Under a new legislation, Japanese cryptocurrency exchanges will be required to provide personal information on clients suspected of tax fraud.

In an effort to prevent tax evasion on income from digital assets, Japan is looking to enact measures that would force cryptocurrency traders to ‘tell on’ their clients. According to The Mainichi, the government of Japan is seeking to empower the National Tax Agency (NTA) to demand crypto exchanges to provide information on traders and investors who have been suspected of evasion.

Tax Evasion on the Rise

Japan remains one of the leaders in the global cryptosphere, with the Japanese yen accounting for around 60% of Bitcoin (BTC). Last year, more than 300 individuals declared minimum earnings of 100 million yen from crypto investments and tradings.

However, the NTA believes that number to be too low, and an indication of widespread tax evasion in the sector. According to government sources, a significant number of individuals failed to disclose their profits from cryptocurrency transfers and activities after the historic bull run at the end of last year.

Under the current law cryptocurrency exchanges can voluntarily provide information regarding their clients to the NTA. Such information includes names, activity log, individual identification numbers, and wallet addresses. However, under the new legislation NTA will be able to demand this information in cases related to suspected tax evasion. The NTA would also be allowed to demand details on bank accounts opened under false names.

The tax authority will be able to request such information only if there is sufficient evidence the particular individual failed to disclose at least 50% of their income and has earned at least ten million yen from crypto-related activities. In addition, businesses and platforms will be able to appeal such requests.

The measures are part of a new crypto tax reform set to be published in the upcoming fiscal year, between April 1, 2019 and March 31, 2020, and implemented sometime later in 2020. According to Japanese law, individuals that make at least 200,000 yen per year must declare their income regardless of its origin. Cryptocurrency trading and investing are categorized under the miscellaneous income category.

Back in April, the Japanese market watchdog called for stricter regulations on cryptocurrencies and digital assets trading and investment.

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Thai cryptocurrency exchange Satang Corp. plans to raise nearly $10 million in a security token offering (STO), despite the recent market meltdown, Asia-focused business publication Nikkei Asian Review reported Dec. 4.

Satang’s plans are reportedly supported by the Government of Thailand in a bid to make the country a blockchain center and develop a regulatory framework for digital currencies and blockchain. According to the exchange’s CEO Poramin Insom, the STO will be conducted in the first quarter of 2019.

Satang reportedly plans to use the $9.9 million it raises to develop an e-wallet that enables users to make payments, as well as establish Satang Shops in tourist centers like Phuket and Pattaya.

STOs in Thailand currency operate in a regulatory grey-zone, as the new financial product straddles two different regulatory classifications. Just last week, the deputy secretary of the Thai Securities and Exchanges Commission Tipsuda Thavaramara declared that Thai-related STOs launched in an international market break the law. Thavaramara reportedly “said the regulator will have to consider how to deal with STOs for issues such as share ownership, voting rights and dividend.”

In November, Insom reportedly helped deploy blockchain technology during a primary election in the country’s Democrat Party. Elections for a party leader were conducted on a blockchain-based mobile app, according to tech news outlet Built In reported Nov. 16. Data gathered from the app was stored in hashed files, that were subsequently stored on the Zcoin blockchain developed by Insom.

“I hope that other political parties or even the government not just in Thailand but in the region can look to using blockchain technology in enabling large scale e-voting or polling,” Poramin reportedly said.

Thailand’s Revenue Department is reportedly testing blockchain technology for tracking value-added tax (VAT) payments. According to Ekniti Nitithanprapas, director general of the Thai Revenue Department, the department “wants to use blockchain technology to prevent VAT refund fraud.” It also reportedly “set its sights on adopting machine learning and using artificial intelligence to learn and study tax-cheating practices” to ultimately “compel more people to enter the formal tax system.”

This post is credited to cointelegraph

A bug centering around the Ethereum-based GasToken that paved the way for abuse on cryptocurrency exchanges has been fixed.


How Did It Work?

The bug made it possible for hackers to force exchanges into paying very high fees, though at press time, it’s unclear which exchanges lacked the specific security means to prevent the problem from expanding. Additionally, the hackers could potentially exploit the bug to garner profits.

The issue was discovered by a group of cryptocurrency researchers, who later issued private messages to “as many digital exchanges as possible.” The platforms later implemented the appropriate security measures to disrupt the bug and end the threat once and for all.

You Need to Get Strict

Many exchanges, the researchers discovered, were not implementing appropriate limits on GasToken utilization or on how many tokens could be sent to random addresses. Thus, upon the completion of a transaction, the hackers could potentially force the exchanges into paying very high amounts for ongoing computation and then drain the exchanges’ reserves. They could also mint new GasTokens if they wanted (minting is the process of creating entirely new coins for a profit).

