Why Are Crypto Firms Leaving Japan?
According to some crypto businessmen, Japan should reduce corporate taxes on cryptocurrencies; to prevent entrepreneurs from leaving the country. At least 20 or more firms have established their crypto businesses overseas rather than in Japan. The reason for this is high taxes. The founder of Stake Technologies, who moved his firm to Singapore in 2020, said he hopes the Japanese government will change its corporate tax next year.
If that happens, he wants to bring his company back home. He estimates that it may take a few more years before Japan lowers individual investors’ income tax on cryptocurrency earnings. It’s worth noting that crypto lobby groups in Japan are asking the government to ease corporate tax rules. They appear to be stifling the growth of the local digital asset industry.
Crypto.com Protected Licences in South Korea
Crypto.com is a rapidly-growing cryptocurrency platform. It has announced that it has secured the Electronic Financial Transaction Act and registered Virtual Asset Service Providers by purchasing ‘PnLink’ and ‘OK-BIT’. The firm’s co-founder expressed that this is an exciting next step for Crypto.com in an important market. The company is committed to working with regulators to continue bringing products and services to market, especially in countries like SK, where consumers have shown great interest in and use digital currencies.
The general manager believes that the services can help further develop and strengthen Korea’s commerce and support the more enormous creation and development of the Web3 ecosystem. Korea is a significant market for Crypto.com to advance blockchain technology. The firm is committed to the mission to be leading in regulatory compliance, consumer safety, awareness, and protection. Crypto.com aims to be a safe and regulated platform for Korean users. The business actively grows and expands its ecosystem. It currently has above 50 million users worldwide.
Warnings to Crypto Industry
The SEC has recently expanded the list of ‘securities’ with more digital assets. However, Congress and crypto supporters received an alert from a lawyer due to the SEC’s illegal expansion of the Howey test. John Deaton, a lawyer for XRP owners, said in the SEC Vs. Ripple lawsuit that crypto traders should pay attention to the Commission’s recent activities. The attorney cited the Commission’s last argument in its summary judgment motion against LBRY. According to him, one of the SEC Chairmans, Gary Gensler is illegally trying to alter the law.
According to WatchDog’s lawyer, suppose someone purchases a token for use. In that case, we can say that they also anticipate making a profit. Hence, we can consider this a security. Deaton emphasized that the decision from the judge will come shortly.
XPP Lawyer Focuses on SEC Claims about XRP Token in Ripple dispute. According to him, the Commission says that XRP embodies all of Ripple’s efforts. Still, the token itself represents an investment contract, including the secondary market.
Deaton said that if the argument receives a green light, crypto traders could be at risk. Just owning an asset can bring them into a joint venture. In compliance with the argument, the SEC indicated that the asset’s utility would not matter. Even if the buyer buys the asset with the intention of full consumption, he expects the security price to increase. The Commission knows that independently of promoters, cryptocurrency investors can trade assets.
Bitget Launches US$200M Protection Fund
Bitget launched a $200 million fund. It will ensure the safety of its users and their assets, despite the current volatility in the market. The fund focuses on the increased security requirements arising from the “crypto winter.” The leading names are quickly shut down and lose the client’s money. The breakup of Terra/LUNA and Celsius received the most media coverage. Bitcoin recovered the $20,000 mark. It is currently trading at $24,000. However, there are still fears that the “crypto winter” is not yet over.
Providing a $200,000 protection fund will help Bitget maintain trust among its users. The fund consists of 6000 BTC and 80 million USD. Naturally, if Bitcoin falls, the fund’s value will also fall. The fund is completely self-funded and does not rely on third-party insurance policies. Therefore, it can effectively cover the loss of users’ funds without external bureaucracy or policy changes. Bitget has pledged to provide fund value for the next three years. The fund will act as a guard for Bitget clients. It will also help usher in a new era of security and protection in the crypto space.