The chairman of South Korea’s prime monetary regulator, the Monetary Companies Fee (FSC), Eun Sung-soo, has warned that all the cryptocurrency exchanges within the nation might be shut down. South Korea at present has about 200 cryptocurrency exchanges, he mentioned.
All Crypto Exchanges Might Be Shut Down in South Korea
On the normal assembly of the Nationwide Meeting’s Political Affairs Committee final week, The Korea Occasions quoted Chairman Eun as saying:
All the nation’s 200 cryptocurrency exchanges might be shut down after September as soon as a particular monetary legislation takes impact.
Chairman Eun defined that cryptocurrency exchanges are required to be registered with the FSC below the revised Particular Funds Act (Act on Reporting and Utilizing Specified Monetary Transaction Info). “We are actually accepting purposes for them to formally register their enterprise by the timeline, however no alternate operators have utilized up to now,” he revealed. Since no firms have been registered, he warned that “They might be shut down out of the blue in September.”
The revised invoice of the Particular Funds Act went into impact on March 25 and its provisions will likely be enforced on Sept. 24 after a six-month grace interval. The modification requires cryptocurrency suppliers, together with crypto exchanges, to fulfill necessities similar to acquiring Info Safety Administration System (ISMS) certification and issuance of real-name accounts.
The Monetary Companies Fee is chargeable for registering cryptocurrency exchanges that meet these necessities. Nevertheless, many crypto exchanges are involved that they might not be capable to meet the necessities, significantly relating to real-name accounts, which can result in aof exchanges.
Chairman Eun famous that cryptocurrencies aren’t currencies, emphasizing that the federal government has repeatedly cautioned buyers that their “sudden worth fluctuations are harmful.”
Moreover, the FSC chairman mentioned that income from cryptocurrency investments will likely be taxable beginning subsequent yr. The Ministry of Technique and Finance introduced in February that from 2022 earnings generated cryptocurrency transactions will likely be categorised as different earnings and will likely be taxed individually at a tax price of 20%.
Final week, the tax division of the Seoul metropolitan authoritiesprice about $25 million from a whole lot of crypto buyers with delinquent taxes.
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