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Tag: South Korea

  • US regulators to join hands an interagency crypto regulation team

    US regulators to join hands an interagency crypto regulation team

    The regulation of cryptocurrencies had been a sour topic for regulators all over the world. The blockchain technology is relatively newer and not many people are well-versed in it, which makes navigating it all the more difficult. Moreover, the crypto sphere is also highly dynamic. Every day newer uses and newer innovations emerge in the market which places regulators at even a more difficult place.

    The brutal market crash may have put a lot of things into perspective as regulators in the United States have decided to join hands for a cryptocurrency regulatory body. The new head of the Office of the Comptroller of the Currency, Michael Hsu, revealed that the agency had been in talks with the United States Federal Reserve regarding a regulatory body focused solely on cryptocurrency. The regulatory body is described as an “interagency policy sprint team”.

    During a virtual meeting, Hsu discussed the proposition with the Fed vice chairman of supervision Randal Quarles as well as FDIC chairman, Jelena McWilliams. Randal Quarles also disclosed that the Fed had been actively working with other government agencies for the purpose of cryptocurrency regulation.

    Asian countries have had mixed stances when it comes cryptocurrencies. Turkey is one of the countries on the forefront of war against cryptocurrency-caused problems. The country has announced a new policy which forces crypto exchanges to inform the Financial Crimes Investigation Board (MASAK) of any cryptocurrency transaction exceeding $1,200. On the other hand, South Korea had launched a crackdown of its own on cryptocurrencies. Major regulatory bodies of the country had joined hands against problems like tax evasion and money laundering that are fueled by cryptocurrencies.

  • Turkey’s new policy on crypto monitoring

    Turkey’s new policy on crypto monitoring

    The Turkish government has not been a fan of cryptocurrencies – to say the least. The government likes to maintain a strict control over its digital payment ecosystem and any disruptions are not tolerable. The Turkish government had also banned PayPal in the country for the same purpose. Now, the rise of cryptocurrencies has posed a challenge for the government and the regulators in the country.

    The Turkish Minister of Treasury and Finance Lutfi Elvan announced a new policy that forced cryptocurrency exchanges in the country to inform the Financial Crimes Investigation Board (MASAK) about crypto transactions that are valued above $1,200. The country has banned the use of cryptocurrencies as a mode of payment and now the regulatory body, MASAK, is given the power to oversee and audit cryptocurrency exchanges. MASAK has also prepared a detailed guide for crypto exchanges in the country to be followed without exception.

    Regulation of the cryptocurrency sphere has been regarded as a complex task throughout the world but now as the industry is set to become larger than life itself, governments. Have proactively started taking measures to control and regulate the market as much as possible. The South Korean government has been one of the most active in terms of cryptocurrency regulation. A law has been imposed which requires accounts on crypto exchanges to be based only on real names while another law imposes a 20% capital gains tax on cryptocurrency profits.

    The IRS, too, has finally put its approved “John Doe” summons to use. A Federal court in California granted a motion for Kraken to provide client information to the tax regulatory authority. The wave of regulation in the cryptocurrency sphere may only be the beginning of what is to come.

  • The next phase in South Korea’s crackdown on cryptocurrencies

    South Korean regulators have asked banks to provide information on their cryptocurrency clients. As the regulators try to understand the complex cryptocurrency sphere, a regulatory body in the country has asked banks to reveal information about corporate accounts of cryptocurrency exchanges that are not listed on real-name basis.

    The country had launched a crackdown on the crypto industry as cryptocurrencies have contributed to a surge in illegal activities like money laundering and tax evasion in South Korea. Various regulatory bodies have joined hands in order to curb the problem with straight monitoring of the crypto industry. Laws have also been passed to help regulate the market as much as possible.

    One of the controversial laws in a 20% capital gains tax imposed on all cryptocurrency profits. The law is set to come into effect in January 2021 and have resulted in a public outcry. Another not-so-controversial law requires users to create accounts on crypto exchanges only on real-name basis. The Act on Reporting and Using Specified Transaction Information has been in effect since March.

