TronWeekly

Crypto World News

You are here: Home / Search for "south korea"

Search Results for: south korea

South Korea To Reveal Crypto Assets Of Top Officials Next Year

by

The South Korean government recently announced new measures aimed at increasing transparency around public officials’ assets, including their holdings of cryptocurrencies. The move follows recent revisions to the country’s Public Official Ethics Act, which requires more detailed reporting around virtual assets like cryptocurrencies.

On December 27th, The Ministry of Personnel Management reported that 5,800 high-ranking public officials must register their property details, including crypto assets, on the government’s “Public Ethics and Transparency Initiative” system. This online portal allows the public to access and review the disclosures of property of public officials.

The new disclosure rules follow the passage of two bills in May that made digital assets part of the annual asset declaration required for elected and high-ranking government officials. The bills were part of a broader legislative package of 19 crypto-related bills that aimed to protect investors better and regulate the crypto industry.

The bills gave the Financial Services Commission (FSC) and the Bank of Korea the authority to oversee crypto operators and asset custodians and imposed stricter anti-money laundering and consumer protection measures. The bills also required domestic companies to disclose their virtual asset holdings from next year as part of the new accounting rules.

Crypto Exchanges To Develop Separate System

The Ministry of Personnel Management said that the five major domestic crypto exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax — plan to develop a separate information system in June next year, which could be used for property registration. The ministry said that the system will help streamline the disclosure process and prevent errors or omissions.

We expect that the transparency of the public service community will be further increased through the implementation of an integrated service for public official property disclosure and property registration of virtual assets, said Kim Seung-ho, the Director of Personnel Management.

Asset disclosure details, which were previously made individually through official gazettes or gazettes by the public service ethics committees of each institution, such as the government, the National Assembly, the Supreme Court, and the Constitutional Court, will be provided collectively in the revamped public service ethics system starting next year.

Related Reading | Telcoin Wallet Users Lose $1.2M In A Polygon Exploit; TEL Price Plummets

South Korea Mandates Crypto Interest For Investors by July 2024

by

The Financial Services Commission [FSC] in South Korea has issued a crucial directive requiring digital asset investors to receive interest on their deposits by July 2024. Notably, this legal mandate excludes nonfungible tokens [NFTs] and central bank digital currencies [CBDCs]. Recent reports from local news sources suggest that certain tokens, classified as NFTs but functioning as a payment method and issued in substantial quantities, may be considered part of the virtual asset category. If included, users could earn interest when depositing these tokens into exchanges.

The notice encompasses guidelines for managing and operating user deposits for virtual asset operators, stipulating the segregation of user deposits from the firms’ assets, which are to be entrusted to banks. A key requirement is that “virtual asset business operators must also store more than 80% of the economic value of users’ virtual assets in cold wallets.”

South Korea
South Korea Mandates Crypto Interest For Investors by July 2024 2

Crypto business operators in South Korea are also obligated to prepare for hacking and computer accidents by obtaining insurance, participating in mutual aid, or accumulating reserves. More than 5% of the economic value of virtual assets stored in a hot wallet must be insured with a compensation limit or held as a reserve. The prescribed minimum standards are 3 billion won for won market exchanges [facilitating transactions between won and coins] and 500 million won for coin market exchanges [supporting transactions between coins] or wallet/custodian services.

South Korea Regulator Issues Ban On Funds Blocking

Furthermore, the South Korean regulator clarified rules about insider trading in virtual asset businesses that mirror those in the stock market. If important information is disclosed by a virtual asset business on an exchange, it is considered public after a 6-hour period. The directive expressly prohibits blocking users’ deposits and withdrawals, except in cases of computer failure, hacking, or as required by courts, investigative agencies, and financial authorities under applicable laws and regulations.

The directive imposes an obligation to monitor abnormal transactions on virtual asset exchanges. In the event of suspected unfair trade practices, financial authorities must be promptly notified, and if adequately substantiated, the matter must be reported to an investigative agency. The directive expressly forbids virtual asset deposit and management businesses, such as Haru Invest and Delio, from suddenly suspending deposits and withdrawals, a practice that drew controversy in June of the previous year.

