Regulation/Macro

The largest opposition party in South Korea, the National Power Party, has proposed a bill designed to amend the income tax law and completely abolish the planned taxation on cryptocurrency gains set to take effect in 2027. South Korea currently plans to impose a maximum tax of 22% on cryptocurrency trading profits exceeding 2.5 million won (approximately $1,665), including 20% national income tax and 2% local tax. Due to strong opposition from the industry and investors, South Korea has postponed the implementation of this tax regulation three times, with the original target date of 2022 having been delayed. The South Korean National Tax Service recently announced that they are developing an AI-based system for tracking and analyzing cryptocurrency transactions, which will officially be launched on January 1, 2027.

The Bank of Korea has officially launched the second phase of the digital won pilot project, collaborating with nine commercial banks to conduct real-world testing of a deposit token system, covering government subsidy distribution and nationwide consumer payments and transfer services. This phase of the project is termed "Project Hangang", adding Kyongnam Bank and iM Bank to the existing seven banks to jointly test the won-pegged deposit tokens built on the underlying architecture of wholesale central bank digital currency (Wholesale CBDC). One of the core goals is to reduce payment costs and offer a low-cost payment alternative for large companies and small merchants that bear high credit card fees.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has revoked the registration of 23 cryptocurrency service providers in an enforcement action. Among the affected companies, two operate entirely within foreign jurisdictions. FINTRAC's website indicates that registration may be revoked for a variety of compliance failures, including failure to respond timely to requests for information, non-compliance with registration eligibility, and failure to update records promptly. This enforcement action follows Canada's increasingly strict approach to cryptocurrency compliance. The finance minister stated that the government will continue to monitor and take new measures to address the risks posed by cryptocurrency businesses (such as cryptocurrency MSBs and cryptocurrency ATMs).

Nick Timiraos, the "voice of the Federal Reserve," stated that Federal Reserve Chair Powell revealed that if a successor is not confirmed before his term ends on May 15, he will continue to serve as the Federal Reserve Chair. Powell further stated that as long as the Department of Justice's investigation into him is ongoing, he will not leave the Federal Reserve Board. He has not yet decided whether he will continue to serve on the Federal Reserve Board if an investigation result comes out and he has a successor to take over as chair. What is confirmed is that after Powell's chairmanship ends, he can serve on the Federal Reserve Board until 2028.