Schlagwort: blockchain regulation

• Most breaches involved failures in customer due diligence and identity verification processes.
• The action coincides with reports of a potential majority acquisition by Mirae Asset.
• The case reinforces stricter regulatory expectations across South Korea’s crypto sector.

South Korea’s year-end move against Korbit marks a decisive moment for the country’s digital asset industry, as regulators signal that gaps in compliance will carry real consequences.

On December 31, the Financial Intelligence Unit closed an on-site investigation into one of the country’s longest-operating exchanges with a significant financial penalty and management-level sanctions.

The action, based on findings from an October inspection, places renewed focus on how exchanges verify users, manage risk, and expand services.

It also lands at a sensitive time for Korbit, underscoring how regulatory discipline is shaping the future of South Korea’s crypto market.

The FIU announced a 2.73 billion won ($1.88 million) fine after identifying nearly 22,000 breaches linked to anti-money laundering and customer verification obligations.

The violations were uncovered during an inspection conducted between October 16 and 29, 2024, with the results later reviewed by the Sanctions Review Committee.

Alongside the fine, the regulator issued an institutional warning and imposed individual accountability measures on senior executives.

Inspection findings

A large share of the violations stemmed from failures in customer due diligence.

The FIU found roughly 12,800 cases where identity checks were not properly conducted.

These included the acceptance of unclear or unverifiable identification documents, incomplete address information, and lapses in mandatory re-verification processes.

In several instances, users were allowed to continue trading even after their risk profiles increased, without additional checks being applied.

Such practices run counter to requirements that higher-risk customers be subject to enhanced scrutiny rather than standard monitoring.

The review also identified about 9,100 cases where customers were permitted to trade before identity verification was fully completed.

South Korean rules restrict transactions by unverified users, making these cases a direct breach of core compliance standards.

Accountability at the top

Beyond operational failures, the enforcement action extended responsibility to leadership.

The FIU issued an institutional warning to Korbit, while the exchange’s chief executive received a caution, and its reporting officer was reprimanded.

This approach reflects a broader regulatory emphasis on governance and internal controls, where accountability does not stop at automated systems or compliance teams.

Instead, senior management is expected to ensure that regulatory requirements are embedded across day-to-day operations and decision-making processes.

Overseas transfers and new services

Regulators also highlighted weaknesses beyond customer onboarding.

Inspectors flagged 19 virtual asset transfers involving three overseas virtual asset service providers that were not properly reported.

South Korean rules require exchanges to disclose dealings with foreign entities and restrict transactions with unregistered providers.

In addition, the FIU identified 655 cases where Korbit failed to carry out mandatory money laundering risk assessments before introducing new transaction types.

These included services linked to non-fungible tokens, an area of rapid growth that remains subject to the same compliance obligations as other digital asset products.

Timing and sector impact

The enforcement action comes just days after reports that Mirae Asset is said to be considering acquiring 92% of Korbit for up to 140 billion won ($97 million).

Korbit currently ranks as the fourth-largest exchange among South Korea’s six incorporated crypto platforms, placing it firmly within the regulator’s line of sight.

The FIU said full details of the sanctions will be disclosed after a minimum 10-day period for opinion submissions.

The post South Korea fines Korbit $1.8M over compliance failures appeared first on CoinJournal.

• Current crypto profits can face tax rates of up to 55% under the miscellaneous income system.
• Only specified crypto assets under Japan’s financial framework will qualify for the lower rate.
• A three-year loss carry-forward for crypto investments will begin in 2026.

Japan is preparing to recalibrate how cryptocurrency gains are taxed, marking a notable change in its long-standing approach to digital assets.

Under the government’s 2026 tax reform plan, profits from certain crypto investments could be taxed at a flat rate of 20%, replacing a system that currently treats crypto gains as miscellaneous income.

That classification has pushed effective tax rates as high as 55%, drawing sustained criticism from investors and industry participants.

The proposed reform suggests that policymakers in Japan are moving toward a framework that recognises crypto as part of the broader financial market, while still maintaining firm regulatory controls.

A rethink of crypto taxation

For years, Japan’s crypto tax rules have stood apart from those applied to traditional investments. Shares and investment trusts benefit from a flat tax regime, offering clarity and predictability for investors.

Crypto, by contrast, has been subject to progressive income tax rates, often cited as a deterrent to participation.

The planned shift to a flat 20% rate aims to reduce this imbalance.

By aligning crypto gains more closely with equity taxation, the government appears to be addressing concerns that the current system discourages domestic trading and long-term holding.

The reform also reflects the growing role of digital assets in investment portfolios, moving beyond short-term speculation.

Scope and eligibility limits

The tax cut will not apply across the entire crypto market.

Instead, it will be limited to “specified crypto assets”, a category linked to digital assets handled by firms registered under Japan’s Financial Instruments and Exchange Act framework.

This structure is designed to ensure that only assets operating within a recognised regulatory perimeter benefit from the lower rate.