South Korea’s NPS Takes Crypto Leap: Scores 40% Profit with Coinbase Stock Investment

by

South Korea’s largest investment group, the National Pension Service, delved into the world of crypto assets, purchasing approximately $20 million worth of Coinbase shares in the third quarter. The acquisition marked a pivotal moment as it was the first instance of the National Pension Service including a virtual asset-related company in its U.S. stock investment portfolio.

download 2023 11 16T030710.125
South Korea's NPS Takes Crypto Leap: Scores 40% Profit with Coinbase Stock Investment 4

NPS 40% Profit Surge in Q3 Crypto Gamble

According to news1 report, the National Pension Service invested in around 26 billion won worth of Coinbase stocks listed on Nasdaq, with an average purchase price per share of $70.5. The move proved astute, as the pension fund notched a remarkable 40% profit in just one quarter, reflecting the dynamic nature of the virtual asset market.

Details emerged from the stock holdings report submitted by the National Pension Service to the U.S. Securities and Exchange Commission (SEC) on the 16th, revealing the acquisition of 282,673 shares of Coinbase stock during the third quarter. The total valuation amounted to $19,934,100, translating to 26.1 billion won.

Coinbase, recognized as the largest virtual asset exchange in the United States and listed on Nasdaq in April 2021, experienced a notable surge in stock prices following a rally in Bitcoin. As Bitcoin achieved its highest level in 18 months on the 9th, Coinbase’s stock soared 5.14% from the previous trading day to $92.86.

The National Pension Service’s strategic move contrasts with its historical reluctance to directly invest in virtual assets due to their inherent volatility. In 2021, the pension fund faced criticism from the National Assembly after it was revealed that one of its funds had invested in a crypto asset-related business. At that time, the National Pension Service clarified that its investment was limited to the exchange, emphasizing that virtual assets were not a direct investment target for the pension.

Moreover, with Bitcoin displaying strength subsequent to the National Pension Service’s acquisition of Coinbase shares, the pension fund appears to be reaping substantial profits. The current closing price of Coinbase at $98.15 compared to the National Pension Service’s average purchase price of $70.5 signifies an impressive profit margin of approximately 40% in just one quarter.

Related Reading | Solana’s Symphony: Surging Heights, Liquidity Lows, & Decentralized Dominance 

Crypto Holdings Disclosure for Election Candidates Enforced by South Korean Democratic Party

by

In a recent development, the Democratic Party of South Korea has instituted a new policy regarding crypto, mandating prospective candidates for the upcoming general elections to disclose their virtual asset holdings, including cryptocurrencies, as per The Korea Economic Daily

This directive, communicated by Han Byung-do, the chairman of the Democratic Party’s Strategic Planning Committee, originates from deliberations within the party’s general election planning team. The primary goal is to ensure candidates uphold the highest moral standards and avoid potential conflicts of interest related to cryptocurrency ownership.

Crypto Holdings Policy


Chairman Han emphasized the importance of this policy, stating, “The consensus was that the verification of candidates should be strictly strengthened based on morality.” He cautioned that candidates providing inaccurate reports on their crypto holdings may face legal repercussions, including the nullification of their candidacy.

Han highlighted,

“If you make a false report, you will be legally held responsible for it,” and “If you are found, you will face correspondingly strict measures (cancellation of candidacy, etc.).”

“However, (holding virtual assets) itself cannot be questioned. Owning it itself is not the problem.” Han added, “If you look into the process of forming the property, you can identify problems, so the verification committee will look at the contents and strictly review them.”

This initiative aligns with South Korea’s broader efforts to augment transparency and accountability in the political arena, specifically focusing on crypto-related matters. Concurrently, South Korean authorities have been actively engaged in monitoring and regulating digital assets within the country.

South Korea’s FSS Battle Against IIlegal “Burger Coins”

by

In a proactive move, South Korea’s Financial Supervisory Service [FSS] is intensifying its oversight of the crypto landscape by fortifying the existing Virtual Asset Users Protection Act, enacted earlier in 2023. FSS head Lee Bok-hyeon has announced plans to enforce updated regulations by January 2024, addressing the growing concerns of Korean citizens losing money in volatile foreign-issued cryptocurrencies, colloquially referred to as “burger coins.”

To address these challenges, the FSS head revealed in a press conference that his agency will conduct a comprehensive audit on October 17. The audit aims to establish rigorous standards for listing procedures, internal controls, and the issuance and distribution of virtual assets. Additionally, the FSS plans to implement a robust “virtual asset market supervision and inspection system” to enhance regulatory oversight.

