Following the global regulatory concerns, South Korea plans Cryptocurrency trading tax. Moreover, South Korean officials consider cryptocurrency exchanges regulations. When would we see the framework coming into force?
14 December, AtoZForex – The majority of global regulators are concerned about the potential cryptocurrency bubble. In fact, the chief of Australian central bank has warned the public of a “speculative mania” that has prompted crazy gains in the digital currency markets.
Global Cryptocurrency Regulatory Concern
As a result of the global crypto turmoil, South Korean officials have stated that they may impose a tax on capital gains from cryptocurrency trading. While Bitcoin Futures contracts trading that was launched by CBOE had posted quite good results, policymakers now are looking into ways of regulating the cryptocurrency market.
Aside from the worries coming from the Asian side, New Zealand has also expressed some concerns in regards to Bitcoin. The central bank official has stated that Bitcoin emerges as a “classic case” of a bubble. Furthermore, the chief of the US Securities and Exchange Commission (SEC) has warned about ICO and cryptocurrency markets this Monday.
As a matter of fact, cryptocurrencies grow in popularity across Asia, with only South Korean cryptocurrency holders totaling at 1 million, according to some sources. The craze has reached critical levels, where many retail investors are leaving their jobs to trade full time on cryptocurrency markets. Even the prospect of losing the funds do not scare the investors, which causes big worries among government representatives.
South Korea plans Cryptocurrency trading tax
This Wednesday, South Korean authorities have held an emergency meeting in regards to the cryptocurrency regulation across the country. The South Korean government stated it will consider taxing capital gains from trading of cryptocurrencies. Moreover, it will also ban minors from opening accounts via exchanges.
In order to operate in the country, cryptocurrency exchanges in South Korea will need to support investor protection rules. They will also need to disclose all bid and offer quotes. Yet, these measures still need to undergo parliamentary approval. As of the moment, South Korea still maintains the bank on all financial institutions dealing virtual currencies.
In fact, the cryptocurrency market participants are already experiencing the stricter supervision. Just this week, South Korean KCC Fined BTC Korea.com for leaked user data.
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