Korean Police Establishes Task Force to Tackle Virtual Asset-Related Crimes

Putin approves inclusion of digital ruble within Russian tax codeRussian President Vladimir Putin has given his approval to a new law that incorporates the digital ruble into Russia’s tax code, marking a significant step in the country’s push towards digital currency adoption.Photo by Egor Filin on UnsplashAuthority to recover fundsThe development was reported by Russian news outlet Telesputnik on Tuesday. The legislation introduces terms such as “digital ruble” and “digital ruble wallet” into the tax code. It outlines the legal framework for these digital assets. Notably, the law grants bailiffs and court-appointed individuals the authority to recover central bank digital currency (CBDC) funds from wallets in cases where taxpayers lack sufficient fiat in their bank accounts.Moreover, the law empowers tax authorities to suspend transactions on digital ruble wallets and request documentation from platform operators to confirm fund withdrawals from a taxpayer’s account. In a move aimed at streamlining the process, confiscated digital coins can be transferred directly to the Russian Treasury.This legislation, the second major CBDC-related law passed in 2023, signals Russia’s interest in fast-tracking the implementation of its digital ruble. Despite conflicting statements, the Ministry of Finance anticipates that all Russians will have the opportunity to use digital ruble wallets for payments by 2024. However, the Central Bank has indicated a potentially delayed national roll-out, stating it may not occur before 2025.Key provisions outlined in the new law include defining the Central Bank’s role as the “operator of the digital ruble platform” and establishing liability procedures if the bank fails to fulfill these obligations. Additionally, the law addresses the taxation of transactions involving digital rubles, with exemptions for Value Added Tax (VAT) on account opening and holding.Working around sanctionsAs Russia edges closer to the digital ruble roll-out, the nation faces economic challenges due to ongoing U.S. and EU sanctions. Moscow views the CBDC as a strategic tool in international trade, aiming to leverage it to navigate economic restrictions. Government officials believe the digital ruble will play a crucial role in reducing costs and risks for domestic firms engaged in foreign trade.The Eurasian Economic Union (EAEU), a five-member economic bloc including Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, is exploring the potential for cross-border CBDC functions. Belarus and Kazakhstan are also expediting their CBDC projects, with a focus on cross-border trading capabilities.Earlier this month, a Russian politician could begin to use their respective CBDCs for bilateral trade deals as early as next year. Even before sanctions hit, both Russia and China had been working towards de-dollarization for some time.Ongoing pilot programThe Central Bank is actively piloting the digital ruble in 11 Russian cities alongside 13 partner commercial banks. Earlier this month, the bank stated that “the pilot will continue at least until the end of 2024 and, if necessary, will be extended.” The Central Bank added that “only after the completion of the pilot will the digital ruble be introduced into mass circulation.”A group of 16 banks is set to join the trial in the coming year. The finance ministry aims to utilize the digital ruble for government subsidies and welfare payments, with plans for implementation in 2024.

Coincheck, a subsidiary of Monex Group, a Tokyo-based global financial services firm, has gained U.S. Securities and Exchange Commission (SEC) approval to become the first Japanese crypto exchange to list on the Nasdaq, an American stock exchange.Photo by Denys Nevozhai on UnsplashSPAC mergerThe approval by the U.S. regulator was filed on Nov. 13. The listing has been enabled due to the company’s decision to enter into a merger with a special purpose acquisition company (SPAC), namely Thunder Bridge Capital Partners (TBCP).  A SPAC raises money through an initial public offering (IPO) to either acquire or merge with an existing company. Opting for a SPAC means that Coincheck can forego a lot of the time and expense that would be necessary if it attempted to effect an IPO on its own. Parent company Monex Group published a statement outlining that Coincheck CEO Yuko Seimei had “been diligently preparing for listing its common stock on the Nasdaq Global Market (“Nasdaq”) through a previously announced business combination with Thunder Bridge Capital Partners.” Possible Nasdaq listing on Dec. 10 In a press release issued by TBCP, the company claimed that the proposed merger is anticipated to close on or about Dec. 10, 2024. That eventuality is subject to stockholder approval, Nasdaq approval and specific closing conditions. Consequently, Coincheck’s Nasdaq listing could potentially happen as early as Dec. 10. TBCP is holding a shareholder vote on the merger on Dec. 5. If all conditions are satisfied to pave the way for listing, the company’s stock will be listed using CNCK as the Nasdaq stock ticker. Once the merger and Nasdaq listing have been accomplished, Coincheck will still remain a subsidiary of Monex Group. The merged business will gain access to $237 million, held in trust by TBCP, with Monex retaining an 82% stake in the company. Furthermore, Thunder Bridge CEO Gary Simanson will lead the new company. The $1.25 billion merger had been in the works since 2022, having faced multiple delays on the path towards merger completion and Nasdaq listing. Coincheck finally filed with the SEC to merge back in May. Parent company Monex has other interests in the digital asset sector beyond its involvement with Coincheck. Last December the company acquired a majority stake in 3iQ Digital Holdings, a Canadian crypto asset management company.Monex has just launched a new brand, Monex Web3, comprising of Monex’s Web3 business portfolio. It also offers a Web3 consulting business, using its local know-how to guide Web3 startups in entering the Japanese market. Coincheck has also engaged in partnerships to assist other firms in gaining access to the Japanese market. Earlier this year the leading Japanese crypto exchange partnered with USD Coin (USDC) stablecoin issuer Circle, in an effort to expand USDC access within the local market. In January 2018 the exchange suffered what was at the time the world’s largest ever digital asset theft, losing $534 million in virtual assets in a hack of the platform.