Major cryptocurrencies are widely expected to qualify, although authorities have yet to publish final criteria.

By narrowing eligibility, regulators can promote activity in established and liquid assets while maintaining tighter oversight of less transparent tokens.

Regulation alongside incentives

Tax reform is being paired with broader regulatory adjustments.

By bringing crypto under legal structures similar to those governing traditional financial instruments, Japan aims to strengthen investor protections.

Measures are expected to improve standards around custody, disclosures, and operational practices.

This approach signals that the government’s objective is not deregulation, but integration.

Clearer rules and stronger safeguards could make crypto participation more accessible to investors who have previously avoided the market due to uncertainty around compliance and risk.

Loss offsets and investment products

Another element of the 2026 reform is the introduction of a three-year loss carry-forward for crypto investments.

This would allow investors to offset future gains with past losses, a mechanism already familiar in equity markets but previously unavailable for crypto.

Japan is also expanding its range of crypto-linked investment products.

After launching its first XRP-linked exchange-traded fund, the country is reportedly considering additional funds tied to approved digital assets.

Together, these measures point to a gradual effort to embed crypto within the existing investment ecosystem rather than treat it as a parallel market.

The post Japan signals a friendlier crypto regime with sweeping tax reform plans appeared first on CoinJournal.

Indonesia has drawn a clearer legal boundary around its fast-growing crypto market.

The Financial Services Authority (OJK) has released an official whitelist of licensed digital asset platforms, setting out which exchanges are legally allowed to operate in the country.

The move gives investors a single reference point to check whether a crypto provider is authorised and signals a more structured phase of oversight for digital assets.

It also arrives as global firms step up efforts to enter Southeast Asia’s largest economy, where crypto participation has expanded rapidly alongside traditional capital markets.

The whitelist names 29 approved entities and their associated applications or platforms.

According to Otoritas Jasa Keuangan, the list is intended to help the public distinguish between licensed operators and those that are not authorised.

Users have been urged to trade only with platforms included on the list and to treat any unlisted services as unlicensed operators.

Whitelist reshapes crypto access

By publishing a formal register, the regulator has effectively tightened the gateway into Indonesia’s crypto ecosystem.

Until now, retail users often relied on fragmented information to verify whether an exchange was compliant.

The whitelist consolidates this process, offering a regulator-backed reference that places responsibility on platforms to maintain their licensed status.

The announcement also gives enforcement greater clarity.

Platforms operating outside the list are now explicitly positioned as unauthorised, strengthening the regulator’s hand in tackling illicit or non-compliant activity across digital asset markets.

Global firms move into Indonesia

The regulatory clarity comes as international crypto and trading firms seek exposure to Indonesia’s expanding investor base.

Earlier this month, Robinhood signed agreements to acquire Indonesian brokerage Buana Capital and licensed digital asset trader PT Pedagang Aset Kripto.

The transactions provide the company with a direct route into a market that counts more than 19 million capital-market investors and around 17 million crypto traders.

In September, Hong Kong-based OSL Group completed its acquisition of local exchange Koinsayang.

The deal secured regulatory approval for OSL to offer both spot and derivatives trading services in Indonesia, reinforcing the country’s appeal to established regional players.

Rules tighten around digital assets

The whitelist follows OJK Regulation No. 23/2025, which introduces stricter controls over digital financial assets, including crypto and related derivatives.

Under the regulation, exchanges are barred from facilitating trades in assets that are not registered or approved by a licensed digital asset exchange.

The framework also formalises the treatment of digital asset derivatives. Exchanges must obtain prior approval from the regulator before offering such products.

In addition, platforms are required to implement margin mechanisms using segregated funds or digital assets, while consumers must pass a knowledge test before accessing derivatives trading.

The regulator has said these measures are designed to align Indonesia’s market with international supervisory standards and enhance investor protection.

The post Indonesia lists 29 licensed crypto platforms as global players eye market appeared first on CoinJournal.

• The exchange restarted access on Thursday, including spot trading across 100 currency pairs.
• FCA financial promotion rules introduced in October 2023 led several crypto firms to end UK operations.
• The UK government has said it intends to establish a crypto rulebook by 2027.

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, says it has restarted services in the UK, nearly two years after tougher rules on the promotion and marketing of crypto products pushed firms to pull back.

The company, which says it has around 80 million users globally, relaunched UK access on Thursday with a set of products that includes spot trading across 100 currency pairs, reports CoinDesk.

The move comes as the Financial Conduct Authority continues to scrutinise how crypto services are advertised to British residents, while the UK government has signalled it wants a fuller crypto rulebook in place by 2027.

Why Bybit left and what changed

The FCA tightened its financial promotion regime for crypto advertising in October 2023, triggering a wave of operational changes across the industry and prompting several firms to end UK activity.

According to CoinDesk, Bybit said its return is built around meeting FCA financial promotion standards, with an emphasis on clearer communications and transparency for UK users.

The company is not licensed in the UK, but says it is operating within a framework designed to comply with the FCA’s requirements for promotions.

