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South Korean Crypto Exchanges Fear Government Regulation of Cryptocurrencies

Wed, 06/30/2021 - 14:47
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Alihuseyn Gulu-Zada
South Korea's cryptocurrency exchanges express concern over government moves
South Korean Crypto Exchanges Fear Government Regulation of Cryptocurrencies
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In South Korea, discussions about the regulation of cryptocurrencies continue. The latest signals from the South Korean government are causing some apprehension among South Korean exchanges. They believe that by its steps, the government is trying to impose severe restrictions on exchanges and trying to limit the use of cryptocurrencies.

In turn, the South Korean authorities do not want to ban cryptocurrencies permanently, but call for regulatory measures. They see, in digital assets, some degree of danger to the financial scheme and a possible share of fraudulent schemes. 

For example, Hong Nam-ki, deputy prime minister of South Korea, previously said that if a central bank's digital currency is introduced, it could act as a cryptocurrency. He also stressed that he was particularly concerned about the volatility of cryptocurrency.

The country's authorities have been in limbo about this for a long time. Finally, they broke their silence. Specifically, the South Korean government has given a deadline to cryptocurrency exchanges and relevant authorities in the country until September 2021 to take concrete steps. But crypto exchanges say they will sue if the outcome of this decision is not in their interests.

Recall that South Korea relatively recently confiscated cryptocurrency assets from wealthy citizens suspected of not paying taxes. Earlier, the Ministry of Strategy and Finance of the Republic of Korea announced that it would introduce a tax for miners in the amount of 20% of the value of digital assets mined during the year. 

This law will only apply to those who have mined over $2,220 worth of various cryptocurrencies in a year. The tax is expected to be introduced in January 2022.

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About the author

Alihuseyn graduated from Yale University with a focus on linguistics and philosophy. He has worked as a journalist-analyst for Trend News Agency. At the same time, he is an academically trained singer (baritone) and a composer. Alihuseyn has been involved in cryptocurrency and blockchain since 2017 and is an enthusiast in this field, considering blockchain technology revolutionary and capable of changing society. In this area, he has written several theoretical and analytical pieces.