South Korea begins inspection of domestic banks – Tough times for cryptocurrencies?

The Financial Services Commission [FSC] of South Korea has announced that it will inspect three domestic banks which services cryptocurrency exchange to check for compliance. This inspection which will commence on 9th April aims to check if the banks are adhering to the new anti anonymity regulations which were introduced in January.

The Legislation which was introduced allowed Koreans to hold only one account if they wanted to use the exchanges to trade and the identity details must match their bank account.

In a statement, they have announced:

“We have already executed sufficient procedures for confirming the identity of a member when receiving a new member via a corporate account and it is against equity to allow only a few exchanges to issue new virtual accounts.”

FSC had recently announced that it intends to ban anonymous cryptocurrency trading and it requires trader’s accounts to be associated with bank accounts. This should be registered under their real names and it had banned officials in public posts from holding and trading cryptocurrencies under civil servant’s law.

The Ministry of Strategy and Finance has said that a taxation framework for cryptocurrencies is on the mesh. A spokesperson speaking to Fuji News Network, FNN said that they have not kept any specific time frame and were thinking about announcing a virtual money tax in the first half of the year.

This comes despite announcements that South Korean Exchanges will be taxed with existing tax policies which include 22% corporate tax and local income tax of 2.2%. The government has drafted an income tax which is based on “transfer income tax that levies a tax on profits” which is made from crypto sales.

FNN has announced that Korean government has decided to set up full-scale virtual currency regulation after local elections which will be held on June 13th and are planning on holding a virtual currency international conference on June 14th for G20 members.

Source: Read Full Article

Leave a Reply