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
    Digital Disruption 2020: A True Survival Story
    Asia Blockchain Review had a chat with the Enterprise Strategist of Amazon Web Services (AWS), Mark ...

    August 5, 2020

    Digital Money or Currency: Blocklime CEO Explains
    In 2020, we have witnessed digital currencies being discussed, and Asia Blockchain Review explored t...

    August 5, 2020

    Honouring Bitcoin in Malaysia – A Refreshed Perspective
    ABR asked Jason Chew, the Managing Partner of Bitcoin Malaysia about the whole ordeal of establishin...

    August 5, 2020

    IBM: Security Response Planning On The Rise
    IBM Security announced the results of a global report examining businesses’ effectiveness in prepari...

    August 4, 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