South Korea Joins Hands With Japan And China To Bring Upon Uniform Crypto Regulations

South Korean regulators have been trying to bring upon crypto regulation for quite some time now. Raids were conducted by the concerned authorities at the trading exchanges in search of tax avoidance cases. But the authorities could not usher in much improvement in the department of tax levy given the lack of proper regulation. This served as the biggest reason behind South Korean authorities trying to activate a regulatory overdrive at the earliest. Thus, it did not come as a big surprise when the concerned government revealed their plans of bringing forth certain taxes which are already covered under the present law structure.

The country’s government announced recently that it can levy certain form of taxation on the profit gained through crypto dealings without having to alter the legislative structure. The new laws shall get finalised within the first half of 2018. The regulators are all set to establish collaboration with Japan and China for implementing the new rules in regards to crypto trading. Yonhap News published a report on 8^th January stating that representatives belonging to Korean Financial Services Commission (FSC) had teamed up with those coming from Chinese and Japanese agencies last month for discussing about the crypto investment oversight. Choi Jong-ku, the chairman of FSC revealed to reporters that the countries wish to put an end to speculative trading by cooperating with each other and taking a common stand. Jong-ku who had termed cryptocurrencies as “irrational” was quoted as saying that, “[A] fever of speculative investment in cryptocurrencies is ongoing … however, cryptocurrencies are unable to play a role as a means of payment.”

The report followed a statement made by the Financial Supervisory Service (FSS) and Financial Intelligence Unit of the country which outlined how six banks were being inspected by both the bodies for ensuring compliance with the freshly implemented regulations in the field of anti-money laundering. The banks are known to have ties with various popular bitcoin exchanges of the nation which have been benefitting from record price hike and trading volumes off late. Such exchanges are trading with premium priced cryptos in stark contrast to the rest of the world. Concerns of price speculation have also been expressed by the South Korean officials in the past. Popular industry website, CoinMarketCap excluded three Korean exchanges given their massive price differences from its data sheet earlier this week.

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