Fireblocks and Nonghyup Bank of Korea join hands to launch tax tokenization to instantly track product issuance and settlement

Blockchain security service provider Fireblocks has signed a memorandum of cooperation (MOU) with South Korea's NongHyup Bank to launch a tokenized service that provides tax refunds.

Fireblocks joins hands with NongHyup Bank to promote tax tokenization services

The current value-added tax in South Korea is 10%. Certain goods such as medical supplies and unprocessed food are exempt from value-added tax. Tourists can also enjoy tax-free discounts when purchasing goods, but they must exceed the minimum amount to apply. The processing fee for VAT refund is approximately 3% to 6% of the product price.

Fireblocks and NongHyup Bank will recently join forces on a pilot program aimed at tokenizing retail value-added tax (VAT) and goods and services tax (GST) refunds. Fireblocks CEO Michael Shaulov said that he hopes that through tokenization, each product can be assigned a unique digital identification code, and the entire process from product issuance to settlement can be tracked in real time, thereby avoiding manual errors and fraud risks.

South Korea actively promotes the popularization of blockchain applications and education, and improves the regulatory framework

Recently, South Korea has been very active in promoting the implementation and education of blockchain applications, and it also hopes to promote the development of blockchain in a reasonable regulatory environment. Regarding supervision, the Korean authorities officially approved the Virtual Asset User Protection Act in July to provide a legal and reasonable regulatory environment to protect the rights and interests of cryptocurrency investors. It also implements stable currency foreign exchange controls and introduces stable currency bills based on regulatory bills such as Japan and the European Union.

As for education, Yonsei University in South Korea has also joined hands with Ripple to launch the University Blockchain Research Initiative (UBRI) blockchain academic research project, aiming to drive financial progress through blockchain education and academic research. It can be seen from the above that South Korea hopes to build its own blockchain ecosystem and promote domestic economic development.

(East Asia has jumped to the sixth largest crypto economy in the world, Chainalysis: South Korean and Hong Kong institutions are important promoters)

This article Fireblocks and South Korea’s Nonghyup Bank join hands to launch tax tokenization to track commodity issuance and settlement in real time first appeared on Chain News ABMedia.