That framework matters because, under the rules, crypto marketing aimed at UK consumers must be approved by an authorised firm unless an exemption applies.

What UK users can access now

Bybit said UK customers can again use its services, including spot trading across 100 currency pairs, notes CoinDesk.

The exchange described the restart as a reopening of UK services rather than a limited pilot, positioning it as a return to the market after the regulatory shift.

Bybit’s policy team framed the UK as a market with a sophisticated financial ecosystem and a clearer regulatory direction, saying the exchange intends to introduce products tailored for UK users while prioritising transparency and compliance.

How Archax is enabling compliant crypto promotion

To support its UK activity, Bybit will operate and market its services via London-based crypto exchange Archax.

Archax holds a specific FCA permission that allows it to approve financial promotions, a route that can enable unauthorised firms to legally market and provide services to UK consumers.

Archax said it is supporting Bybit’s compliant access to the UK market and pointed to prior work helping other large exchanges, states CoinDesk,  including Coinbase and OKX, reach UK users without needing their own authorisation.

What the 2027 crypto rulebook signal means

Alongside the FCA’s stricter approach to promotions, the UK government has said it intends to establish a crypto rulebook by 2027.

That announcement has fuelled expectations of a more defined operating environment for exchanges, even as marketing standards remain a key gatekeeper for consumer-facing activity in the near term.

Industry watchers see the arrangement as another test case for how large global crypto platforms re-enter the UK without holding direct regulatory authorisation under evolving financial promotion oversight regimes globally.

The post Bybit returns to UK crypto market after 2 years appeared first on CoinJournal.

• Michael Selig is confirmed as CFTC chair, ending a long interim period at the US derivatives regulator.
• Selig signals a narrower enforcement focus as Congress weighs expanding the CFTC’s crypto authority.
• Leadership change comes as debate intensifies over digital assets and US market structure rules.

After nearly a year of temporary leadership, Michael Selig was confirmed by the US Senate on December 18 and will soon be sworn in as the 15th chairman of the Commodity Futures Trading Commission

His appointment brings an end to an extended interim period at the derivatives market regulator and places a familiar figure back at the centre of US market oversight.

Selig’s confirmation comes as policymakers and market participants closely track how the CFTC will position itself amid ongoing debates over digital assets, market structure, and regulatory coordination.

With Congress weighing legislation that could significantly expand the agency’s authority, the timing of the leadership change is drawing heightened attention across traditional and crypto markets.

Return to a familiar regulator

Selig’s professional ties to the CFTC run deep.

He first joined the agency in 2014, serving as a law clerk to then-Commissioner Christopher Giancarlo, who later became chairman.

After leaving the agency, Selig moved into private practice, where he advised trading firms, exchanges, and digital asset companies on compliance with US securities and commodities laws.

Earlier this year, Selig returned to government service as chief counsel to the Securities and Exchange Commission’s Crypto Task Force.

In that role, he acted as a senior advisor to Chairman Paul Atkins and was involved in inter-agency discussions on supervising digital asset markets, placing him at the intersection of securities and commodities regulation.

Leadership transition at the CFTC

Selig will succeed Caroline Pham, who has served as acting chair for much of 2025.

For several months, Pham was also the CFTC’s only Senate-confirmed commissioner, a situation that underscored the agency’s leadership vacuum during a period of regulatory change.

Under Pham’s tenure, the CFTC continued to operate but with limited long-term direction, as major policy decisions awaited permanent leadership.

Selig’s confirmation restores a Senate-backed chair at a moment when the commission’s mandate could soon broaden.

Enforcement direction and priorities

During his confirmation hearing, Selig signalled support for a more targeted enforcement strategy.

He argued that focusing on minor technical violations can consume agency resources and encourage legitimate firms to move operations offshore, without materially improving market integrity.

At the same time, he emphasised that the CFTC must remain active in pursuing fraud, manipulation, and abusive conduct.

His stated approach aligns closely with policies advanced under Pham, where enforcement efforts were narrowed to prioritise complex fraud cases and retail harm rather than paperwork-based violations.

Over the past year, the CFTC also revised its investigation procedures to provide firms with greater transparency and additional time during enforcement processes, reflecting a shift in regulatory tone.

Crypto oversight and legislative backdrop

On digital assets, Selig is expected to continue efforts to bring crypto-related activity into regulated US markets.

The CFTC has already launched pilot initiatives covering tokenised collateral and listed spot crypto products on regulated exchanges.

Selig has previously supported clearer market structure rules and stronger coordination with the SEC, the Treasury Department, and banking regulators.

His confirmation coincides with congressional debate over bills that could grant the CFTC primary oversight of spot crypto commodity markets, potentially expanding the agency’s role at a critical stage in crypto regulation.

With a full agenda and limited transition time, Selig’s early decisions will be closely watched across financial markets.

The post Michael Selig confirmed as CFTC chair, ending interim leadership period appeared first on CoinJournal.