South Korea
South Korea's FSS Battle Against IIlegal "Burger Coins" 6

Notably, the FSS is collaborating closely with the Digital Asset eXchange Association [DAXA], a consortium comprising major local crypto exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax. Lee emphasized the need for detailed regulations, indicating that the existing Virtual Asset Users Protection Act lacked specificity, especially concerning the agency’s authority and criminal liability for violations.

The FSS head stated, “If there is manipulation of distribution volume through staking or unfair disclosure, we will consult with DAXA,” highlighting the agency’s intent to ensure fair practices within the crypto market. He noted the absence of screening systems akin to those in the securities sector, necessitating collaborative efforts to fill regulatory gaps. This proactive approach coincides with South Korean regulators ramping up their vigilance on over-the-counter [OTC] crypto trading, aiming to combat illicit activities linked to digital assets.

South Korea Authorities Flag Down OTC Platforms

Recent reports underscore the heightened vigilance of the nation’s financial authorities concerning OTC crypto transactions, reflecting their commitment to maintaining the integrity and security of the crypto market. As previously reported, investigators revealed instances where OTC platforms served as channels for converting digital assets into Korean won.

A notable case involves the International Crimes Investigation Department of the Incheon District Prosecutors’ Office, which apprehended three individuals for engaging in illegal foreign exchange transactions between October 2021 and October 2022.

These arrested individuals were discovered in possession of digital currencies valued at $71 million, approximately 94 billion won, acquired from foreign OTC platforms under instructions from Libyan clients. They subsequently channeled these unlawfully acquired assets into South Korea, converting them into cash.

South Korea’s $98.3 Billion Crypto Asset Frenzy Takes Center Stage: Report

by

A recent report released by the Korean National Taxation Bureau has unveiled staggering figures regarding cryptocurrency holdings in South Korea. Korean companies’ and individuals’ declared crypto holdings have reached a staggering $98.3 billion, accounting for a significant portion of the country’s financial assets.

The report further reveals that 73 companies, including cryptocurrency exchanges, account for 92% of these holdings. However, it is essential to note that South Korean authorities have deferred taxing virtual asset gains until January 2025, despite initial plans to impose taxes earlier this year.

Including virtual assets in the list of assets subject to mandatory registration this year has significantly boosted these figures. Out of a total of 186.4 trillion won in registered external financial assets, virtual asset holdings accounted for an impressive 130.8 trillion won ($98.3 billion).

The National Tax Service (NTS) clarified that virtual assets are electronic certificates with economic value, which can be electronically traded or transferred, following the Act-On Reporting And Using Specified Financial Transaction Information.

This year’s report indicates a substantial increase in the total value of reported assets compared to 2022, nearly tripling from 64 trillion won to 186.4 trillion won, marking the highest since the enforcement of foreign financial asset registration in 2011.

Corporate Crypto Holdings Surge

The majority of the 73 corporations reporting foreign virtual assets were cryptocurrency-related companies, reporting holdings worth 120.4 trillion won. Meanwhile, 10.4 trillion won was registered by 1,359 individuals, averaging 7.66 billion won per person.

Notably, individuals aged 30 or younger held an average of around 10 billion won worth of virtual assets per person, representing 51.8% of the registered foreign virtual assets.

Virtual assets constitute the largest portion of total assets held in overseas financial accounts, followed by equities at 12.6% and deposits and savings at 12.3%.

The report also revealed that 5,419 residents and companies reported assets owned through overseas financial accounts, with individuals holding a combined 24.3 trillion won and corporations owning foreign financial assets worth 162.1 trillion won.

image 43 3

While most foreign financial assets were held in the United States, the United Kingdom led in the derivatives category, followed by Singapore, Hong Kong, and Japan for both individual and corporate holdings.

Related Reading | Bitcoin Accumulation Surge As Exchange Reserves Hit All-Time Lows 

South Korea Spearhead a City-Wide Blockchain Mainnet To Foster Digital Innovation

by

Busan, a bustling city in South Korea, is embarking on a groundbreaking initiative aimed at developing a city-level blockchain mainnet, heralding a new era of seamlessly integrated blockchain-based services that harmonize with various mainnets, including industry giants like Ethereum [ETH] and Cosmos [ATOM]. Recent revelations from a local news outlet shed light on Busan City’s strategic roadmap, articulated through the “Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule.”

Prior to this bold move, Busan City had earned recognition as a special blockchain regulation-free zone and undertaken various blockchain projects, including initiatives like B-Pass and digital vouchers. However, the utilization of distinct blockchain mainnets for each project created an inconvenient and disjointed user experience [UX].

