The lack of regulatory security in South Korea As a result, major Korean exchanges lose international traders and focus on the national audience.
In conversation with Cointelegraph, a representative of the crypto exchange Upbit expressed concern about Problems your platform faced when it provided its users with the Fiat-to-Crypto trading service::
“Offering the Fiat foreign exchange trading service through verified bank accounts was a critical issue for us as we have not been able to maintain the service for more than two years.”
A new partnership as a temporary solution
To resolve the issue, Upbit partnered with the bank on June 23 K bankthat only works on the internet. The officer said that This new association will allow them to resume trading in fiat currencies for users in South Korea.
However, users from other countries can certainly not use this function because According to Korean banking regulations, foreigners are not allowed to open an account with an online bank.
With the new association replacing the previous one with the Industrial Bank of Korea, Non-Korean Upbit traders have to withdraw their Fiat funds from the stock exchange by July 24th.
The Upbit representative said: “Obviously, compliance is obviously very important to us, but the fact that foreigners cannot trade through K Bank was not a critical factor in the partnership.”
Other Korean exchanges like Korbitol and CoinoneAn authentication process has also been integrated, which requires a national mobile phone number. This automatically excludes foreign traders from using these two services.
Get ready for a 20% tax
Since June, Non-resident Upbit traders pay 22% of their profits on the stock exchange when they withdraw their money. The aim is to ensure that the platform can easily pay taxes when the state introduces new regulations.
The Upbit spokesman thought about the same comment:
“Legislators proposed a 20% tax, but there was no official announcement from the South Korean Ministry of Economic and Financial Affairs. It is difficult to calculate the impact on exchanges like Upbit until we know the details of the tax new tax directive.”
He further clarified this If government taxes are less than expected, the exchange will apply refunds.