Wemade CEO Encourages Japanese Game Developers to Embrace Blockchain

Recent reports from local media outlets indicate that Indonesian authorities have conducted raids on crypto mining sites, accusing them of illicitly siphoning electricity from the utility poles of the state-owned electricity company. The government’s intervention comes as part of a broader effort to address energy theft and regulate the cryptocurrency mining industry in the country.Photo by Fré Sonneveld on UnsplashTen mining sites raidedOfficials from the state-owned electricity company PLN highlighted the importance of coordinated efforts in exposing the unauthorized mining operations that were tapping into the national grid without approval. According to the reports, the ten illegal bitcoin mining sites which were raided incurred a financial loss of approximately 1.4 billion Indonesian rupees, equivalent to $100,000 for the state. The impact of energy theft extended beyond financial concerns, raising environmental and community-related concerns. Local students, alarmed by the potential consequences, urged PLN and regional police to investigate the mining operations. Subsequent action revealed that the theft was indeed taking place, prompting PLN officers from the Bukit Barisan Customer Service Implementation Unit (UP3) to conduct a raid. However, the officers faced threats and resistance, leading to a close coordination between PLN and the North Sumatra Regional Police. The raid uncovered a total of 1,300 bitcoin mining machines engaged in illegal operations, with each machine consuming a substantial 1,800 watts of electricity. Inspector General Agung Effendi, the North Sumatra Police Chief, disclosed that the illicit activities had been ongoing for an estimated six months, resulting in the arrest of 26 individuals across the ten locations.PLN reassured stakeholders of continued collaboration with the police to prevent further electricity theft and safeguard the national grid from such unauthorized activities. Worldwide concernThe incident in Indonesia reflects a global concern over the energy consumption of cryptocurrency mining operations generally, but also with regard to illegal activity. In recent years, the environmental impact of these operations has become a focal point in public policy debates, with climate activists emphasizing the harm caused. Government officials, on the other hand, express concerns about the potential disruption to the total distribution network if not properly regulated. In September, neighboring Malaysia identified illegal crypto mining activities in the state of Sarawak as the reason for recurrent power disruption. Meanwhile, in Singapore in August, authorities uncovered a crypto mining scam that cheated investors out of $1.3 million dollars. Indonesia joins other countries that have conducted raids on crypto mining operations accused of running large-scale, unregistered facilities. Malaysia has witnessed multiple arrests related to digital asset mines, while in Venezuela, authorities seized bitcoin machines and weapons from a recaptured prison controlled by a criminal gang. Legitimate mining potentialNotably, this marks the first such incident in Indonesia, and energy theft charges in the country are punishable by up to five years in prison or 200% of the stolen energy’s value. Despite these problems, Indonesia also understands the opportunity that exists where legal bitcoin mining is carried out. In May, Ridwan Kamil, Governor of the province of West Java, participated in a fireside chat titled “The Indonesia Bitcoin Mining Campaign.” During that event, Governor Kamil recognized the potential that bitcoin mining offers Indonesia. He stated: “[Indonesia has] the second most geothermal potential in the world — more than 800 rivers with hydropower. As bitcoin allows the transformation of energy into money, bitcoin could be transformative for Indonesia.” The global trend of addressing energy consumption in crypto mining is evident in Kazakhstan, where regulators seek to limit miners’ access to the national grid unless they operate solar-powered mines. Indonesia, with its pro-crypto population, is also moving towards increased regulation, mandating all crypto exchanges to register with the Commodity Futures Exchange (CFX) to continue operations beyond August 2024.  

