Research Summary
The report provides an overview of the top 10 cryptocurrency news in Asia for the week of January 1 to January 7. It covers a range of topics including regulatory changes in China and South Korea, blockchain infrastructure developments in Shanghai, tax implications for blockchain gaming companies, and the potential of blockchain technology in reshaping industries.
Key Takeaways
Regulatory Changes in China and South Korea
- China’s Taxation on Virtual Currency: The Shanghai Taxation Bureau proposed a tax on buying and selling virtual currency. The tax would be calculated based on the “income from property transfer” category. However, it remains unclear whether this ruling applies to cryptocurrencies like Bitcoin.
- South Korea’s Ban on Credit Card Crypto Purchases: The Financial Services Commission of South Korea proposed amendments to its credit finance law to prohibit citizens from using credit cards to purchase cryptocurrencies. The commission cited concerns about illegal outflows of domestic funds, money laundering, and speculative activities.
Blockchain Infrastructure Developments
- Shanghai’s Blockchain Infrastructure: The General Office of the People’s Government of Shanghai Municipality issued policy measures to accelerate the construction of urban blockchain infrastructure. The policy encourages collaboration on technical research and ecological construction to build a comprehensive blockchain technology innovation system.
Tax Implications for Blockchain Gaming Companies
- South Korea’s Tax on Wemade: The South Korean National Tax Service imposed a fine of 53.69 billion Korean won (approximately $41.05 million) on blockchain gaming company Wemade and its subsidiary, Wemade Tree, related to the virtual currency WEMIX issued and used by the companies in the past.
Potential of Blockchain Technology in Reshaping Industries
- Blockchain’s Industry Impact: The Chairman of the Hong Kong Computer Society, Sam Hui, highlighted that blockchain technology has the potential to reshape industries. Applications beyond finance, such as supply chain management and data authentication, are being explored.
Actionable Insights
- Monitor Regulatory Changes: Companies and investors in the cryptocurrency space should closely monitor regulatory changes in key markets like China and South Korea, as these changes can significantly impact the crypto market.
- Investigate Blockchain Infrastructure Opportunities: The emphasis on blockchain infrastructure development in Shanghai suggests potential opportunities for companies specializing in blockchain technology and related services.
- Understand Tax Implications: The tax fine imposed on Wemade underscores the importance for blockchain gaming companies to understand and comply with tax regulations related to virtual currencies.
- Explore Blockchain Applications: The potential of blockchain technology in reshaping industries suggests opportunities for companies to explore blockchain applications beyond finance.
