Reflections from Asia: A Fresh Look at the U.S. #77
South Korea | Japan | Hong Kong | Interview with Kaia DLT Foundation Chairman
Welcome back! I am Coco.
In this issue, I’m sharing a few reflections from my recent trips to Asia, along with a fascinating interview with Dr. Sam Seo, Chairman of the Kaia DLT Foundation.
He discusses the merger and transformation of two previously rival and struggling blockchains, backed by two of Asia’s largest messenger SuperApps respectively: Kakao and LINE, which have 250 million Web2 users combined.
I wanted to share a quick update from my recent trip to Asia. Stepping outside the U.S. always helps me see it more clearly.
My first stop was South Korea, a country I had never visited before. I was struck by how clean, orderly, and efficient everything was. People were polite and eager to help, and the general atmosphere was impressively well-organized.
It’s hard to imagine that this country went through a brutal war more than 74 years ago with North Korea and China. Today, more than 28,000 U.S. soldiers are still stationed in South Korea.
In Seoul, I came across a political demonstration. Vendors were selling merch, including hats that read “Stop the Steal.” It felt oddly familiar. After speaking with some locals, I began to understand the context.
Like the U.S., South Korea is politically polarized. Older generations tend to support the conservative party, the People Power Party (PPP), while younger people lean liberal.
The sitting president, Yoon Suk Yeol, from the conservative party PPP, had been impeached by the National Assembly, following his declaration of martial law on December 3, 2024.
While I was still in the country, the Constitutional Court upheld the impeachment and removed him from office on April 4, 2025. A new election is now on the horizon, a national reset that many seemed to welcome.
The experience reaffirms to me how closely the rest of the world is intertwined with the U.S., watches and follows the U.S.
While in Seoul, I met with a government official overseeing small- and medium-sized enterprises. I asked him about South Korea’s stance on crypto regulation. He told me they were watching developments in the U.S. very closely. Falling behind wasn't an option, he said, and once a new president is elected, progress might speed up.
South Korea has a vibrant retail investor base, especially among young people. Currently, crypto gains are tax-free, although there’s been ongoing debate about introducing taxes. The government maintains strict capital controls, and licensed centralized exchanges are required to partner with banks and enforce AML/KYC compliance.
Japan, on the other hand, has a much clearer plan for crypto and the digital industry. On a panel titled "Current State and Challenges of Global Web3 Regulation" at the Web3 Festival in Hong Kong, Chairman of Japan Virtual and Crypto Assets Exchange Association (JVCEA) Genki Oda highlighted forthcoming changes in Japan's crypto industry.
Firstly, Japan is considering classifying crypto as a new asset, which would help reduce the crypto gain tax from the current 55% to 20%.
Secondly, Japan plans to launch Bitcoin ETFs in April 2026. Thirdly, JVCEA is advocating for raising crypto trading margin from 2x to 10x. I am not sure about this. Higher margins tend to encourage more speculation and cause greater loss.
Genki pointed out that, at its peak in 2014, Japan accounted for more than 50% of global crypto transactions, and he expressed hope the country could grow its share from the current 1% global market share to 20% in the foreseeable future. Quite an ambitious plan.
Hong Kong regulators have been watching too. During the Web3 Festival, they gathered some speakers from the U.S. to understand why the U.S. government wanted to establish a Strategic Bitcoin Reserve.
Starting from late last year one of the council members in Hong Kong has been advocating for Hong Kong to look into creating a Strategic Bitcoin Reserve, after learning about some U.S. states’ efforts.
Interview with Chairman of Kaia DLT Foundation
00:00 Opening
01:12 Meet Dr. Sam Seo: Journey into Blockchain and Kaia
03:23 The Birth of Kaia: Merging Klaytn and Finschia
07:55 Comparing Kakao, LINE, Facebook, Telegram, and WeChat
08:51 Post-Merger Restructuring and Positioning
14:21 Applications Building on Kaia
16:54 Improving UI/UX: Private Keys, Gas Fees, and Other Practices
20:30 Kaia’s Strategies to Attract Web2 Users
22:41 Major Hurdles to Web3 Mass Adoption
25:09 Kaia and Stablecoins
26:07 How Kaia Generates Revenue
28:45 Differing Mindsets and Approaches to Web3: the U.S. vs. Asia
31:27 Building a New Chain vs. Using Existing Chains
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I am Coco Kee, author and host of World Ledger with Coco Kee newsletter and podcast, a rebrand from BlockchainAsia, the Co-founder of Kee Global Advisors, and a dog lover with a Goldendoodle, Lucy.
My podcast is available on Substack, Apple Podcasts, Spotify, YouTube Podcast, and many other major platforms like iHeart Podcasts, Goodpods, and Amazon Music Podcasters.
Email: worldledger@substack.com
The content in the newsletter and podcast is for informational and educational purposes only, represents personal views and opinions, and does not constitute investment advice or recommendations.