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Tag: Bitcoin Regulation

  • Thailand’s new in-person KYC requirements

    Thailand’s new in-person KYC requirements

     Thailand’s Anti-Money Laundering Office announced that July onwards users will have to verify their accounts in person through a “dip-chip” machine in an effort to decease new account creation on crypto exchanges. 

    The cryptocurrency sphere has taken the world by storm especially during 2021 as the bull run still persists even after phenomenal gains and price surges. The market is booming and apart from minor retracements in the market, the crypto market does not appear to be cooling down anytime soon. The boom in the decentralized finance, nonfungible tokens and the real-world application and uses of blockchain is behind the persisting bull run. As the blockchain technology becomes more relevant, it is here to stay. 

    The cryptocurrency market has also brought with itself a plethora of novel problems. Regulators throughout the world have no idea or experience about navigating the crypto sphere. The decentralization of the market makes centralized regulation tricky while the complicated nature of blockchain products makes the classification of assets unclear. But lax regulation has resulted in increased crypto-related scams. 

    The South Korean government has launched a crackdown on cryptocurrencies as they have contributed largely to the increase in money laundering and tax evasion in the country. South Korea has also imposed various laws to better regulate the market – although some of the laws have resulted in controversies throughout the country. 

    Thailand is also following suit with South Korea as the country delves into strengthening its own cryptocurrency regulation. The government has launched new requirement for “Know Your Customer” (KYC) in order to prevent rampant new account creation on cryptocurrency exchanges. The dip-chip machines use a chip installed in Thai national cards to verify the user. This will also discourage foreign investors as majority of them may not be able to obtain Thai national cards for KYC verification. 

  • Majority of South Korean population supports controversial law

    Majority of South Korean population supports controversial law

    A South Korean television station YTN conducted an opinion poll on the crypto law which is set to go live in January 2022. The Korea Herald reported that 53% of 500 participants are in favor of the controversial law and support it. The survey was carried out by survey firm Realmeter.

    South Korea has been one of the most active countries in the crypto sphere of the East. The country has gone back and forth with cryptocurrency regulation and the government’s stance on cryptocurrencies. Where on one hand, there is worry about the increase in criminal activities due to cryptocurrencies, there is also the realization of the importance of the blockchain technology.

    A crackdown was launched because of the rampant increase in money laundering and tax evasion in the country because of cryptocurrencies. The decentralized nature of cryptocurrencies makes them a hotspot for illegal activities. But South Korea took strict actions to curb the problem. The crackdown is set to last till June. Regulators have joined forces and scrutiny on the cryptocurrency market has been increased.

    Amidst the crackdown, various laws have also been passed. The Act on Reporting and Using Specified Transaction Information requires accounts on cryptocurrency exchanges to be based only on real names. The most controversial law is set to launch in January 2022 which imposes a 20% capital gains tax on profits from cryptocurrencies.

    The survey conducted revealed that younger population – in their twenties – are more likely to oppose the law as that segment of the population is majorly active in cryptocurrency investment. While older population segment and females are more likely to support the law. With the controversy surrounding the new law, the new prime minister nomination has also tried to assure the masses that he will look into it to ensure there are no victims.