The Japanese government is moving to modernize municipal finance through blockchain technology, though the timeline for much-anticipated cryptocurrency tax reforms appears to be drifting further into the future. Municipal bonds as security tokensAccording to a Dec. 23 Nikkei report cited by CoinDesk Japan, policymakers decided to begin preparing to issue local government bonds as security tokens. The government aims to submit the necessary legislation during the ordinary Diet session in 2026. Concrete measures, shaped by requests from local municipalities, are expected to be finalized ahead of next year. Advocates say that issuing bonds as blockchain-based security tokens would modernize local government finance by reducing friction in issuance and settlement and enabling real-time tracking of investor data.Photo by Luke Stackpoole on UnsplashCrypto tax reform seen as taking timeWhile the digitization of bonds progresses, the schedule for easing the tax burden on crypto investors is reportedly facing setbacks. CoinPost reported that, according to sources, the transition to a separate tax on crypto gains is now expected to take place in January 2028, a delay from the initially envisioned target of January 2027. The legislative groundwork is still slated for the 2026 Diet session, where amendments bringing crypto assets under the Financial Instruments and Exchange Act (FIEA) will be deliberated. However, the current cautious policy approach prioritizes investor protection and adjustments to the tax reporting framework, making a delay in implementation more likely. The proposed amendments address the steep tax liabilities currently faced by domestic investors. Under Japan’s current system, crypto gains are treated as miscellaneous income, taxed comprehensively with salary and other earnings at rates that can reach roughly 55% when including local taxes. The plan, which the ruling coalition has been coordinating, aims to align crypto taxation with that of stocks and forex trading. It would introduce a flat 20% separate tax rate and allow loss offsets and carryforwards of up to three years, bringing crypto closer to other financial assets. It would also ease tax filing by potentially adopting a framework similar to the designated accounts used in Japan’s securities market, reducing the reporting burden on digital asset investors. The slow pace of these regulatory changes has drawn criticism from the private sector. Tomoya Asakura, CEO of SBI Global Asset Management, a subsidiary of SBI Holdings, took to the social media platform X to voice concerns about the pace of reform. Asakura characterized the process as "extremely slow," warning that the lag places Japan behind jurisdictions such as the U.S., Asia, and the Middle East. He argued that continued delays would further impede domestic initiatives in Web3 and digital finance. Bybit to pull out next yearAmid this shifting regulatory landscape, foreign entities are adjusting their operations. Dubai-based crypto exchange Bybit, which is not registered with Japan’s Financial Services Agency, announced on Dec. 22 it will phase out services for Japanese users to remain compliant with local rules. The exchange has stopped onboarding Japanese residents or nationals since 12:00 p.m. UTC on Oct. 31, and accounts held by customers in Japan will be gradually restricted starting next year. 

South Korea’s cryptocurrency market is moving through a period of stricter oversight and policy debate, while major industry players pursue overseas listings against a backdrop of falling market valuations and weaker investor sentiment.Photo by Ori Song on UnsplashAccording to Newsis, financial regulators are close to finalizing penalties for the country’s major crypto exchanges after a wide-ranging review of their compliance systems. The Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) is preparing to issue sanctions such as institutional warnings, fines, and personnel measures against platforms found to have breached anti-money laundering (AML) rules. These actions follow a series of on-site inspections that began in August 2024 with Dunamu, the operator of Upbit, and were later extended to Bithumb, Coinone, Korbit, and Gopax. Authorities plan to determine and announce penalties in the order of these inspections, which concluded in April 2025. Stablecoin debate growsAt the same time, a policy debate is unfolding in the parliament over how far South Korea should go in supporting digital asset innovation. The Maeil Business Newspaper reported that Democratic Party lawmaker Min Byoung-dug has questioned the Bank of Korea’s cautious stance on launching a won-backed stablecoin. The central bank has identified seven main risks associated with such an asset, including possible de-pegging and threats to monetary policy stability. Min argues that the bank is placing too much weight on these micro-level risks. In a recent report, he contended that delaying innovation could lead to larger, structural economic losses and said the risks identified by the central bank can be managed through oversight and product design rather than by avoiding stablecoins altogether. Dunamu–Naver deal targets NasdaqIn the corporate sector, major fintech firms are pushing ahead with international expansion plans. Naver Financial and Dunamu, which operates the Upbit exchange, have endorsed a merger plan involving a comprehensive share swap, according to The Herald Business. The share swap ratio has been set at 2.54 to 1. This development follows earlier reports that the two firms were close to an agreement intended to support a future Nasdaq listing in the United States. Bitcoin slide persistsThese regulatory, legislative, and corporate developments are taking place as market conditions deteriorate. Global data show weakening demand, with spot Bitcoin exchange-traded funds (ETFs) recording about $3.5 billion in net outflows in November, according to Bloomberg, while CoinMarketCap data show Bitcoin prices down roughly 24% over the past month.  Domestic sentiment reflects this caution. In a weekly survey conducted by CoinNess and Cratos, 59.5% of South Korean investors said over the weekend that they expect Bitcoin prices to fall or crash this week, up from 43.6% a week earlier. Only 12.4% of respondents forecast a price increase. Views on the broader market cycle are also shifting. In the same survey, 42.9% of participants said they believe the bull market has already ended. Reflecting this sentiment, Alternative.me’s Crypto Fear & Greed Index is at 15, in the “Extreme Fear” zone as of Nov. 26.