South Korea Seeks to Tax, Regulate Crypto Transactions

Asia Blockchain Review
December 18, 2019
Australian Authorities Track Down Crypto Tax Evaders

South Korea’s Ministry of Economy and Finance is reportedly in the process of drawing up a revised bill to tax cryptocurrency transactions by the first half of 2020. 

Meanwhile, a related bill on cryptocurrency trading is being prepared by the National Assembly. The bill would take effect one year after the Assembly meets and votes to pass it into law.

South Korea Seeks to Define Cryptocurrency

Nomura Holdings, LINE Collaborate to Launch Financial Services Powered by Blockchain

The bill to tax cryptocurrency transactions is all but certain to pass into law, but will require a more adequate definition of cryptocurrencies and digital assets, according to The Korea Times. Other matters which need to be clarified include the question of whether gains in cryptocurrency transactions are similar to gains in other assets, such as stocks or real estate.

The South Korean government will also have to obtain access to trading records on cryptocurrency exchanges before it implements taxation plans. 

Similarly, the United States is in the process of accessing records of cryptocurrency transactions in a move toward regulating the digital asset.

New Regulations to Prevent Money Laundering

According to a Cointelegraph report, the National Assembly’s revised bill suggests that banks must issue real-name accounts to crypto exchanges to ensure that they comply with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) standards applied to traditional financial institutions.

The new bill, or the proposed Act on Reporting and Use of Certain Financial Transaction Information, is considered a move to bring cryptocurrency exchanges under the direct regulation of the Financial Services Commission — South Korea’s financial watchdog.

The country will also introduce a crypto exchange licensing system to prevent money laundering and bring South Korea’s crypto regulation on par with other countries.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Blockchain Enables Verification of COVID-19 Immunity
    Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

    November 21, 2020

    Illicit Cryptocurrency Activity: A Concern
    Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

    November 20, 2020

    IBM Using Blockchain to Help Businesses Reopen during COVID-19
    IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

    November 20, 2020

    Canadian Pacific Railway Collaborates with TradeLens
    Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

    November 19, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us