Simplify and control. When we talk about tokenization, we often mean financial assets such as stocks, bonds or gold, but technically it can refer to all types of payment or money transfer operations using blockchain technologies. On the Singaporean side, for example, we are testing international payments and money transfers using these new distributed ledger systems that significantly improve the confidentiality, fluidity and cost of various financial operations. Today we head to South Korea, where VAT collection could soon be simplified thanks to a tokenization mechanism developed by Fireblocks.
- South Korea tested tokenization to simplify VAT collection through a partnership between Fireblocks and NongHyup Bank.
- This project aims to automate the collection of taxes, thereby reducing operational costs and enhancing the security of transactions.
Fireblocks and NongHyup Bank (South Korea) launch pilot project…
The big one South Korean Bank NongHyup Bank announced in recent days that it had signed a memorandum of understanding with the Fireblocks company for the establishment of a protocol for the collection of VAT in the country based on Fireblocks Tokenization Engine. Fire blocks is a company well known in the crypto industry for offering blockchain-based solutions to large companies and working with big names in the financial sector such as BNY Mellon, eToro, BNP Paribas, Wisdom Tree and VanEck.
This time, the idea is to automate the collection of two taxes from different points of sale in South Korea: value added tax (VAT) a goods and services tax (GST). As in France, it is up to South Korean traders to collect and remit these taxes to the tax authorities, and the process is sometimes long and complicated, hence the idea of teams Fire blocks :
“Through tokenization, we can assign unique digital identifiers to assets, enabling real-time tracking throughout their lifecycle, from issuance to billing, without the risk of manual error or fraud. »
Michael Shaulov, Co-Founder and CEO of Fireblocks – Source: Cointelegraph
…simplify the collection and control of VAT with Fireblocks Tokenization Engine
VAT is 10% in the country, but some basic products are excluded and declaration costs for traders can range from 3 to 6% of the price of the item, hence the interest in introducing new solutions cheaper:
“(Our solution) not only reduces operational costs but also provides a secure and immutable record that builds trust between banks and their customers. »
Michael Shaulov, Co-Founder and CEO of Fireblocks – Source: Cointelegraph
We understand because outside simplification it is also a matter for the bank and financial authorities streamlines etc‘automate VAT collection using Fireblocks solutions, which no longer allow any frauds. Big brother is watching you and South Korean traders better watch out! But since then, control has also had its good sides Fire blocks also works closely with Coinbase International strengthen the security of transfers operated by the platform.
The tokenization of the entire financial system seems to be in full swing, and the biggest companies are currently studying the benefits they could get from these technologies to improve their processes, but above all to make significant profits. From BlackRock to UBS via the SWIFT system, nothing seems to escape tokenisation, and only the Bank for International Settlements (BIS) seems to be condemning it.
