Long ago, there was no need for a regulatory body to oversee crypto markets. However, as the industry has advanced considerably in recent years, and despite the absence of any regulations, the need for one has become more apparent.
South Korea has ordered the country’s regulators to oversee the country’s cryptocurrency market. The order was made by the country’s financial supervisory service and the task was assigned to the markets and banks committee at the financial supervisory service, according to a report by the Yonhap news agency.
South Korean financial authorities have recently established a committee tasked with overseeing the cryptocurrency market. The committee was established following public backlash over the government’s decision to support the nation’s biggest cryptocurrency exchange, Bithumb, in the wake of a hacking attack on January 31.. Read more about will cryptocurrency crash and let us know what you think.South Korea’s financial regulator will lead the government’s efforts to oversee the country’s growing cryptocurrency market. This mandate was given to the agency after lengthy discussions about which Korean regulator should be responsible for the sector.
Financial regulator takes on Korea’s cryptocurrency sector
It took the government several months to determine who would oversee the cryptocurrency market, the Korean Herald noted in an article published this weekend. The government in Seoul announced on Friday that the Financial Supervisory Service (FSS), one of the country’s financial regulators, has been entrusted with the task. The agency will closely monitor the implementation of the regulatory measures introduced earlier, the newspaper said. These include the law on the reporting and use of information on certain financial transactions. The latter imposes certain restrictions on cryptocurrency exchanges operating in South Korea. The Korean government has also delegated powers to the Ministry of Science and Information and Communication Technology to lead the development of the country’s blockchain industry. The department has previously addressed issues related to crypto currency. In early May, Korean media reported that in the past three months, the ministry had discovered and blocked more than 30 phishing sites that attempted to obtain the registration details of users of cryptocurrency exchanges.
South Korean government confirms plans to tax profits from cryptocurrencies
In a statement released this week, South Korean authorities also confirmed their intention to impose a tax on income from cryptocurrency transactions. Cryptocurrency investors who earn 25 million won ($22,400) or more in the next year will have to surrender 20 percent of their profits. Not all Koreans welcomed this proposal. Another development concerns crypto currency trading platforms operating in the Asian country. The Korean government has decided to ban cryptocurrency operators from directly engaging in trading or brokerage services. According to Korean ministers, the measure is designed to increase transparency in trading digital assets. Investing and trading in cryptocurrencies has gained a lot of popularity in South Korea, as cryptocurrency prices are often higher than global prices. The phenomenon known as the kimchi premium has reoccurred in recent weeks as markets have begun to decline. At the time of writing, the bitcoin (BTC) price on Bithumb, one of Korea’s largest crypto-currency exchanges, is holding above $38,000, while the global price is closer to $35,000. Seoul’s recent decisions come on top of a series of regulatory rulings that have had a negative impact on cryptocurrency markets. Chinese authorities are cracking down on bitcoin miners and have confirmed previous restrictions on cryptocurrency trading and exchanges. Meanwhile, the United States has announced new measures to combat tax evasion with cryptocurrencies, including requiring companies to report all cryptocurrency income over $10,000 in market value. What do you think about the recent regulatory developments in South Korea? Share your thoughts on this topic in the comments section below.
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Crypto, crypto exchanges, crypto industry, crypto market, crypto industry, crypto currency, Financial Supervisory Service, FSS, profit, government, Korea, South Korea, supervision, surveillance, regulation, regulators, Seoul, South Korea, surveillance, tax, trading platforms. Photo credit: Shutterstock, Pixabay, Wiki CommonsOn Apr. 27, the Korean Financial Supervisory Service (FSS) announced its plans to “shape a regulatory framework for cryptoassets” and oversee the market, and appointed a new FSS commissioner, Lee Ju-yeol, to lead the task force.. Read more about when does crypto market close and let us know what you think.
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