1. Russia Mined Over $3 Billion Worth of Bitcoin in 2023, Generating $556 Million in Taxes link

In 2023, Russia mined approximately 54,000 Bitcoins, valued at over $3 billion, generating around 50 billion rubles ($556 million) in tax revenue for the Russian government. Bezdelov, the president of the Russian Association of Crypto Mining, believes that the recent legalization of crypto mining will attract more investors and further boost tax revenues. Previously, Russian President Putin signed a bill officially legalizing cryptocurrency mining. Only registered Russian legal entities and individual entrepreneurs are allowed to mine, though individuals below the government-set energy consumption limit can mine without registration.

2. ​Korean Financial Supervisory Service (FSS) Plans to Audit Virtual Asset Exchanges link

The South Korean Financial Supervisory Service (FSS) plans to audit virtual asset exchanges to detect any suspicious or illegal transactions. If system vulnerabilities are found, the regulatory body will advocate for amendments to relevant regulations. The “Virtual Asset User Protection Act,” enacted on July 19, emphasizes investor protection, including requiring insurance for users’ crypto assets and mandating the separation of exchange and customer assets to prevent hacking and malicious attacks. The Financial Services Commission (FSC) stated that the FSS is empowered to inspect virtual asset service providers (VASPs) to ensure compliance with user protection obligations. The FSC can impose penalties on violators, including issuing corrective orders, suspending business operations, and levying administrative fines.

3. The Mainland of China’s Crypto News This Week

3.1 Shanghai Xuhui District Signs “Guidelines for Handling Virtual Currency in Criminal Litigation” link

Lu Hao, a member of the Party Leadership Group and Deputy Chief Prosecutor of the Xuhui District People’s Procuratorate in Shanghai, along with Yu Shengming, Deputy Secretary of the Party Committee and Deputy Director of the Xuhui District Public Security Bureau, jointly signed the “Guidelines for Handling Virtual Currency in Criminal Litigation.” These guidelines provide detailed and clear regulations for the entire process and each stage of handling virtual currency in criminal cases, including investigation and evidence collection, seizure and custody, and transfer and disposal. This initiative offers a concrete framework for the lawful management of virtual currencies involved in legal cases.

3.2 People’s Court Newspaper Publishes Article: “Judicial Disposal of Virtual Currency Must Be Standardized” link

The article highlights that in 2023, China prosecuted 428 cases involving virtual currency-related crimes, with the total amount of money involved reaching 430.719 billion yuan, more than 12 times the figure in 2022. Judicial disposal of virtual currency has become a significant challenge for judicial authorities. Shandong and Fujian provinces have proposed different approaches, including negotiating buybacks with issuers, prioritizing auctions, and entrusting third-party institutions for disposal. Common legal issues in virtual currency disposal include ownership determination, value assessment, and lawful liquidation. The article suggests that judicial practice urgently needs comprehensive guidelines for the disposal of virtual currencies, providing a clear legal framework and operational standards for this emerging area.

3.3 Anhui Wuhe Police Cracked Down on a Money Laundering Case Using Virtual Currency Platforms link

On August 29, the Wuhe County Public Security Bureau in Anhui Province successfully cracked down on a money laundering operation using virtual currency trading platforms, arresting three suspects. The group manipulated a highly covert “running points” software, using bank accounts or third-party payment platforms to disguise illegal activities as legitimate investment transactions. Through fictitious trades and dispersed transfers, they laundered money via virtual currency trading platforms, involving amounts in the tens of millions. The suspects have confessed to their crimes and are now under legal custody.

4. Japan’s Financial Services Agency Releases 2025 Fiscal Year Tax Reform Proposal, Including Virtual Currency Taxation link

According to Coinpost, Japan’s Financial Services Agency (FSA) has included cryptocurrency taxation in its fiscal 2025 tax reform request for the first time. In the section titled “Asset Income Doubling Plan and Realizing a Nation of Asset Management,” the FSA emphasized the need to discuss whether cryptocurrencies should be treated as financial assets for tax purposes. After submission, the tax reform requests will be reviewed by the ruling party’s tax committee and the Diet. Industry groups have long advocated for changes in the tax regime for cryptocurrency transactions, with many investors calling for the current miscellaneous income tax rate, which can reach up to 55%, to be replaced with a flat 20% capital gains tax. LDP member Masanobu Ogura stressed that implementing a separate taxation system would require theoretical justification, tax revenue forecasts, and public understanding.

