation. He stated:“We are thrilled to receive this license that will allow Blockchain.com to bring our industry-leading products and services to Singapore. We commend the Monetary Authority of Singapore on its transparent regulatory process that prioritizes crypto industry oversight while allowing innovation to thrive.”Over a decade in operationHaving been established in 2011, Blockchain.com boasts a reputable standing as one of the crypto industry’s pioneers. It’s most well known for its Bitcoin blockchain explorer and its wallet service. With a user base of 87 million active wallets and 37 million verified customers, the exchange business claims that it accounts for a large chunk of all Bitcoin network transactions.Singapore, heralded for its emergence as a crypto hub, has welcomed other crypto entities holding Major Payment Institution (MPI) licenses, including prominent stablecoin issuers Circle and Paxos. The city-state has drawn a significant influx of crypto businesses in recent years, supported by its well-defined regulatory framework and the government’s commitment to nurturing the burgeoning crypto landscape within its borders.Fostering Web3 innovationMAS has demonstrated that it is aligning itself with a dedication to fostering innovation, with its recently announced plans to allocate $112 million over a span of three years for the development of cutting-edge financial technologies. This initiative will encompass fintech solutions grounded in Web3 principles.Nevertheless, Singapore remains cautious about the potential risks associated with the crypto space. In July, MAS directed all crypto businesses within its jurisdiction to transfer user assets to statutory trust accounts before the end of 2023. This precautionary measure is likely to be a reaction to crypto failures such as that of crypto-lender Hodlnaut and crypto exchange FTX, which affected Singaporeans disproportionately. It aims to minimize the risk of asset loss or misappropriation.MAS also has moved to permit crypto firms to offer staking and lending services solely to institutional clients, imposing a ban on the retail market for these services.