South Korea Daybit exchange to shut down as regulations take toll Business
South Korean digital currency exchanges are struggling under the weight of new regulations. The latest victim is Daybit, which announced that it’s shutting down in a month. Daybit cited the toughened regulations that seem to only favor the big exchanges, while pushing the smaller rivals out of business, as the reason for its closure.
South Korea has been in the past few years striving to regulate the digital currency industry. One of the measures it has put in place relates to anti-money laundering and identity verification requirements. This regulation came into effect a month ago. While it will protect the Korean investors, some of the requirements have proven to be too much for the smaller exchanges.
Australian regulator seeks ‘regulatory perimeter’ targeting blockchain space Business
Australia’s chief financial regulator intends to support the digital currency sector, despite highlighting the large number of scams affecting investors in the space.
The Australian Securities and Investments Commission (ASIC) said that while it was challenging to regulate new and emerging technologies such as digital currency, it would continue to work to “maintain, facilitate and improve the performance of [Australia’s] financial system and the firms that operate within it,” as a central part of its function.
ASIC commissioner Cathie Armour said in a panel during the Australian Blockchain Week the regulator remained interested in how digital currency could improve the operation of the wider financial system.
Seoul seizes $22M from digital asset exchange accounts over back taxes Business
Korean digital asset investors are among the world’s first to feel the sting of tax crackdowns on their gains. The Seoul metropolitan government said this week it had found and even seized such assets from over 600 “tax delinquents” individuals and heads of companies living in the city.
The announcement will come as a shock to some digital asset investors, who for years may have assumed governments didn’t understand the technology enough to enforce tax laws.
The Seoul government said it had seized assets from accounts at three exchanges worth KRW25 billion (US$22 million) from 676 people, and located assets belonging to a total of 1,566 people with authorities promising to follow up with further seizures soon.
South Africa firms rushing to list first digital currency ETF in Africa Business
South African firms are in advanced stages of applying for the first digital currency exchange-traded fund (ETF) in Africa. According to local reports, two local firms are set to lodge their applications with the Johannesburg Stock Exchange, which has rejected such an application in the past.
One of the firms seeking to list the first digital currency ETF on the JSE is DCX Capital. In a recent podcast, co-founder Earle Loxton claimed that plans are afoot to launch the first ETF in Africa’s second-largest economy. The firm is set to apply for the ETF with JSE ‘very soon,’ he revealed.
South Korea gaming firm Gamevil buys stake in Coinone exchange Business
One of South Korea’s largest gaming companies is getting into the digital currency industry. Gamevil, a publicly listed firm, has bought a stake in Coinone, South Korea’s third largest digital currency exchange. The investment comes just months after Gamevil’s rival Nexon was reported to be eyeing a stake in Bithumb, Korea’s second largest exchange.
Gamevil has acquired a 13% stake in Coinone, the Korea Herald reports. The firm paid KRW31.2 billion (US$27.9 million) to acquire 8,474 shares in the exchange.
Coinone processed $1.4 billion in trading volume in the past 24 hours according to CoinGecko. This ranks behind market leader Upbit which processed $21.4 billion and Bithumb which saw $4 billion in trading volume.