5. US, South Korea, and Japan Hold Diplomatic Working Group Meeting to Prevent North Korean Cryptocurrency Theft link

The United States, Japan, and South Korea recently held a trilateral diplomatic working group meeting in Seoul to address North Korea’s growing cyber threats. The meeting, co-hosted by Lee Jun-il, Director-General of the Korean Peninsula Policy Bureau at South Korea’s Ministry of Foreign Affairs, Seth Bailey, the U.S. Deputy Special Representative for North Korea, and Kumagai Naoki, Japan’s Ambassador for Cyber Policy, focused on efforts to curb North Korean cryptocurrency theft, dismantle IT worker networks, and collaborate with partners to counter cyber threats from North Korea. Nearly 20 government agencies from the three countries participated, highlighting their commitment to combating North Korean cybercrime. The discussions covered sanctions, cooperation, private sector engagement, and disrupting the networks supporting North Korea’s illegal weapons programs.

Crypto Assets TAX Report — Professional,Effortless,Crypto-native. Sponsored by FinTax.

6. Qatar Financial Centre Launches “QFC Digital Asset Framework 2024” link

The Qatar Financial Centre (QFC) has introduced the “QFC Digital Asset Framework 2024,” offering clearer regulatory guidance for the cryptocurrency sector. This framework outlines the legal and regulatory basis for digital assets, covering key areas such as tokenization, property rights, custody arrangements, transfers, and trading. Businesses can now apply for licenses to operate as token service providers under this new framework. The QFC is a special economic zone located in Doha, Qatar.

7. Japan’s Three Major Banks to Pilot Stablecoin Platform link

Japan’s three major banks — Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, and Mizuho Bank — are set to pilot a stablecoin platform aimed at providing faster international settlements for businesses. The initiative, named Project Pax, will be operated by blockchain companies such as Progmat, Datachain, and TOKI, with expectations of broader global banking participation.

8. Investor in “Black Myth: Wukong”: “I Would Rather Die Than Invest in Web3 Games” link

Wu Dan, the first investor in “Black Myth: Wukong,” remarked, “At any time. My point is to focus on the team and not be misled by new directions. I have seen numerous game industry entrepreneurs shift their focus to Web3 after its emergence, and I would never invest in those individuals. Firstly, if they are not passionate about games, how could they possibly create a good game? It’s a simple truth. In two or three years, AIGC will become a significant variable and should lead to a new wave of investment ideas. However, at present, AIGC has not yet fully materialized. It has improved efficiency to some extent, but it is still not sufficient.”

9. 19-Year-Old Singaporean Cryptocurrency Trader Attacked During USDT Exchange link

A 19-year-old cryptocurrency trader from Singapore, known as “ZK,” was attacked on August 29 while exchanging 32,000 Singapore dollars (approximately 24,000 USD) for USDT in a face-to-face transaction. The incident occurred in a parking lot, where ZK was assaulted by two men posing as passersby, one of whom struck him in the face. To prevent the cash from being stolen, ZK fled to a nearby shopping mall and called for help. He eventually escaped and reported the incident to the police. Singaporean authorities have arrested two suspects, aged 20 and 21, who are facing charges of attempted robbery. ZK explained that he contacted the seller via Telegram and chose an in-person transaction to avoid transaction fees, despite having no prior dealings with the seller.

10. Insiders: News of Zhao Dong’s Release Likely False link

Sources informed WuBlockChain that the news of Zhao Dong’s release from prison is false.

Zhao Dong was taken into custody by Hangzhou police in June 2020. Earlier, the Supreme People’s Procuratorate announced that on March 24, 2022, Zhao was sentenced to seven years in prison and fined 2.3 million RMB. Following the verdict, Zhao appealed. On September 5 of the same year, the Hangzhou Intermediate People’s Court rejected the appeal and upheld the original sentence. The court stated that using virtual currency as a medium to facilitate the exchange between RMB and foreign currencies constituted illegal business operations.

According to the earlier court ruling, Zhao Dong is expected to be released in 2027.

Follow us
Twitter: https://twitter.com/WuBlockchain
Telegram: https://t.me/wublockchainenglish