    However, only four major cryptocurrency exchanges in South Korea have complied with the law by setting up real name basis accounts while the rest are lagging. The regulators in the country are not taking well to the non-compliance which is why an unnamed regulator has asked bank to reveal privileged information about such corporate clients.

    The crackdown is set to last till June and it appears the regulators have full intentions of utilizing the time efficiently. Earlier, the city of Seoul had seized $22 million worth of cryptocurrencies from tax delinquents. The city’s tax authority, National Tax Service had issued a list of 1,566 individuals and companies with overdue taxes. $22 million worth of cryptocurrencies had been confiscated from 676 of the 1,566 identified tax evaders.

  • 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.

  • South Korea to approve crypto-related fund

    South Korea to approve crypto-related fund

    South Korea has had mixed opinions about cryptocurrencies. But newest developments may suggest a change in the tone of the authorities of the country relating to cryptocurrencies. The country is expected to approve a cryptocurrency fund in the country.

    A local newspaper reported South Korea’s insurance behemoth Hanwha Life Insurance’s asset management subsidiary is proposing the launch of a cryptocurrency related fund. The subsidiary Hanwha Asset Management expects the Financial Supervisory Supervisor to approve the crypto fund by May 2.

    South Korea has a ban on funds that invest directly in cryptocurrencies and listed securities. Hanwha’s crypto fund will invest indirectly in the cryptocurrency sphere through investment in mining companies and exchanges. The fund is also being dubbed as a “Digital Hero” in the country as it is designed to give cryptocurrency exposure to investors.

    The country had been vocal about the problems the cryptocurrencies have been causing in the country like money laundering and tax evasion. A crackdown had also been launched on cryptocurrencies with instructions of strict monitoring of crypto transactions. Furthermore, the country has also imposed laws to strengthen its grip on the cryptocurrency sphere. One of the new regulations imposes that accounts on cryptocurrency exchanges to be based only on real names. While another law has set to be imposed in the next year suggests a 20% capital gains tax on cryptocurrency profits.

    The new prime minister nomination of South Korea is believed to be not as harsh on cryptocurrencies as the current regime. The prime minister nominee, Kim Boo-Kyum, had ensured masses that there will no victim of the new 20% capital gains tax on cryptocurrency profits. However, the prime minister nomination has also tried to maintain a neutral stance.

  • Prime Minister Nominee: South Korea’s Cryptocurrency Stance May Shift

    Prime Minister Nominee: South Korea’s Cryptocurrency Stance May Shift

    The nominee for South Korea’s prime minister, Kim Boo-Kyum, by the president Moon Jae-In may not be as harsh on cryptocurrencies. South Korea had recently launched a crackdown on cryptocurrencies and the increase in crimes because of them but that stance may shift soon with the new prime minister nomination.

    The government had been vocal about the rampant increase in illegal activities such as tax evasion and money laundering because of cryptocurrencies in the country.  The Ministry of Economy and Finance, the Ministry of Justice, the Financial Services Commission, and the National Police Agency had decided to join hands to curb this problem. The various agencies had been playing their roles in the fight against crime and cryptos. This has resulted in increased monitoring of transactions, tight regulation, and a law that requires trading accounts on exchanges to be made only with real names.

    Recently, Seoul had announced the seizure of $22 million worth of cryptocurrencies from tax delinquents. The tax authority, National Tax Service, had identified 1,566 individuals and companies with overdue taxes. Out of these, $22 million had been seized in cryptos from 676 individuals.

    South Korea has also imposed a 20% tax on cryptocurrency profits under effect from 2022. The prime minister nominee has stated to make sure there are no victims of this law. But it is too soon for the cryptocurrency community to get their hopes up because Kim Boo-Kyum has maintained a neutral stance as he has also spoken in support of the chairman of South Korea’s Financial Services Commission, Eun Sung-soo, who called cryptocurrencies to have no intrinsic value. Kim also downplayed the matter of a petition to ask Eun to resign so if Kim is a crypto proponent he will still be surrounded by crypto critics.