South Korea
South Korea Spearhead a City-Wide Blockchain Mainnet To Foster Digital Innovation 9

In response to this challenge, Busan City resolved to develop a mainnet capable of achieving national blockchain standard status. This endeavor is aligned with the concept of an “open blockchain” since both Ethereum and Cosmos are public blockchains offering transparent access to transaction data.

Furthermore, Busan City is actively engaging in the establishment of a blockchain trust framework [BTF] that aims to enhance the quality of private services, promote seamless interoperability between services, and establish benchmarks for blockchain technical systems, performance, and security. These standards will be applied to public services within Busan City.

It’s worth noting that South Korea has a significant presence in the cryptocurrency space, with individuals and corporations holding substantial digital assets, accounting for a substantial portion of their overseas assets. However, the crypto landscape has not been without its challenges, including the highly publicized issues surrounding TerraUSD and Luna in May 2022, which drew considerable media attention.

South Korea’s Crypto Landscape & Regulatory Developments

Additionally, South Korean authorities have intensified their efforts to regulate the crypto sphere, including measures to track and freeze assets related to North Korea, which is notorious for its illicit weapons program. The government has also taken action against tax evaders, resulting in the confiscation of millions of dollars in cryptocurrency.

In the realm of cryptocurrency taxation, South Korea has postponed the implementation of a 20% tax on crypto gains until July 2023, originally slated for early 2023 but now delayed to 2025.

As a crypto-friendly nation, South Korea, including cities like Cheongju, has demonstrated its commitment to enforcing tax regulations related to cryptocurrency holdings, emphasizing its intention to begin confiscating cryptocurrency from local tax delinquents starting in August 2023.

South Korea Targets OTC Crypto Regulation Amid $4B Illicit Activity

by

In the realm of cryptocurrencies, South Korean regulators have turned their attention towards the opaque landscape of over-the-counter (OTC) crypto trading. Their objective is to thwart nefarious activities intertwined with digital assets. Recent reports illuminate that the nation’s financial overseers are ramping up their vigilance regarding OTC crypto dealings.

At a high-profile session titled “Criminal Legal Issues Related to Virtual Assets,” South Korean authorities, including Deputy Chief Prosecutor Ki No-Seong and Park Min-woo from the Financial Services Commission (FSC), convened to address the pressing concerns surrounding the unregulated OTC crypto market. During the meeting, No-Seong stressed the urgency of imposing regulations on this sector, citing the alarming potential for money laundering.

For those unfamiliar with the term, the OTC crypto market comprises exchanges operating without official government recognition. This encompasses all digital currency transactions that transpire outside the confines of regulated platforms, including peer-to-peer (P2P) exchanges. The report reveals that Upbit, South Korea’s largest regulated crypto platform, boasts a selection of 172 cryptocurrencies, while OTC platforms provide access to a staggering 700 digital currencies.

Unveiling OTC Crypto Conduits In South Korea

The investigative report exposes instances where OTC platforms were conduits for converting digital assets into Korean won. In one case, the International Crimes Investigation Department of the Incheon District Prosecutors’ Office apprehended and indicted three individuals on charges of conducting illegal foreign exchange transactions from October 2021 to October 2022.

Shockingly, these suspects were found to have procured a whopping $70.9 million (equivalent to 94 billion won) worth of digital currencies from overseas OTC platforms at the behest of Libyan clients. Subsequently, they funneled these ill-gotten assets into South Korea for conversion into cash. According to official estimates by the Korea Customs Service, the total value of unlawful foreign exchange transactions facilitated through digital currencies reached an alarming $4 billion (5.6 trillion won) last year.

South Korea has steadily built a reputation for its stringent cryptocurrency regulations, boasting an array of measures designed to combat crypto-related criminal activities. The recent focus on OTC crypto markets underscores the nation’s commitment to tackling this evolving threat, with regulators displaying heightened vigilance after Terra’s dramatic collapse.

Related Reading:| South Korea’s Crypto Crackdown: Pursuing Illicit North Korean Funds

BitGo & KEB Hana Bank Join Forces For A Crypto Custody Revolution In South Korea

by

As reported by local media, KEB Hana Bank, one of South Korea’s largest financial institutions, has unveiled its plans to enter the digital asset custody arena with a strategic partnership with BitGo Trust Company. The announcement, made on the 5th of September, marks a significant development in South Korea’s evolving cryptocurrency landscape.

