The chairman of South Korea’s high monetary regulator, the Monetary Companies Fee (FSC), Eun Sung-soo, has warned that the entire cryptocurrency exchanges within the nation may very well be shut down. South Korea presently has about 200 cryptocurrency exchanges, he stated.
All Crypto Exchanges May Be Shut Down in South Korea
On the basic assembly of the Nationwide Meeting’s Political Affairs Committee final week, The Korea Instances quoted Chairman Eun as saying:
All the nation’s 200 cryptocurrency exchanges may very well be shut down after September as soon as a particular monetary legislation takes impact.
Chairman Eun defined that cryptocurrency exchanges are required to be registered with the FSC underneath the revised Particular Funds Act (Act on Reporting and Utilizing Specified Monetary Transaction Data). “We at the moment are accepting functions for them to formally register their enterprise by the timeline, however no change operators have utilized to this point,” he revealed. Since no firms have been registered, he warned that “They may very well be shut down all of the sudden in September.”
The revised invoice of the Particular Funds Act went into impact on March 25 and its provisions will likely be enforced on Sept. 24 after a six-month grace interval. The modification requires cryptocurrency suppliers, together with crypto exchanges, to satisfy necessities reminiscent of acquiring Data Safety Administration System (ISMS) certification and issuance of real-name accounts.
The Monetary Companies Fee is answerable for registering cryptocurrency exchanges that meet these necessities. Nevertheless, many crypto exchanges are involved that they might not be capable to meet the necessities, significantly concerning real-name accounts, which can result in a mass shutdown of exchanges.
Chairman Eun famous that cryptocurrencies usually are not currencies, emphasizing that the federal government has repeatedly cautioned traders that their “sudden worth fluctuations are harmful.”
Moreover, the FSC chairman stated that income from cryptocurrency investments will likely be taxable beginning subsequent yr. The Ministry of Technique and Finance introduced in February that from 2022 revenue generated cryptocurrency transactions will likely be categorized as different revenue and will likely be taxed individually at a tax fee of 20%.
Final week, the tax division of the Seoul metropolitan authorities seized cryptocurrencies price about $25 million from tons of of crypto traders with delinquent taxes.
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