Victoria O.Mon, Aug 9, 2021 7:00 PM
Watchdogs: Dog's Life Of South Korean Crypto
Regulatory compliance costs in South Korea are driving small cryptocurrency companies out of the country. South Korean officials are introducing strict rules to oversee the cryptocurrency industry. These measures often require cryptocurrency companies in South Korea to provide detailed customer data and transaction information. Strict measures often lead to increased compliance costs for exchanges and other providers of crypto services.
Concern about privacy is another problem against the background of a large amount of information provided to government agencies.
The regulatory climate has done little to dampen the enthusiasm for cryptocurrencies in South Korea. Crypto trading in the country continues to gain momentum, and stock exchange investors expect an increase in stock prices against the background of the current growth in the activity of digital currencies in the country. Maybe we will show you some cool South Korea crypto news?
South Korea is one of the most developed countries in the world. Following the technologies of the distributed registry, cryptocurrency trading in South Korea also came quickly.
The Korean won is one of the most popular fiat currencies for exchanging Bitcoin. After the market fell, Korean cryptocurrency exchanges dropped out of the top ten in terms of trading volume and lost the market to competitors from China, the United States, and Japan. The Korean authorities have gone from total denial of cryptocurrencies to understand the need to regulate the industry and have already taken a number of measures in this direction.
South Korean Cryptocurrency Laws
The regulation of cryptocurrencies in Korea reached an official level in November 2016, when a special group was created in the government, which became a center for solving the issue of cryptocurrency legalization.
The first version of the law on cryptocurrencies in South Korea was presented in 2017. According to this project, participants in trading crypto assets had to register with the FSC, deposit collateral capital and pass the identification. The initiative has not received further development.
A ban on anonymous trading has been introduced. Shortly after the law came into force, the three largest Korean banks reported on the transfer of 10% of participants in cryptocurrency trading to special registered accounts.
Against the background of the increased interest of the authorities in the cryptocurrency industry, the Korean Association of the Blockchain Industry (KBA), which includes the country's cryptocurrency exchanges, has become more active. It is mandatory to identify users, store the history of operations for 5 years, track and prevent suspicious transactions. Each exchange had to take control of the placement of new coins.
South Korean Crypto Dangers
KBA created a special group that began checking crypto exchanges in Korea for compliance with the new rules. Hackers are causing huge damage to the crypto trade in South Korea. Once the criminals stole about $37 million from the accounts.
In December 2017, after a repeated cyber attack, attackers stole 17% of all assets from the largest crypto exchange at that time, Youbit. The trading platform was able to recover only 75% of the losses.
The authorities are closely monitoring the work of the exchanges. Exchanges are being searched. What about the legal status of exchanges? They are registered as communication operators, therefore, they are not formally subject to the requirements of financial legislation.
Korean Cryptocurrency Tax
It is assumed that Korea will introduce a tax on cryptocurrency transactions. Information has been published that the authorities will impose corporate and income tax on any profit that is received as a result of cryptocurrency transfers. The amount will be up to 25%. A couple of days after the news spread around the world, the South Korean authorities said that no one was thinking about introducing a tax yet.