#virtual assets

➤ South Korea's ruling Democratic Party plans to accelerate the enactment of a digital asset framework law in the second half of the year to foster the sector and integrate it into the real economy. ➤ Industry participants are urging the relaxation of rules separating financial services from virtual asset businesses, advocating for convergence and the removal of restrictions on tokenized securities. ➤ The article also touches upon the US legislative landscape, mentioning the potential debate on the Clarity Act and the ongoing rule-making for the GENIUS Act stablecoin law.

➤ Zimbabwe has introduced a new regulatory framework for virtual assets, bringing cryptocurrencies under financial oversight for the first time. ➤ The regulations aim to formalize the crypto sector, attract investment, and enhance compliance, with strict requirements for licensed operators. ➤ This move is expected to foster innovation, improve investor protection, and combat illicit financial activities within the country's digital economy.

➤ Sri Lanka's Ministry of Digital Economy and SEC held an awareness forum on regulating virtual assets, focusing on domestic realities and global precedents. ➤ Key discussions included evaluating P2P channels, offshore platforms, and inherent risks in unregulated environments. ➤ The forum also covered risk management, compliance (KYC/AML), blockchain traceability, and use cases like tokenization of real-world assets and cross-border payments.

➤ Zimbabwe has launched its first crypto regulations, requiring virtual asset service providers to register annually with the Financial Intelligence Unit. ➤ The new framework includes a $500 registration fee and $400 renewal fee, aiming to formalize the largely informal crypto market while maintaining a ban on banks handling virtual assets. ➤ This move aligns with a broader trend in Africa to regulate crypto, with Zimbabwe's costs being significantly lower than in countries like Nigeria.

➤ Zimbabwe has introduced new regulations requiring virtual asset firms to register annually with the Financial Intelligence Unit (FIU) under anti-money laundering frameworks. ➤ The move aims to bring the largely informal crypto market under formal oversight, addressing concerns about transparency, money laundering, and economic instability. ➤ While traders react cautiously, the regulations align with a broader trend of digital asset regulation across Sub-Saharan Africa, with effectiveness depending on enforcement and market participant dialogue.

➤ South Korea's finance ministry classifies tokenized stocks as securities rather than virtual assets, impacting their tax treatment. ➤ This classification could lead to taxation under the Capital Markets Act sooner than anticipated under the delayed crypto tax regime. ➤ The decision emphasizes the economic rights represented by the token over the underlying blockchain technology, potentially influencing global regulatory approaches.

➤ South Korea's finance ministry classifies tokenized stocks as securities, not virtual assets, potentially subjecting them to taxation. ➤ If the Financial Services Commission agrees, taxation could begin as early as the second half of 2026 under the existing Capital Markets Act following July rule changes. ➤ This classification impacts investors who may have assumed tokenized stocks would be taxed under a separate virtual asset regime.

➤ Nigeria's Senate has passed a bill to establish a legal and regulatory framework for virtual assets, aiming to boost investor confidence and curb illicit activities. ➤ The bill proposes mandatory licensing, transparency, and compliance for cryptocurrency exchanges and VASPs, addressing regulatory gaps in a market with high adoption rates. ➤ Concurrently, the Senate is pushing to revive the struggling textile industry, focusing on job creation and local production, though power shortages and insecurity remain challenges.