Monday Movers 15

Japan reduces taxes on crypto startups, while a robot is appointed as CEO at a Chinese gaming company.

Highlights from the weekend:

  • Japan will be reducing taxes on crypto startups by next year
  • Robot appointed as new CEO of Chinese gaming company in metaverse
  • Ethiopian crypto providers required to register with nation's cybersecurity agency
  • Binance signs agreement with city in South Korea to boost blockchain infrastructure

Words of Wisdom:

“If crypto succeeds, it's not because it empowers better people. It's because it empowers better institutions."

- Vitalik Buterin
“The blockchain symbolizes a shift in power from the centers to the edges of the networks.”

- William Mougayar
“Blockchain is the tech. Bitcoin is merely the first mainstream manifestation of its potential.”

- Marc Kenigsberg

Finblox Performers:

The Scoop:

NetDragon Websoft Holdings Limited, a global leader in developing internet communities - has appointed a robot as their CEO. The gaming company plans to dominate the metaverse and infiltrate all corners of gaming, education, and VR/AR tech sectors. The new CEO, named Ms. Tang Yu - is a robot that's powered by AI technology. The use of AI technologies is meant to transform the corporate management landscape and create new levels of efficiency for the company. Ms. Tang Yu will help streamline process flows and hopefully improve the speed of efficiency and execution. The robot will also double as a real-time data hub and analytical tool designed to support decision-making in daily operations. In the future, the company plans to develop its algorithms based on Tang Yu to create an interactive and highly-transparent management model.

Yomiuri, a local Japanese news outlet - reported that Japan's Financial Services Agency (JFSA) is reconsidering the virtual currency taxation system. They proposed removing capital gain liabilities for undisposed corporate crypto assets at the end of each taxation year. Additionally, the JFSA plans to shift the classification of virtual assets so that the maximum capital gains tax applicable is reduced to 20%. They hope that this tax reform is a significant move that will encourage the growth and retention of startups in the country.

Japan man in mask billboards women Japanese Bitcoin mask white
2022 will the the year of creating start ups for Japan. 

If the tax update is successful, companies that hold a portion of crypto assets won't have to include them in their market valuation - or be taxed for unrealized gains. The five-year plan intends to build a sustainable and beneficial environment for startups to grow and flourish. Hiroshi Mikitan, Rakuten Group president - mentioned that “most people go to Singapore because it’s stupid to start a business in Japan." The current prime minister is working towards this new implementation mainly to boost crypto adoption in Japan. The country's lobbying groups and certain members of the government are well-aware of the heavy taxes present, and are trying to create a healthier ecosystem for startups to thrive in.

A few days ago, Binance announced that they'll be signing a Memorandum of Understanding (MoU) with the city of Busan. The agreement will guarantee the support of Binance with the technological and infrastructure development of the city's blockchain ecosystem, and the promotion of the Busan Digital Asset Exchange. Binance plans to help South Korea in several ways, from targeting blockchain initiatives and businesses - to advancing initiatives that promote societal well-being through Binance Charity. By the end of 2022, they will have a strong presence in South Korea to drive the evolution of crypto in the city.

Busan South Korea city life lights energy power mountains
Binance is on Busan's side towards sustainable blockchain development. 

Heong-Joon Park, mayor of Busan - mentioned that boosting the growth engine for the local economy will help steer it towards becoming a digital finance hub. The CEO of Binance, Changpeng Zhao - announced that he is also pleased to work with the city of Busan to bring tangible blockchain-related developments to the city. They look forward to future advances that will grow crypto adoption in Busan and beyond.

Cryptocurrency service providers operating in Ethiopia are currently instructed to register with the Information Network Security Administration (INSA) - the country's cybersecurity agency. According to the agency, strict legal measures will be enforced for entities that fail to comply with the new procedure. Additionally, the new law grants the cybersecurity agency the power to monitor cryptographic products and all related transactions.

This final decision occurred a few months after the National Bank of Ethiopia warned residents against the use of cryptocurrencies. They previously mentioned that digital currencies such as Bitcoin aren't recognized by the central bank as valid transactional and payment methods. The NBE even instructed authorities to report any illegal transactions, and the clampdown is only becoming stricter. Amidst the NBE's hostile stance towards crypto, the INSA is encouraging crypto providers to follow the newly implemented registration call.

Blockchain Events and Conferences:

...and finally, some memes for your morning:

DISCLOSURE:

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. Charts, graphs and references to any digital assets are for informational and illustrative purposes only.

Finblox Blog is associated with Finblox - a next-generation crypto ecosystem where you can buy and earn amazing rewards on your digital assets.

You've successfully subscribed to Finblox Blog
Great! Next, complete checkout to get full access to all premium content.
Error! Could not sign up. invalid link.
Welcome back! You've successfully signed in.
Error! Could not sign in. Please try again.
Success! Your account is fully activated, you now have access to all content.
Error! Stripe checkout failed.
Success! Your billing info is updated.
Error! Billing info update failed.