Retail users in Vietnam who trade on offshore crypto exchanges like Binance or OKX face heavy penalties. Network School controversy in Malaysia over Israeli citizen ban.
Vietnam will fine retail crypto users up to $1,900 if they trade on unlicensed overseas platforms such as Binance, OKX and Bybit, instead of on licensed local exchanges.There’s just one problem: Vietnam’s Finance Ministry has yet to issue any exchange licenses for its regulated digital asset market, which is due to start on Sept. 1. Five exchanges have been approved in principle however.Domestic investors who trade crypto that’s been designated exclusively for foreign investors can be fined up to $3800. Crypto companies providing or advertising services without a license, those who fail to properly ID customers, or unlawfully deal with crypto account data, can be fined up to $7600.
Balaji Srinivasan’s utopian Network School in Forest City, Malaysia is under fire over allegations it has been hosting Israeli citizens using second passports.The claims trace back to an activist group Malaysia Protest 4 Palestine, which has accused the school of becoming a “gathering place for Israeli entrepreneurs.” In other countries such a kerfuffle might result in a few BDS protesters or a boycott, but Malaysia has no diplomatic relations at all with Israel, and bans Israeli citizens from even visiting.That said, dual nationals with Israeli passports are allowed... for now, although the controversy suggests that particular loophole may be closed soon.
Vitalik, Bryan and Balaji at the Network School. (X)
The incident made international headlines after Srinivasan threatened to pull the Network School and its millions in investments out of the country.
The Immigration Department said its investigation had found the 266 foreigners have valid documents, while the Johor state government is plowing ahead with a probe to ensure compliance with regulations on business licenses, building usage and commercial operations.Ironically, the Network School is based on the concept of online network states, which are meant to be above such petty IRL squabbles.
The Japanese Parliament has passed revisions to the Financial Instruments and Exchange Act and now classifies cryptocurrencies as financial assets.
The move takes crypto regulations out of the Payment Services Act and comes with a mixed bag of tax benefits along with harsher fines and regulations that befit crypto’s new status up there alongside TradFi assets.
Unlicensed crypto platforms face a fine of 10 million yen or 10 years in jail and there’s a new ban on insider trading in crypto that will be policed by the Securities and Exchange Surveillance Commission.
On the upside, current crypto tax rates of up to 55% will be slashed to approximately 20%, with a three year carry forward provision for any losses... which neatly lines up with a bull run every fourth year. Unfortunately the new tax rules don’t come into effect until 2028.
South Korea has proposed updating its national asset management scheme to include crypto and IP under the definition of “national assets.”
The Ministry of Economy and Finance announced it is rewriting the 1950 State Property Act, as the National Asset Basic Act, which would make it the first national sovereign asset management statute to embed cryptocurrency.
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