Over the past year, the cryptocurrency community in South Korea has had to adapt to a number of new regulations and government frameworks tailored to the growing industry.
As the regulatory landscape for digital assets is changing significantly, However, there has been some confusion as to which Korean government agency or regulator is tasked with overseeing various aspects of cryptocurrency-related activities.. According to a local report, a joint statement released on Friday is set to clarify these issues for a society of undeniable crypto enthusiasts.
The declaration describes that the Financial Services Commission (FSC) is tasked with overseeing the digital assets business, setting regulations for the sector and ensuring the implementation of strict anti-money laundering measures by cryptocurrency companies.
In particular the current FSC director Eun Sung-soo, He recently fell out of favor with the crypto community for making derogatory comments on the asset class and denying that the government’s obligation to protect investors only because of the local popularity of cryptocurrencies.
As the Friday report states, Sung-soo has stepped back a bit, stating that investors who transfer their holdings to cryptocurrency companies that are registered with the authorities will be protected by the government.. However, the joint statement emphasized that personal responsibility remains of the utmost importance as cryptocurrencies are not yet recognized as a currency or financial product in South Korea:
“Nobody can guarantee its value and there is a risk of massive losses due to the volatile currency environment at home and abroad.”
In addition to FSC, the Ministry of Finance, the Fair Trade Commission and the national tax services as well as the Korean Customs Service are charged with monitoring certain areas of the regulation and monitoring of cryptocurrencies. What’s more All crypto companies, including custodians, exchanges, and brokers, must register with the Korea Financial Intelligence Unit by September 25th. Failure to do so could face up to five years in prison and a fine of 50 million won (approximately $ 45,000).
The new rules for cryptocurrency users include imposing a 20% tax on Bitcoin (BTC) and cryptocurrency revenues of more than 2.5 million won, or approximately $ 2,250.. The tax law comes into force on January 1, 2022. Commercial cryptocurrency operators must also use real money accounts with banks. Of the 60 exchanges estimated to be active in the country, only four do so, according to the government (Upbit, Bithumb, Korbut and Coinone). Another 20 have been certified by the Korean Internet and Security Agency for Information Security Management Systems.