Gear Up For Litoff- South Korea's Crypto Regulations You Must Know
South Korea is third in the list of crypto exchange industry in the world in terms of volume, just behind the United States of America and Japan. Although South Korea has seen a progressive growth in the direction of driving digital currency to diverse sectors of the country, the Korean government is still making no move when it comes to fully regulating the crypto market operating in the country.
In the second half of the year 2019, the South Korean government has been working on a number of bills that are aimed at working on further legitimizing the country’s crypto sector and thus will help it to develop into an established industry.
Here, we’ve rounded up the complete timeline of how the different bills surrounding the crypto market since 2017, and the various controversies associated with these, and what is expected in the future:
July 3rd, 2017
The ruling member of the National Democratic Party, Park Yong-Jin introduced the bill to the parliament which is the first-ever taxation policy. He introduced the imposing of the transfer tax and no capital gains over the trading of cryptocurrency.
July 31st, 2017
Park Yong-Jin later in the month of July also put forth another bill named Electronic Financial Transactions Act which was later passed on October 19th, 2017. This bill includes strict policies on Anti-money laundering and Know Your Customer for crypto companies and investors.
September 1st, 2017
In cooperation with the Financial Services Commission, the South Korean government established a combat force to bring transparency in the crypto sector.
December the 4th 2017
The month of December 2017 was enveloped with a lot of counterstories and uncertainty over how the South Korean government will regulate the crypto market. After which the Ministry of Justice declared that the Korean government will be creating a task force that will ensure the strict guidelines adhere when it comes to crypto transactions in the country.
December 11th, 2017
As the Bitcoin pricing was soaring the country, there was big speculation in the media houses of the country that the South Korean government is planning to impose a full-blanket ban over the crypto trading, as per the head of the Financial Services Commission, Choi Jong-gu. His statement sparked a massive debate in South Korea, further clarification was required by the South Korean president.
January 11th, 2018
In the month of January the fire of speculation over the crypto trading ban in the country was further fueled by the Sang-Ki, former Justice Minister Park that the government is mulling over introducing banning crypto trading bills in the country. Later, this statement was refuted by former Minister Park saying nothing is set in stone.
January 15th, 2018
The statement of Park was termed as premature, and there is no official statement by the Korean government post an agreement between the Financial Services Commission and the Ministry of Justice.
February 18th, 2018
In the month of February, the ruling and opposition party in the country conducted a seminar to discuss the regulation of crypto trade in South Korea. What attendees said that there is a great need to clear the mist surrounding speculations over the identity of cryptocurrency in the country.
July 26th, 2018
Post the introduction of the bill in December 2017 that a task force is being set up to keep an eye on the cryptocurrency transactions in the country, no progress was made and this criticized a lot by the print and electronic media.
October 16th, 2019
By now the Blockchain industry is seeing progress in the country. As the government, Blockchain is an essential technology that will play a critical role in the country's Fourth Industrial Revolution. The South Korean Finance minister, Hong Nam-ki described Blockchain as the pillar to the country’s growth.
November 26th, 2019
After one complete year of silence in the country over crypto trading in South Korea, a new bill that will give an identity to cryptocurrency was pushed forward.
December 9th, 2019
In a statement, the Ministry of Finance and Economy said that they are moving ahead in the direction to impose taxes on the cryptocurrency trading and is in the process of introducing a bill.
December 30th, 2019
The media severely criticized that the controversial move of imposing taxes over crypto trading has badly hit a renewed exchange in the country, Bithumb with a whopping $70 million bill.
What Investors and Crypto Investors Can Expect in 2020?
As per the social media reports coming-in, the last three years have been quite frustrating in the crypto market operative in South Korea. Top-rated exchanges in the country, UPhit, and Bithump were severely hit owing to hacking, and the government of South Korea lagged in terms of putting a clear-cut policy over crypto trading in the country. It is expected in the year 2020, progress will be made in the direction of taxation.
Over the last six months, it has been evident that the South Korean government is making progress when it comes to implementing the anti-money laundering bill and establishes a task force, a financial watch dig under G-7
The opposition party in South Korea hold a pro-stance over crypto trading in the country.
Despite all the tough statements made since 2018, the cryptocurrency exchanges are operating in South Korea with relative stability, and this is expected this won’t change in the coming years.