Hackers could also enforce high fees on users engaging in business with random accounts. On a positive note, not all exchanges were made vulnerable to the bug, as it was initially reported that only exchanges taking part in Ethereum-based transactions could be victimized.

Very Few Could Be Affected

This was later narrowed down to exchanges that initiated such transactions, not those that processed them, which made for a limited number of platforms that could be affected. Decentralized exchanges (DEXs) and those that utilized smart contracts to process users’ money transfers, for example, could not be attacked.

The bug was first discovered in late October. The researchers then went on to inform those who could be affected, advising that they implement “reasonable gas limits on all transactions” to defend against the possibility of a threat. At the time of writing, the exchanges have implemented the necessary defenses and the problem is now null and void.

This Looks Familiar

This isn’t the first time Ethereum has opened the door to malicious activity. Early this year, research staffers discovered a vulnerability in Coinbase that allowed users to reward themselves with virtually unlimited amounts of ether tokens. In addition, a flaw in Monero’s wallet system allowed users to potentially steal XMR from digital exchanges.

To learn more about the recent bug, click here.

Will we continue to see issues like these in the future? Why or why not? Post your comments below.

This post is credited to livebitcoinnews

European cryptocurrency exchange Bitstamp will integrate a new platform to improve compliance and customer protection, according to a press release published Nov. 27.

Bitstamp has formed a partnership with British market surveillance firm Irisium Ltd. in an effort to improve the safety and reliability of its marketplace. The exchange will deploy Irisium’s platform to monitor market activity and attract more institutional investors.

Commenting on the collaboration, Alastair Goodwin, CEO of Irisium Ltd, said that the adoption of Irisium’s platform will help “increase transparency, integrity and confidence in the cryptocurrency market,” eventually improving market liquidity and adoption.

Founded in 2011, Bitstamp is purportedly the largest crypto exchange by trading volume in the E.U., supporting trading for Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), U.S. dollars and euro.

Recently the exchange was acquired by Belgium-based investment firm NXMH, which is in turn a subsidiary of investment bank Barclays. The firm is a also a subsidiary of Korea-based media giant NXC Corp., which bought a 65.19 percent stake in South Korean crypto exchange Korbit last year.

In August, Bitstamp along with crypto exchanges Gemini, Bittrex, and bitFlyer USA established a self-regulatory organization dubbed the Virtual Commodity Association Working Group for digital commodities, such as cryptocurrencies. The organization aims to help large-scale investors get more comfortable with the crypto market and work on formulating industry standards.

In May, the Chicago Mercantile Exchange (CME Group) in partnership with U.K.-based Crypto Facilities launched the CME CF Ether-Dollar Reference Rate and Real Time Index to provide users access to a real-time ETH price in U.S. dollars. Both rates are set to be calculated by Crypto Facilities, and based on transactions and order book activity from crypto exchanges Bitstamp and Kraken.

This post is credit to cointelegraph

A growing number of companies are entering the cryptocurrency space in Thailand. However, they have not applied for approval from the Thai Securities and Exchange Commission (SEC), prompting the regulator to issue several warnings against unapproved operators.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Companies Entering Thai Crypto Space

More Cryptocurrency Exchanges Opening in Thailand, SEC Warns Approvals NeededSince Thailand enacted its cryptocurrency regulations in May, a growing number of companies have been launching crypto exchanges and issuing tokens in the country.

Q Exchange, a joint venture between Thai and South Korean companies, has been promoting its services in Thailand with a plan to open the first “cryptocurrency bank” in the country, Channel 3 News reported. The company aims for its Thai operation to be the crypto exchange hub of Asean countries, the media outlet detailed, and quoted the company’s general manager explaining:

The goal is to open exchange branches nationwide of more than 30 branches in 2018 and increase to 70 branches in 2019.

More Cryptocurrency Exchanges Opening in Thailand, SEC Warns Approvals NeededSouth Korea-based cryptocurrency exchange Coin25 announced on Tuesday that it has set up a subsidiary in Bangkok and “is operating more than 60 branches in Thailand and Laos,” Business Korea reported. However, this exchange only offers the trading of its own token.

Mrc Biz Ltd. has also been promoting an initial coin offering (ICO) in Thailand, the Thai SEC revealed on Friday. Another company, Corexfly, announced that it was launching an exchange in Thailand back in August. “Corexfly has concluded an agreement with Korean exchange B&C to establish Dabit exchange in Thailand,” the company’s website states.