3AC Founders Vow to Donate Future EarningsThe co-founders of the Singapore-headquartered bankrupt crypto hedge fund Three Arrows Capital (3AC) have publicly committed to donating their “future earnings” to creditors who suffered losses during the fund’s dramatic collapse.Kyle Davies and Su Zhu made this groundbreaking announcement during a candid Twitter Spaces session hosted by Mario Nafwal, aiming to establish a “shadow recovery process” parallel to the ongoing liquidation proceedings.Photo by Josh Appel on UnsplashBelieving in karmaDavies explained that their intended donations would be separate from the formal recovery process, designed to supplement any reimbursements that creditors might receive through the liquidation proceedings. While acknowledging that some early creditors have already been made whole, he emphasized the founders’ unwavering belief in the concept of “karma.”They see their act of giving back as a way to balance the scales and provide an avenue for creditors to potentially recover their losses.Creditor skepticismHowever, these noble intentions expressed by Davies and Zhu have been met with skepticism from the crypto community and the very creditors they seek to assist. Teneo, the liquidator overseeing the 3AC liquidation, responded to Davies’ comments by expressing disappointment in the founders’ lack of cooperation during the ongoing process. They stressed that the founders should prioritize engaging in the court-ordered activities rather than making promises about future earnings from a new venture.Acknowledging concerns about optics, Davies addressed questions surrounding the launch of their new crypto exchange, Open Exchange (OPNX), while their previous company undergoes liquidation. He stressed the inherent connection between OPNX and the creditors, suggesting that the success of their new entrepreneurial endeavor would ultimately benefit those affected by the collapse of Three Arrows Capital.OPNX success requiredOPNX, the newly launched Dubai-based trading platform, is specifically designed to facilitate the trading of bankruptcy claims. Since its announcement in February, the platform has garnered significant attention, boasting an impressive user base of 20 million individuals holding a collective $20 billion in claims. It is worth noting that the collapse of Three Arrows Capital resulted in the loss of $2.5 billion in customer deposits, making the success of OPNX crucial for creditors seeking redress.Davies also revealed that OPNX currently records approximately $50 million in daily trading volume, showcasing promising early traction for the platform. However, the exact mechanics of the “shadow recovery process” were left unspecified.While OPNX currently only facilitates the trading of claims from lender Celsius, the platform has ambitious plans to include claims from other high-profile bankruptcies in the near future. The list of potential additions encompasses notable entities such as FTX, Genesis, BlockFi, Voyager, Hodlnaut, Mt. Gox, Vauld, Zipmex, and even Three Arrows Capital itself.When taken at face value, the founders’ pledge to donate future earnings to creditors takes on the appearance of a significant and commendable gesture. However, doubts persist within the crypto community due to the founders’ prior actions and the ongoing liquidation process. Only time will reveal the true impact of this “shadow recovery process” and whether it will genuinely alleviate the losses suffered by creditors in the wake of Three Arrows Capital’s collapse.