Crypto Compliance in South Korea and Lido Finance's DeFi Growth
South Korea to Crack Down on Crypto Compliance
South Korea is strengthening its regulations on cryptocurrency transactions and forcing its investors to report their holdings located outside the country. "Failure to declare these assets may bring about heavy penalties or potential prosecution," said Kim Dae-kyung of Hana Bank Asset Management. All these new rules are meant to enhance transparency in financial accounts with an eye on reducing tax evasion, whereby with the data-sharing agreements of its own, the National Tax Service now can access detailed overseas account information. Now, South Korean investors are up against those strict compliance requirements or face a "tax bombshell". Crypto holders need to make sure they're fully compliant with a June 30th deadline to report overseas financial accounts, or they will be facing heavy fines. This move represents an increasingly regulated and transparent trend in crypto markets throughout the world.
Lido Finance Hits 1 Million Validators: A Milestone for DeFi
On the other side of the crypto world, Lido Finance has reached the high side with its milestone achievement of hitting 1 million Ethereum validators, controlling over 28.5% of all the staked Ether. This also places Lido as a frontrunner in the decentralized finance (DeFi) sector, seeking to topple traditional financial systems with its innovative liquid staking solutions. Users can lock their Ether into Lido and, in return, receive staked ETH (stETH), which can be used fully and not locked for staking. However, this growth raises concerns of centralization, especially with the big control of Ethereum validators by Lido. In fact, a section of critics is comparing notes on the possible risks of such centralization under the DAO model with Ethereum co-founder Vitalik Buterin. Even then, Lido Finance rising, in DeFi, has been a sign of surety that the increase in stars is starting to get traction. Total Value Locked (TVL) in DeFi, on the other hand, points to huge growth propped up by liquid staking and increasing asset prices, signaling strong expansion within this vertical.
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