Google Pay does not require authorization by the Reserve Bank of India

The High Court in Delhi has ruled that Google Pay is merely an app provider, neither a payments services provider nor a system provider within the Indian online payment system UPI and, therefore, does not require authorization by the Reserve Bank of India. Further, the data stored by Google Pay in the process is also legal. The case had been initiated as a so-called “public interest litigation” by a lawyer in his own name who effectively wanted Google Pay to be shut down. Alas, this did not work.

The court decision can be found under the following link: https://lnkd.in/dcHGx6YD.

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Your contact person in India: Dr. Jörg Schendel

Suman Khaitan & Co.

W-13, West Wing, Greater Kailash Part-II
Delhi 110048, Indien

www.sumankhaitanco.in
germandesk@sumankhaitanco.in
schendel@adwa-law.com

Costly minutes

If you are a member of the management of a German, Austrian or Swiss company having a Korean subsidiary, and/or yourself a European (managing) director, or manager who is registered in the commercial register in Korea as a member of the Board of Directors of a Korean subsidiary, it would be right to ask yourself what should be decided at an annual general meeting of such a Korean subsidiary and what the consequences would be if you cannot answer the first question and are therefore presented with incomplete minutes that you may even sign or seal. One of the mistakes related to so-called housekeeping work is that, for example, the maximum amount or remuneration payable to the members of the board of directors (i.e., the representative directors and directors), as well as a statutory auditor, who are registered in the commercial register (hereinafter, the “Officers”), is often forgotten to be included in the agenda for a members’ or shareholders' resolution. To put it briefly but straight to the point: By failing to adopt (and properly record) a resolution approving a maximum amount of remuneration payable to the Officers (including salaries, bonuses as well as retirement benefits), but subsequently paying such remuneration, the Korean subsidiary will sooner or later have to expect, that the Korean National Tax Service will not recognize such remuneration paid as business expenses during an audit, and the company will have to pay corporate income tax on these expenses (as well as a fine for late payment and for non-filing).

In addition, the representative director, on the other hand, runs the risk that the members or shareholders of the company may claim that he/she should be liable for damages suffered by the company as a result of the failure to adopt the necessary resolution regarding a maximum amount of remuneration payable to the Officers, namely for the corporate income tax payable in arrears on the amounts disallowed as business expenses as a result of such failure and certain fines. The corporate income tax rates in recent years have been 10%, 22%, or 24%, depending on the amount of the company's profit, posing already significant damages which is apparent. Nowadays, more and more foreign nationals are registered in the Korean Commercial Register as BoD members of a Korean company without actually being involved in the management of the local business of that company, which results in the management of the company having less and less distinctive detailed knowledge of Korean corporate and tax law. Even if the company finds a local representative director capable of successfully managing it on a day-to-day basis, this does not necessarily mean that this person also has the required knowledge and experience in legal and tax matters. In order to avoid unpleasant events related to legal and tax issues, it is therefore advisable to seek advice from Korean law firms well in advance of members' or shareholders' meetings.

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Your point of contact in Korea: Joachim Nowak

DAERYOOK & AJU LLC

7 - 16F, Donghoon Tower
317, Teheran-ro, Gangnam-gu
Seoul 06151, Republik Korea

CELL +82 10 9001 6430
TEL   +82 2 3016 9594
FAX  +82 2 3016 5222

www.draju.com
nowak@draju.com

Further easements in the employment of foreign workers in Malaysia

Although the situation is much better than in #Europe, several industries suffer from a shortage of workers. For this reason, the Malaysian government implemented easements for the employment of foreign workers, such as its “Workforce Recalibration Programme,” under which foreigners, who are illegally in the country, may be “legalized” and then employed. This allowed to increase the pool of foreign workers.

To facilitate the process further, the Immigration Department recently implemented a one-stop centre, which greatly facilitates the registration of foreign workers and thus speeds up the process significantly.

Already in June this year, the government implemented a new system which greatly speeds up the process of applying for work permits and extending them.

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Your point of contact in Malaysia: Dr. Harald Sippel

Skrine

Level 8, Wisma UOA Damansara
50 Jalan Dungun, Damansara Heights
Kuala Lumpur, Malaysia

TEL        +60 1 8211 4958
FAX       +60 3 2081 3999

www.skrine.com

Philippine Central Bank: Nurturing Cryptocurrency Innovation with Regulatory Sandboxes and Consumer Protection

Philippine Central Bank, also known as Bangko Sentral ng Pilipinas (BSP), had taken a generally supportive stance towards cryptocurrencies while also emphasizing the need for regulation and consumer protection.

