Concerns Hanging Over Huobi Result in Significant Net Outflow

Overseas Crypto Holdings Declared to Korean Tax Agency Amount to $98BIn a recent press release from the South Korean National Tax Service (NTS), it was revealed that this year, a record 5,419 Koreans declared overseas financial assets amounting to KRW 186.4 trillion. This is a notable jump from the previous year, marking a 38.1% rise in the number of declarants and an impressive 191.3% increase in the declared amount.Photo by Traxer on UnsplashRecord-breaking declarationsThese are the most significant figures reported since the 2011 inception of the overseas financial account reporting system, which requires Korean individuals and entities to disclose their foreign financial holdings, like savings, stocks, collective investment schemes, and derivatives, if their balance exceeds KRW 500 million.The NTS attributed the record-breaking figures to foreign crypto accounts, a new addition to this year’s overseas account declaration.Crypto’s dominanceVirtual assets comprised a staggering 70.2% of the total declared amount, overshadowing all other assets. 1,432 individuals and corporate entities reported crypto holdings amounting to KRW 130.8 trillion (approximately $98 billion).Decline in non-virtual assetsFor non-virtual asset accounts, including deposits, savings, and stocks, the reported figure stood at KRW 55.6 trillion, marking a year-on-year drop of KRW 8.4 trillion, or a 13.1% decline.Call for complianceIn the future, the NTS plans to leverage data shared between countries to rigorously check for potential non-compliance in reporting overseas financial accounts. Those suspected of omissions can expect strict actions, including fines, criminal charges, public name disclosure, and the collection of related taxes.After the reporting deadline, filers may be eligible for a penalty reduction of up to 90%. Importantly, tax agencies worldwide, including the NTS, are gearing up to share information like cryptocurrency transaction details under the Crypto Asset Reporting Framework. In light of this, the NTS strongly encourages those who haven’t yet reported but are obligated to to promptly declare their overseas virtual asset accounts.

Chinese Subsidiary of DBS Bank Launches e-CNY Product OfferingDBS Bank China, a cryptocurrency-friendly bank and subsidiary of the Singaporean multinational financial services firm DBS, has introduced a new solution for its customers in mainland China, facilitating transactions with the digital yuan.The bank has officially launched the digital yuan or e-CNY merchant solution, allowing businesses in mainland China to receive payments in the central bank digital currency (CBDC). The announcement of the new service offering was made via a press release published to the website of the parent company on Wednesday.Photo by Hanny Naibaho on Unsplashe-CNY settlementWith this new service, DBS clients in mainland China can receive the e-CNY and have it automatically settled into their CNY bank deposit accounts. DBS refers to this as a “merchant collection solution,” where the merchant collects the final amount in CNY directly into their bank deposit account. The solution aims to streamline the process by eliminating manual settlement procedures.Enabling CBDC functionalityThis innovative tool offers several advantages. It allows businesses to collect CBDC without the need for manual settlement processes. Moreover, the e-CNY’s capabilities enable users to receive payments in regions with limited internet connectivity, ensuring broader accessibility. The solution also provides reconciliation through consolidated merchant reports, with detailed e-CNY transactions available on DBS’ digital platform for business banking.The CEO of DBS Bank China, Ginger Cheng, announced that the first e-CNY transaction using the new solution has been successfully completed, involving a catering company in Shenzhen. Cheng emphasized that integrating a CBDC collection and settlement method into clients’ existing payment systems would position their businesses for a digital future where e-CNY becomes increasingly prevalent among Chinese consumers. She expressed the bank’s commitment to enhancing user experience and supporting China’s financial market innovation.Adoption pushChina has made substantial progress in promoting and expanding the digital yuan since its launch in 2019. The country’s central bank reported that there were 13.6 billion e-CNY in circulation, equivalent to approximately $2 billion, by the end of 2022.The digital yuan is currently accepted in 26 cities and 17 provinces across China, with further adoption expected as the program gradually expands to more regions. In recent days, another measure was taken to bring about everyday use of the digital yuan when the city of Jinan enabled use of the currency across its public transport system.DBS Bank has become actively involved in the digital assets space. In 2020, the bank launched cryptocurrency trading and custody services for institutional clients. In April of this year, it extended crypto trading services to its premier customers. The bank has also participated in various government-related blockchain initiatives in Singapore, including Project Orchid, Project Guardian, and Project Ubin.DBS is not the first foreign banking entity to collaborate with the Chinese relative to the digital yuan. Earlier this year, France’s BNP Paribas partnered with the Bank of China to promote the digital yuan to its corporate clients. The Chinese are clearly making every effort to promote use of the digital currency inside and outside of Chinese territory.

OpenAI CEO Sam Altman's Worldcoin project aims to bolster ties with Malaysian officials amid concerns over data privacy. Sam Altman and Alex Blania, key figures behind the Worldcoin project, recently engaged in discussions with Malaysian leaders, including the nation's Prime Minister, to enhance government relations. The move comes as Worldcoin faces scrutiny and seeks to address concerns surrounding data protection.Photo by Esmonde Yong on UnsplashAddressing privacy concernsThe "proof-of-personhood" crypto project has been under scrutiny for its data collection practices. Last month, temporary bans were imposed by Spain and Portugal, halting Worldcoin's data collection activities. The project offers WLD tokens to users in exchange for iris scans to create their personal World ID, prompting privacy advocates' concerns. Government attention and oversightWorldcoin's high-profile nature, coupled with Sam Altman's involvement, has drawn significant government attention. Countries like Germany, France, Argentina, Kenya and South Korea have initiated investigations into the project's data collection practices. Despite challenges, senior government officials continue to engage with Worldcoin amidst growing concerns about artificial intelligence threats like deepfakes. Strengthening government relationsTo address regulatory concerns, Worldcoin's parent company, Tools for Humanity, appointed Trevor Traina, former U.S. ambassador to Austria, as Head of Global Affairs. Traina emphasized the importance of meeting policymakers' expectations regarding data privacy and security. New privacy measuresIn response to regulatory pressures, Worldcoin introduced "Personal Custody," discontinuing the storage of biometric data for new signups. Additionally, users can now request the deletion of their iris codes, and stricter age verification measures have been implemented to prevent minors from signing up. These measures were developed in consultation with privacy experts and data protection authorities. Despite challenges, Worldcoin has assigned over five million World IDs, according to project data.