Over $4bn in unregistered crypto transactions in South Korea
South Koreans had transacted over $4.3bn in through supposed 'illegal' crypto exchanges in 2022. The country has historically had higher prices for the local market primarily due to the isolationist regulatory regime. Famously, SBF found this arbitrage and used it to his advantage when he first started out.
'In August 2022, Korean customs reported detaining 16 individuals involved in illegal foreign exchange transactions connected to crypto assets worth roughly $2 billion. Starting in 2017, Korea’s Foreign Exchange Transactions Act requires entities involved in crypto transactions to get regulatory approval from the Financial Services Commission. Hence, the attempts to participate in the global crypto trade, from foreign players coming to the Korean market or domestic investors seeking a better exchange course abroad, are labelled “illegal.“
The same month, the Korea Financial Intelligence Unit took action against 16 foreign-based crypto firms, including KuCoin, Poloniex, and Phemex. All 16 exchanges have purportedly engaged in business activities targeting domestic consumers by offering Korean-language websites, running promotional events targeting Korean consumers, and providing credit card payment options for cryptocurrency purchases.' (CoinTelegraph)
Arbitrage opportunities usually get competed or regulated away and South Korea is a prime example.
Hong Kong's Crypto Scams Double in 2022
Just a few weeks ago we were talking about the Hong Kong SFC recommending that retail investors be allowed back into the market. Well, maybe they are in with the scammers and want to boost some profits. We're joking of course.
'According to SCMP sources, police witnessed an increase in the use of cryptocurrency as a medium for online scams, with fraudsters being able to hide their identities, transaction flow, and final destination.' -CoinTelegraph.
Scams seem to be synonymous with crypto these days and eventually, we will need to find a solution to reduce scam figures to a manageable percentage. Whether that is regulations, infrastructure, or better security features for users, we don't know. This feels like the early days of email scams when it felt like there were more scams than, well, non-scams.
It's Official, DAOs are official
The Utah State Legislature passed the Utah DAO Act, which means DAOs now have legal recognition and limited liability protections.
'The Utah DAO Act was approved on March 1, 2023, after passing through the Senate and House committees. It defines ownership of DAOs and protects DAO-compliant anonymity through bylaws. Quality assurance DAO protocols are also introduced to ensure clear nuances in tax treatment and updated DAO functionalities' (CoinTelegraph).
The idea of the law is to allow DAOs to be DAOs, flexible, innovation-driven entities with decentralized and global participants working towards a common goal. However, there are a lot of kinks and edits required to make that possible and thus the implementation date is set for 2024. Expect a lot of changes and movements in this arena over the next few months. Actually, we're talking about legislature so it will probably take longer than a few months.
