South Korean lawmakers are toiling hard to enforce a set of bills which shall provide legalised plying fields to cryptocurrencies such as Bitcoin and safeguard the investors from potential threat involved.

Democratic party representative, Park Yong-jin stated on Monday that July shall witness the introduction of three revisions which is aimed at building a regulatory framework for virtual currencies. This public hearing which was held in National Assembly to throw light on matters related to cryptocurrency accepted the insights of seven panellists including general public, academia and government on tax incidence, pros and cons of cryptocurrency and consumer protection. (Also Read- Advantages & Disadvantages Of Bitcoins)

The panel jointly agreed to the notion of “state led promotion” which shall ensure the integrity of affiliated businesses and stability of cryptocurrency. No clear indication has been received regarding the audit of related corporations or government backing. But it is hoped that the probable government intervention shall put a leash to the complicated setups arising out in the Korean cryptocurrency market which excelled as the top ranked Bitcoin purchaser in 2017.

Mr. Park upheld the importance of a proper legal framework devoid of which nurturing, regulating and supporting the digital currency based industries look impossible. The legal vacuum is also unintentionally cushioning the heinous virtual currency criminals from the hands of punishment.

News of cyberattacks on cryptocurrency exchanges of South Korea like Bithumb have already spread the much needed awareness amongst masses. However codifying of safeguards is expected to shield both consumers and companies.

Much before the ruling party panel, Law professor Jung Sun-seop had advocated the necessity of legal revisions for giving due recognition to virtual currency as a mode of payment.

Financial Services Commission official Kim Yeon-june has stated that government has not yet taken its final call regarding the regulation of virtual currency. An unified tax strategy has not yet been finalised by the government as the panelists could not reach a joint consensus regarding the consideration of digital money as an asset or currency.  However there has been propositions of imposing capital gains tax on virtual currency transactions.

Lee Dae-ki, a researcher from Korea Institute of Finance is of the opinion that brokering and trading of digital currency needs to be regulated before cryptocurrency as the former activities are more prone to crimes and frauds.

In spite of proper regulation, the South Korean virtual currency market has been growing by leaps and bounds. A number of indigenous FinTech firms got an approval last week to offer international money transfer services.

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