Senior Gyeonggi Officials Required to Declare Virtual Asset Holdings by Sept 1

Ground X Teams Up with Oasys for Digital Wallet and SDK CollaborationGround X, the blockchain subsidiary of South Korean conglomerate Kakao, announced on Wednesday that it has entered a strategic partnership with Oasys, a Japanese blockchain gaming platform.Through this partnership, Ground X and Oasys aim to collaborate on multiple fronts and onboard each other’s respective Web3 ecosystems. Ground X said that it will participate as a partner company in Oasys’ Web3 ecosystem, collaborating with other Japanese blockchain and gaming firms.Photo by GuerrillaBuzz on UnsplashSDK sharingIn particular, Ground X also plans to provide a software development kit (SDK) that will enable game developers around the world to embed digital asset wallets into their services by leveraging the convenience and technical capabilities of Kakao’s digital wallet, Klip.“By providing the embedded SDK through this partnership, this will serve as an opportunity for Ground X to expand globally by attracting more Klip users,” said Kim Tae-geun, Head of the Business Group Division at Ground X.Dominic Jang, Head of Business Development at Oasys, expressed similar sentiments, stating, “This Klip wallet SDK will allow Oasys’ partners in the gaming industry to operate more smoothly, serving as valuable infrastructure.”NFT allianceOasys will also become a member of GRID — Ground X’s alliance of over 130 local companies aimed at popularizing and fostering non-fungible token (NFT) usage in Korea. Ground X will subsequently share with Oasys the expertise it has gained through success stories of various NFTs on Klip. Through a combination of all these efforts, the company’s goal is to expand the local NFT business ecosystem and increase opportunities for networking and joint marketing between Korean and Japanese companies.“Ground X is at the forefront of Kakao’s blockchain business and has accumulated a wealth of expertise in the blockchain field. Through our collaboration with them, the Oasys ecosystem gains a strong partner,” Jang emphasized.In addition, Ground X is participating as a partner company and panel judge in a blockchain hackathon organized by Oasys and XPLA.

South Korea Reveals Guidelines for Public Officials’ Virtual Asset DisclosureSouth Korea’s high-ranking government officials will soon be obliged to divulge specific information regarding their virtual asset holdings, including types and quantities, as part of their wealth declaration process. The Ministry of Personnel Management (MPM) issued a press release yesterday, announcing revisions to the Enforcement Decree of the Public Service Ethics Act. These amendments are slated to come into effect on December 14.Photo by Chris Boland on UnsplashIn addition, officials holding positions of rank one or higher will be required to disclose the methods through which they acquired their virtual assets. They must also furnish documentation of transaction records for a period of one year.These amendments to the decree come in the wake of the revised Public Service Ethics Act, which was passed in May. The primary aim of this act is to make it obligatory for government employees to declare their virtual asset holdings. The changes to the decree can be summarized into five main points.Types and amountsFirst, officials obligated to disclose their wealth must report the types and amounts of virtual assets. The prices of virtual assets traded on Upbit, Bithumb, Coinone, and Korbit — all virtual asset service providers (VASPs) designated by the Commissioner of the National Tax Service — are required to be reported using the average daily price observed on the reporting day. As for other assets, their values should align with their most recent market prices. In cases where determining these prices is not feasible, they should be reported at reasonable values that reflect transaction prices.Acquisition methodsSecond, high-level public officials must explain how they acquired virtual assets. Under the existing regulation, officials are obligated to reveal both the date and method of acquisition, along with the source of funds. However, following the adoption of the updated decree, they will also be required to provide analogous information for virtual assets.Year-long transaction historyThird, comprehensive guidelines will be established to outline the process of reporting virtual asset transaction history records. Officials subject to the disclosure requirement must divulge all virtual asset transactions conducted within the past year, even if they do not possess such assets on the day of reporting. They are obligated to furnish documentation prepared by VASPs.Officials and their family membersFourth, officials are required to permit VASPs and other relevant institutions to provide the Government Ethics Committee with information on virtual asset holdings owned by both themselves and their family members. This will be facilitated through the inclusion of virtual assets in the existing information provision agreement, similar to the approach applied to other types of assets such as real estate.Addressing conflict of interestLastly, the revised decree could potentially impose restrictions on certain public officials with regard to possessing virtual assets, especially when their responsibilities encompass tasks like formulating relevant policies, granting approval for virtual assets, and overseeing taxation matters related to them. The outcomes of these restrictions will be reported on an annual basis to the Government Ethics Committee.In a briefing regarding this development, MPM Vice Minister Lee In-ho underscored the significance of the amended decree as the regulatory framework for enforcing the requirement of public officials to declare their virtual assets. He highlighted the Korean government’s commitment to ensuring that public servants adhere to accurate reporting practices concerning virtual assets, thereby preventing unlawful accumulation of wealth.

Tongli Han, the CEO and CIO of Harvest Global, has expressed openness to the possibility of applying to offer Bitcoin and Ether exchange-traded funds (ETFs) to mainland Chinese investors through the Stock Connect program. This consideration is contingent on favorable developments in the next two years. Harvest Global, along with China Asset Management (ChinaAMC) and Bosera HashKey, recently launched Asia's first spot Bitcoin and Ether ETFs on the Hong Kong Stock Exchange, aligning with Hong Kong's ambition to establish itself as a global cryptocurrency hub. Han's remarks were delivered during the Bitcoin Asia conference in Hong Kong, underscoring the potential for expansion into the mainland Chinese market.Photo by Jimmy Chan on PexelsUncertain regulatory landscape and growth prospectsDespite the introduction of spot crypto ETFs in Hong Kong, uncertainty looms over mainland Chinese investors' access to such products through the Stock Connect program. China's regulatory stance towards the cryptocurrency industry remains stringent, with most commercial crypto activities prohibited on the mainland. While there is speculation regarding the potential inclusion of crypto ETFs in the eligible securities list of the Stock Connect program, approval remains uncertain. The debut of Hong Kong's spot crypto ETFs recorded modest trading volumes compared to their U.S. counterparts, signaling a cautious start. However, Han anticipates the potential for growth in the Asia region, envisioning the Hong Kong ETFs to potentially double the size of their U.S. counterparts. Despite differing opinions on growth prospects, market observers highlight challenges such as the relatively small size of the Hong Kong ETF market and restrictions on mainland Chinese investors' participation, underscoring the complexities facing the expansion of crypto ETFs in the region.