IOTA accelerates Middle East expansion with $100M foundation launch

The Inland Revenue Board (IRB) of Malaysia has launched an operation, which has been dubbed as “Ops Token,” to tackle tax evasion within crypto trading circles in the southeast Asian nation. Klang Valley raids According to the Malaysian English language newspaper, The Star, the special operation is a coordinated effort involving the Royal Malaysia Police and CyberSecurity Malaysia (CSM) alongside the IRB. The Malaysian tax authority raided ten locations, with 38 personnel involved in the raids, which were carried out within the Klang Valley region. The main objective of the raids and the operation overall, is to identify crypto corporate entities and individuals that had failed to report trading activities and therefore, associated revenues, profits and taxes. The initiative aligns with the Malaysian government’s broader strategy of stamping out tax evasion across all sectors, reducing revenue leakage and optimizing the nation’s tax take.Photo by Esmonde Yong on UnsplashStern warning for traders Datuk Abu Tariq Jamaluddin, CEO of the IRB, issued a stern warning to crypto traders: declare and pay taxes or face compliance actions. Jamaluddin clarified that crypto traders are subject to the same income tax rules that are applied to businesses across various sectors throughout Malaysia. While cryptocurrency is not regarded as legal tender by Malaysia’s central bank, crypto-centric businesses must adhere to the nation's income tax regulations. The IRB commented on the operation via a statement published on June 15. It stated: "Through this operation, it was possible to find stored cryptocurrency trading data in mobile devices and computers. We have successfully identified the digital assets that are traded, which has caused significant tax revenue leakage." The agency intends to carry out further analysis on the data that it seized in a bid to ascertain the trading revenues generated, the profits derived from that trading activity and the taxes owed as a consequence. The IRB has asserted that a number of corporate entities and partnerships were specifically formed with the purpose of tax evasion. The agency estimates the total value of crypto-related transactions to date in 2024 to amount to 1.441 trillion Malaysian ringgits, approximately $310 billion. International enforcement efforts Malaysia is not alone in its efforts to ensure tax compliance relative to cryptocurrency trading and investing. The Organization for Economic Cooperation and Development (OECD) has established a set of crypto tax rules, namely the Crypto-Asset Reporting Framework (CARF). The initiative is part of an effort to achieve a Common Reporting Standard (CRS) relative to crypto on an international basis, with OECD member states transposing the CARF into domestic law. The CARF is due to go live in 2027. The International Monetary Fund (IMF) maintains that crypto presents itself as a major headache for tax authorities globally. In a research paper published last year, it outlined that countries would need to update their tax systems in order to deal with the challenge that crypto presents with the potential for a leakage in tax revenues. In the United States, an Internal Revenue Service (IRS) official stated in December 2023 that the agency has seen an increase in its caseload relative to crypto tax cases.

Korea Fintech Industry Association Establishes Council for Security TokensThe Korea Fintech Industry Association (KORFIN) has recently held a successful kickoff meeting to launch the Fintech Council for Security Tokens. Comprised of 18 members specializing in security token-related fields, including blockchain technology and fractional investments, the council aims to expand its membership by inviting more enterprises interested in security token projects.Current participants in the council include The Seed Partners, a venture capital firm; Lucentblock, a blockchain-based real estate securities platform provider; and Leadpoint System, a blockchain tech developer.Photo by Ethan Brooke on UnsplashActivities for ecosystem growthThe purpose of the council is to foster the growth of the security token ecosystem by undertaking various activities. These activities encompass engaging in discussions to strengthen the security token industry, conducting research on policy development, and seeking expert consultations.Promoting innovationLee Keun-ju, the President of KORFIN, expressed the association’s commitment to supporting fintech companies in realizing their innovative ideas in the industry. In line with this commitment, KORFIN will organize a range of events, including educational courses and seminars, to facilitate knowledge sharing and enable fintech companies to establish valuable business network connections.Growing enthusiasmSince the Korean Financial Services Commission (FSC) authorized the issuance and trading of security tokens in February, the interest in security tokens has gained momentum within the country. This growing enthusiasm aligns with the global trend, as highlighted in a 2022 report by Boston Consulting Group (BCG) and Singaporean investment platform ADDX, which projected that the global market for illiquid tokenized assets would hit $16 trillion by 2030.

Korean Blockchain Fund Supports Web3 Game Developer Growth in Southeast AsiaHashed, a Seoul-based blockchain venture fund, has spearheaded a seven-figure investment round for Decentralised Gaming Ventures (DGV), a Web3 game development support entity primarily serving Southeast Asia (SEA), according to a press release. This funding will help DGV in its mission to foster the growth of promising game developers in the region.Photo by Timo Volz on PexelsSEA as a Web3 Game HubDGV has set its sights on making SEA a hub to nurture game developers and bolster the Web3 game sector. The company has already established a studio in Singapore, where 32 talented game developers work in eight different teams, providing them with the necessary resources to design and introduce new gaming titles. Over the past year, DGV has supported the release of 15 games.Studio in SingaporeDGV further plans to help game developers in the region through alliances with renowned entertainment intellectual property (IP) owners. In the past, the company has teamed up with Singapore-based designer toys and art collectibles studio Mighty Jaxx, and recently appointed gaming veteran Derrick Sim as its Chief Operating Officer. Sim has expertise in collaborating with major entertainment IPs, including Marvel, StarCraft II, and FIFA Online 2.DGV CEO Samson Oh articulated the firm’s aspiration to forge an environment that empowers developers in SEA to create blockchain-powered Web3 games, anticipated to be the gaming industry’s future. With the support from Hashed, DGV looks to reinforce the region’s reputation as a fertile ground for innovative game developers.Hashed’s Co-Founder Ryan Kim commended DGV’s effective leadership, SEA governmental backing, and firm groundwork for expansion in the Web3 gaming industry. The investment in the firm signals the Korean fund’s belief in DGV’s seasoned team and its mission to leverage IP accessibility to advance its digital ownership initiative in the gaming realm.