The BSP acknowledged the potential benefits of cryptocurrencies, such as faster and cheaper remittances, financial inclusion, and improved efficiency in payment systems. However, it also cautioned about the risks associated with cryptocurrencies, including price volatility, fraud, and security concerns.

Quite early, the BSP issued Circular No. 944, which provided guidelines for virtual currency exchanges operating in the Philippines. This regulation required virtual currency exchanges to register with the BSP and implement certain measures to prevent money laundering and terrorist financing. It aimed to strike a balance between promoting innovation and ensuring the stability of the financial system.

Now this earlier circular is supplemented by Circular 1153. It addresses a regulatory sandbox framework issued by the BSP which refers to a set of guidelines for a controlled, time-bound, live testing environment which “may feature regulatory waivers at the (BSP’s) discretion.” The testing environment may involve limits or parameters within which firms must operate.

Regulatory sandboxes do allow small-scale, live testing of innovations by private firms in a controlled environment under the regulator’s supervision. This can help regulators to collect important insights before deciding if further regulatory action is necessary, foster the innovation needed for overcoming the barriers to financial inclusion, and benefit customers, fintech startups, regulators and investors. A regulatory sandbox can also reduce the cost of innovation, reduce barriers to entry, and allow regulators to base their regulatory response to innovations on the results of live experiments.

To introduce a cryptocurrency-related application in the Philippines under the sandbox regulation, the applicant would typically need to follow the guidelines and regulations set forth by the BSP. The BSP has implemented rules and requirements to govern virtual currency exchanges and other related businesses. These include a business registrationwithin the Philippines, a registration with the Securities Exchange Commission and a Registration with the BSP. The later registration must include details about the business model, technology infrastructure, compliance measures, and anti-money laundering and know-your-customer (AML/KYC) procedures.

Furthermore, measures to protect consumers and their assetsneed to be implemented. This includes providing clear and transparent information about the risks associated with cryptocurrencies and maintaining robust security measures to safeguard customer funds and personal information.

Participants whose sandbox activities are assessed assuccessful and whose products or services are deemed fit for public consumption shall be issued an authority to operate. The period of its validity presently is limited to 12 months.

In summary, the BSP is fostering the development of cryptocurrencies and blockchain technology in the financial sector, but also emphasize the importance of consumer education and awareness regarding the risks and features of cryptocurrencies well of the avoidance of money laundering activities.

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Your point of contact in the Philippines: Lutz Kaiser

Villanueva Gabionza & Dy Law Offices

20th/F Corporate Center
139 Valero St., Salcedo Village
Makati City 1227, Philippines

CELL      +63 995 985 4957
TEL        +63 2 8813 3351
FAX       +63 2 8816 6741

www.vgdlaw.ph
manila@adwa-law.com

Terminating Employment in Taiwan

In private as well as in business life, separations happen. This also applies to employment relationships. When terminating employment relationships in Taiwan, German companies encounter familiarities but also significant differences that companies should be aware of in order to avoid/reduce negative effects.

Both legal systems have in common that lawful terminations require a reason. In Taiwan, these are regulated for ordinary terminations in Article 11 and for extraordinary terminations in Article 12 of the Taiwan Labor Law. In addition to the accrual of compensation payments in the case of ordinary terminations and the reimbursement of vacation days not taken, it is important to note, especially in the case of terminations for reasons which lie in the person of the employee, that these reasons must not only be precisely documented, but that a plan to remedy the deficiencies must be laid out first. Only if this is unsuccessful is there a reason for termination. Without evidence of the reason for termination, there is a risk that the company will have to reinstate the employee if he/she prevails in court, and have to pay any outstanding salaries until the court proceedings are concluded.

It is therefore important to document all steps in the termination process in detail. Furthermore, the company must check whether other options for ending the contract are more suitable (such as settlements).

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Your point of contact in Taiwan: Michael Werner

Eiger Law

Bldg. A, 2F, 25-2 Ren Ai Rd, Sec. 4
Taipei 10685
Taiwan

CELL      +886 9 8726 1326
TEL        +886 2 2771 0086
FAX       +886 2 2771 0186

www.eiger.law
info@eiger. law