  • South Korea’s Crackdown on Cryptocurrencies

    South Korea’s Crackdown on Cryptocurrencies

    With the world moving towards a fast-paced adoption of cryptocurrencies, regulators are facing a lot of problems trying to navigate the tricky waters of the crypto sphere. Throughout the world, governments have been vocal about the riskiness of cryptocurrency investment whereas others have been worried about the susceptibility of cryptocurrencies to criminal activities. Cryptocurrencies are notoriously known to be hotbeds for illegal activities especially money laundering and tax evasion because of the lack of regulation in the industry.

    Asia have had a love-hate relationship with cryptocurrencies but amidst the recent rise in crypto adoption, regulators have become increasingly strict. South Korean regulatory authorities have joined hands to crackdown on the rampant illegal activities going on in the cryptocurrency market. The Ministry of Economy and Finance, the Ministry of Justice, the Financial Services Commission, and the National Police Agency have, together, launched a plan to eradicate the problems brought by cryptocurrencies. With every agency playing its role, there has been an increase in monitoring of transactions – in the country as well as across border.

    The crackdown has come to fruition as the city of Seoul has announced the seizure of $22 million worth of cryptocurrencies on account of tax evasion from individuals and companies. The city’s tax authority, National Tax Service, had identified 1,566 individuals and company executives with overdue taxes. $22 million worth of cryptocurrencies were seized from three different cryptocurrency exchanges from 676 of the 1,566 individuals.

    Out of the total tax delinquents, 118 of them have remitted $1 million to the government. The cryptocurrency holders have also appealed to the government to not liquidate the cryptocurrencies as their value is expected to increase.

  • South Korea’s Tightening Grip On Crypto Market In The Country

    South Korea’s Tightening Grip On Crypto Market In The Country

    Among other things, cryptocurrencies are also notoriously known for facilitating illegal transactions. Because of the anonymity provided by privacy coins, they are likely to become the choice for illegal activities. However, another side of the story states data suggests most illegal transactions still happen through cash. Nonetheless, Asian governments have been wary of cryptocurrencies because of their high riskiness as well as their propensity to facilitate illegal activities.

    The government of South Korea had been vocal about their concerns with the cryptocurrency market in the country. The regulators have taken notice of the use of cryptocurrencies in money laundering, tax evasion, and other illegal activities. Major financial authorities in the country have joined hands to combat the problem.

    The crackdown is set to last till June. This period will see extremely strict regulation and close monitoring. The Financial Services Commission has directed all financial institutions to work on the monitoring of cryptocurrency withdrawals. The Financial Intelligence Unit had been designated to deal with suspicious activities. The finance ministry and Financial Supervisory Services are also monitoring cross-border payments closely.

    The country has strengthened its cryptocurrency regulation even more after imposing the Act on Reporting and Using Specified Transaction Information in March. The Act requires cryptocurrency traders and investors to trade only with real-name based accounts.

  • South Korea’s Largest Bank Joins Hedera Network

    South Korea’s Largest Bank Joins Hedera Network

    Shinhan Bank – the largest bank in South Korea in terms of total assets – has joined the governance council of Hedera. The bank official has joined the Hedera network in order to further financial innovation through Hedera’s distributed ledger which the bank stated to meet the needs of the FinTech sphere perfectly – with its security and efficiency.

    The decentralized public network will act as infrastructure for the leading bank to improve their internal processes and bring further innovations into the banking sector. DLTs have been increasing being used in the FinTech sphere and South Korea’s largest bank plans on harnessing the potential of DLTs for banking services.

    Shinhan Bank has been an active advocate of distributed ledger technology for the use of financial innovation. The bank had invested in Korea Digital Asset Custody and had also completed a demonstration platform for central bank digital currencies (CBDCs). Joining the governance of Hedera Network is just the next step in the bank’s mission to innovate and revolutionize the finance industry.

    The CEO of HederaHashgraph, Mance Harmon, had stated there had been a spike in the use of DLT in the finance sphere because of its suitability for the industry. IBM had also announced a Tech Preview with HederaHashgraph which demonstrated the juncture of IBM and Hedera’s technology for permissioned transaction processing.