Furthermore, South Korea’s two largest cryptocurrency exchanges, Upbit and Bithumb, have also unveiled their plans to open exchanges in Thailand.

SEC Issues More Warnings

More Cryptocurrency Exchanges Opening in Thailand, SEC Warns Approvals NeededAccording to Thailand’s cryptocurrency regulations, companies wanting to conduct crypto business in the country must gain approval from the SEC, the main regulator of the country’s crypto industry. So far, only six crypto exchanges and one dealer have been temporarily approved while their applications are being reviewed.

The six exchanges are Bitcoin Co. Ltd. (Bx), Bitkub Online Co. Ltd., Cash2coins, Satang Corporation (Tdax), Coin Asset Co. Ltd., and Southeast Asia Digital Exchange Co. Ltd. (Seadex). Currently, Coins Th. is the only company that has been temporarily approved to operate as a cryptocurrency dealer. No approvals have been granted to new exchanges or token issuers.

The SEC has issued several warnings against unauthorized crypto businesses and tokens. Recently, it warned investors about Db Holdings Plc. and nine unauthorized tokens.

More Cryptocurrency Exchanges Opening in Thailand, SEC Warns Approvals Needed
Rapee Sucharitakul.

Q Exchange Ltd. also received a warning, the Thai SEC announced on Tuesday. The commission explained that while the company has not been granted approval, it has been advertising and soliciting customers to buy and sell cryptocurrencies. The SEC has notified the exchange to stop advertising and selling investments in the country.

On Friday, the commission issued a warning against Mrc Biz Ltd. which has been promoting its ICO in Thailand without approval. The company has not submitted any applications to the SEC and has neither been approved to conduct crypto business nor issue tokens, the commission emphasized.

Rapee Sucharitakul, secretary-general of the Thai SEC, was quoted by Bangkok Biz News on Thursday saying that the commission expects the finance ministry to approve the applications of some companies to operate crypto businesses such as ICO portals, exchanges or dealers in December.

Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products or companies. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

What do you think of all these companies trying to enter the crypto space in Thailand? Let us know in the comments section below.

This post is credited to news.bitcoin

South Korea’s cryptocurrency exchange Zeniex will soon terminate its services due to a recent government crackdown on unauthorized platforms, a post by Zeniex reveals Friday, Nov. 9.

The crypto exchange, a joint project by South Korea and China which opened May 2018, states in the post that due to “recent issues,” they have “come to the conclusion that continuing to operate such a service will be difficult.”

While crypto trading has already stopped on Nov. 9, all other services will be stopped on Nov. 23.

Zeniex customers are asked to withdraw all their cryptocurrencies before the deadline, as the service will then no longer be available.

Furthermore, in a separate announcement, the company states that Zeinex cryptocurrency fund Zxg Crypto Fund No. 1, which in particular has been a subject to local regulator’s investigation, is also closing on Nov. 23. Initially, the company expected its ZXG token to be listed by international exchanges, but then the decision was then cancelled, according to the press release:

“We believe that ZXG Crypto fund No 1. will have difficulties to operate smoothly with such current pressure from the financial authorities.”

Zeinex and its Chinese partner, Genesis Capital, will return the funds invested in ZXG in Ethereum (ETH) on Monday, Nov. 12.

In late October, South Korea’s Financial Services Commission (FSC) warned investors about investing in unauthorized crypto exchanges and Initial Coin Offerings (ICO), as they fail to protect investors from risks according to Korean regulation.

As local finance newspaper Business Korea explained, the notification in particular mentioned Zxg Crypto Fund No. 1. The FSC stressed that the company had never been registered by the Financial Supervisory Service as required by South Korea’s Capital Market Act.

A Zeniex representative told South Korea’s main daily business newspaper, Maeil Business Newspaper, that the company was not obliged to register as it had raised less than 1 billion won ($884,500) in total. However, the FSC started the investigation against the company, citing a lack of ability to check whether the platform is operating as claimed.

Although in early 2018 South Korea was rumored to be about to impose a strong ban on crypto, the country then decided to regulate the area instead. Banning anonymous trading, forbidding minors and government officials from trading, and taxing exchanges substantially were among the measures announced by country’s government to control crypto-related activities. The government has since recently been lobbied by local lawyers to clear up its stance on crypto and elaborate a clear legal framework.

This post is credit to cointelegraph

South Korea‘s leading virtual currency exchange Bithumb has partnered with Asian e-commerce giant Qoo10 to provide a cryptocurrency payment service, according to an official announcement Nov. 7.

