South Korea: New Step for Cryptocurrencies – Preparing Bill to supply legal framework
South Korea: new step for cryptocurrencies – South Korea is preparing a bill to supply legal framework and support to the cryptocurrency market. As reported on 3 July, 2017 by the Korea Herald, there are three revisions needed to make this month for building a governing framework for digital currencies. Which is being drawn up by representative Park Yong-jin, a lawmaker and member of the country’s ruling Democratic Party, Korea.
Following the bill of revising the Electronic Financial Transactions Act; traders, brokers and firms associated with cryptocurrency transactions would need to get governing approval from the Financial Services Commission. The approved conditions consist of processing capital of at least 500 million won ($436,300) and data processing abilities. From this process, we expect risks for users can be reduced relatively.
In the draft proposal, Park implied “the void of a state-led protection that guarantees digital currency’s value”, citing the need to address “digital currency’s non-exchangeability to other existing currencies” and intriguingly, “the possibility of wrecking havoc on the national economy from a digital currency bubble burst.”
South Korea has continuously been among the world’s largest bitcoin trading markets this year. Data affirms that in a 24-hour period, the Korean market is trading nearly 8.5% of the world’s traded bitcoins with a spread of just under $150 when compared to USD-based markets. With that remarkable trading amount, the bill of tax laws is necessary. The other revisions aim to improve income and corporate tax laws. Additionally, they will permit financial authorities to trace cases of tax evasion from digital currency transactions.
“User protection, tax evasion and money laundering have long been issues in terms of digital currency transaction,” Kim Kyung-hwan – head attorney of law firm Minwho told The Korea Herald. Therefore, it is vital to create a official legal framework for the digital currency environment in Korea at this time.
“Breaking: South Korea is Preparing to Regulate and Legalize Bitcoin”, retrieved on July 3, 2017 from https://www.cryptocoinsnews.com/south-korea-preparing-legalize-bitcoin/
“Bills move to give bitcoin legal grounds”, retrived on July 3, 2017 from http://www.koreaherald.com/view.php?ud=20170703000867