As it is known, South Korea has decided to give itself a series of new rules in relation to cryptocurrencies. The latest provision in this sense was that relating to the imposition of a tax on earnings from the purchase and sale of digital assets, announced a few days ago by Hong Nam-ki, Minister of Finance of the Seoul government.
A measure indicated as indispensable and which is in practice the last act of a real offensive taking place in Korea of the South. Aimed at putting order in a sector that has often grown in a chaotic manner, relying on the absence of a precise regulatory framework. As for the possible consequences of this new legislative framework, a statement of Eun Sung-soo, president of the Financial Services Commission (FSC).
Eun Sung-Soo's statement on exchanges
All the exchange of cryptocurrencies present in South Korea, around 200 at the moment, may be closed. This was stated by the number one of the Financial Services Commission, Eun Sung-Soo at a meeting of the National Assembly Political Affairs Committee held over the past week.
Eun Sung-Soo himself then explained that the platforms in question must be registered with the FSC under the Special Funds Act (Act on Reporting and Using Specified Financial Transaction Information) just revised. The problem is that, at the moment, no stockbrokers have submitted the application. In view of the fact that no companies have been registered, the exchanges may be closed in September.
The bill that has changed the existing legislation on special funds entered into force on 25 March. And its provisions will be applied starting from the next September 24th. That is when the six-month period for its implementation will expire.
The amendment specifically requires cryptocurrency providers, including exchange platforms, to meet certain requirements. Such as obtaining information security management system (ISMS) certification and issuing real name accounts. Many of these structures however, they fear that they will not be able to meet the requirements. Especially when it comes to real name accounts. Hence the prediction of Eun Sung-Soo, which foreshadows a sensational situation.
Is the atmosphere around digital money changing in South Korea?
The one put in place by the Seoul government seems to be a real cryptocurrency squeeze. Demonstrated not only by the many measures implemented over the last few months, but also by recent seizure of approximately $ 25 million in digital assets by the Tax Department of the Seoul Metropolitan Government. An act that hit hundreds of investors who had not taken steps to regularize their position vis-à-vis the tax authorities.
A squeeze that confirms the fears of a part of the cryptographic space, relating to the possibility that world governments may suddenly decide to crush a phenomenon which is seen as competitive with traditional money. If Janet Yellen's speech at the time of taking up the position of Secretary of the Treasury of the Biden administration might have seemed a mere exception, it is no longer the case. And the acts of open hostility on the part of politics take on disturbing profiles day after day for companies in the sector.