Qoo10, the so called “Asian Amazon,” is a leading South Korean e-commerce company in pan-Asian markets such as Singapore, Hong Kong, China, and Indonesia. The press release notes that the partnership will expand the Bithumb cash payment service as a global payment method.

The two companies initially signed a contract in August and proceeded to work with the Qoo10 settlement service and Bithumb Cache system. Introduced by Bithumb this spring, Bithumb Cache is a password settlement service that allows Bithumb customers to convert their funds to use for payments with their password, as Cointelegraph reported Mar. 10.

Through this new partnership, it will become possible to purchase products from Qoo10 and pay for them using the Bithumb Cache. Bithumb’s press release states:

“The partnership with Qoo10 has made it possible for us to utilize the Bithumb cache beyond our home country and abroad for real life. We will continue to improve our services to improve customer convenience.”

Earlier this summer, eBay, a global e-commerce platform, had acquired Qoo10 for the total sum of $573 million, with the aim of increasing eBay’s international presence.

Last week, Bithumb partnered with U.S. fintech firm SeriesOne with the goal to open a securities token exchange in America, Cointelegraph reported Nov. 1.

According to CoinMarketCap, Bithumb is currently the number 76th crypto exchange, with a total 24 hour trade volume of more than $3,028 billion at press time.

This post is credit to cointelegraph

Hong Kong’s securities regulator issued a statement setting out guidelines for funds dealing with cryptocurrency Thursday, Nov. 1, saying it could move to formally regulate exchanges.

In what it called “guidance on regulatory standards,” the autonomous Chinese territory’s Securities and Futures Commission (SFC) set in motion a series of steps that chief Ashley Alder hinted would culminate in a formal regulatory environment.

Hong Kong differs significantly in its approach to cryptocurrency from mainland China, with cryptoasset exchange and related activities legal, though formal regulation is pending.

“The market for virtual assets is still very young and trading rules may not be transparent and fair,” Bloomberg quoted Alder as saying during a fintech forum Thursday:

“Outages are not uncommon as is market manipulation and abuse. And there are also, I am afraid, outright scandals and frauds.”

The latest proposals pertain to any fund managers investing more than 10 percent of their holdings in cryptocurrency, with entities serving exclusively professional traders able to join a sandbox scheme designed to give more room to develop new products and services.

For others, a licensing process will require entities to inform the SFC about their business practices.

The statement reads:

“In order to afford better protection to investors, the SFC considers that all licensed portfolio managers intending to invest in virtual assets should observe essentially the same regulatory requirements even if the portfolios (or portions of portfolios) under their management invest solely or partially in virtual assets, irrespective of whether these virtual assets amount to ‘securities’ or ‘futures contracts.’”

Cryptocurrency exchanges could also fall under the the SFC’s supervision more directly in future.

“…It is proposed that the standards of conduct regulation for virtual asset trading platform operators should be comparable to those applicable to existing licensed providers of automated trading services,” it adds.

Hong Kong’s sharpening of its regulatory oversight comes while more and more jurisdictions move to do the same, as Bitcoin and major altcoin markets stabilize and a general acceptance of their longevity begins to crystalize.

Last week, Taiwan announced it would release dedicated rules governing Initial Coin Offerings (ICOs) by June next year, having previously chosen not to regulate the sector.

This post is credit to cointelegraph

Bithumb, one of the largest South Korean cryptocurrency exchanges, will open up account registrations after a month-long freeze, local media outlet Yonhap News reports Wednesday, August 29.

According to a spokesperson from banking partner Nonghyup Bank, Bithumb will meet specific requirements as dictated by South Korean law in return for regaining banking support.

Nonghyup had previously suspended its services for Bithumb at the end of July, rumors at the time suggesting the decision had come after the exchange lost $17 million in its most recent hack a month previously.

“We decided to keep the investor assets separate, and we will not accept interest or deposits,” the spokesperson said.

In January, South Korea introduced wide-ranging rules for cryptocurrency exchanges, which included banning foreign citizens and ensuring all traders linked their accounts to their ‘real name’ bank account.

Bithumb has had a chequered history, with several hacks piling pressure on executives to ensure compliance.

With the fresh agreement due to come into force August 30 meanwhile, markets have already begun reacting.

Trade volumes on Bithumb, which had tanked following the banking problems, have increased precipitously in the past 24 hours, BTC/KRW posting gains of almost 70 percent versus August 27-28.

Bithumb is currently ranked fifth largest crypto exchange in the world by daily trading volumes, seeing about $362.4 million in trades over the past 24 hours.

This post is credited to cointelegraph