The partnership was officially announced during the ‘Korea Blockchain Week (KBW) conference at the prestigious Shilla Hotel in Jangchung-dong. Under this strategic business agreement, KEB Hana Bank and BitGo will jointly explore the digital asset custody business, coinciding with the establishment of BitGo’s Korean corporation.

While the specifics of the partnership are still under discussion, both entities are contemplating various collaborative avenues. These include the possibility of joint equity investments in a newly formed joint venture (JV) corporation, leveraging BitGo’s cutting-edge security solutions and digital asset custody technology, and capitalizing on Hana Bank’s financial service expertise and robust security and compliance capabilities.

Founded in 2013, BitGo has e­merged as a prominent global provide­r of digital asset custody services. The­ company’s offerings encompass wallet solutions, custody se­rvices, staking options, and trading facilities. Noteworthy is its accre­ditation from regulatory bodies in the Unite­d States, Switzerland, and Germany. Se­rving an extensive clie­ntele comprising over 1,500 organizations across more­ than 50 countries.

An official from Hana Bank emphasized the partnership’s potential to enhance trust and consumer protection within South Korea’s burgeoning digital asset market. Meanwhile, BitGo’s CEO and co-founder, Mike Belsey, expressed the company’s commitment to elevating transparency and safety standards within the Korean digital asset industry through this collaboration.

BitGo’s Expansion Plans In South Korea

Additionally, BitGo is gearing up to establish an office in South Korea in the latter half of 2024, subject to securing the necessary licenses in compliance with local regulations. The company recently wrapped up a successful US$100 million Series C funding round, propelling its valuation to an impressive US$1.75 billion.

These­ recent advanceme­nts in South Korea’s regulatory landscape coincide­ with the Financial Services Commission’s planne­d amendments to ele­ctronic securities laws. These­ changes aim to include blockchain-powere­d security tokens within the country’s re­gulatory framework, further solidifying its standing in the global digital asse­t arena.

Related Reading | Bitfinex’s Bitcoin Approach Is More Than Just Holding

South Korea’s Crypto Crackdown: Pursuing Illicit North Korean Funds

by

South Korea’s government is intensifying its efforts with legislation designed to trace and freeze North Korean cryptocurrency and virtual assets funneled into Pyongyang’s illicit weapons program. The story, initially reported by a local media outlet, cites confidential government sources who reveal that this move aims to overhaul the nation’s cybersecurity framework.

Anonymous insiders also divulge that the administration plans to amend the original bill proposed by the National Intelligence Service [NIS] in November 2022. The revisions will include new provisions to actively “trace and neutralize” cryptocurrency and other virtual assets acquired by North Korea through hacking and other unlawful means.

In addition to this cybersecurity legislation, there are reports that the South Korean government is contemplating the creation of a national cybersecurity committee directly under the president’s purview. This committee would implement a range of measures to fortify the country’s defenses against cyberattacks originating from foreign entities. The leadership of this committee, as per the report, would be entrusted to the chief of the National Security Office and would include the director of the NIS.

A recent report from South Korea’s National Intelligence Service underscores the ongoing threat posed by cyberattacks in the cryptocurrency space. Over a period of six months, North Korean hackers managed to accumulate an illicit fortune of approximately $180 million, highlighting the gravity of the situation.

The illicit activities of North Korea’s cyber community, notably the infamous Lazarus Group, have become a worldwide concern. This group has been responsible for numerous high-profile cryptocurrency breaches, including the massive $600 million hack of Ronin, the blockchain supporting the popular play-to-earn game Axie Infinity, which occurred last year.

South Korea Launched An Interagency Investigation

In June, South Korea established an interagency investigation unit to combat crypto-related crimes in response to a surge in illegal activities in the market and the absence of legal protections for investors. The nation’s cryptocurrency market, once one of the world’s fastest-growing, experienced a 66% decline in market capitalization last year due to a series of global and domestic events that dampened investor sentiment.

Domestic factors included a crash of the so-called stablecoin TerraUSD and its counterpart Luna in May 2022, leading to public outrage over alleged fraud by Do Kown, the developer of the currencies. Kown, a global fugitive, was apprehended in Montenegro and faces fraud charges in the United States.

Reuters further revealed that suspected crime-related transactions across local cryptocurrency exchanges surged by a staggering 1,263%, increasing from 66 in 2021 to 900 in 2022.