In a move that South Korea will become more cryptocurrency-friendly, President Yoon announced that he plans to establish a new regulatory framework for the cryptocurrency industry by 2024. Looks like we could get another big win in commerce.
According to Leaked government documents The Korean government plans to pass the Digital Asset Framework Act (DABA) next year, according to the National Newspaper. It is one of the 110 policy goals announced by the new president earlier this year.
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This law institutionalizes digital assets such as cryptocurrency and goes into effect in 2024. The administration also decided to introduce a central bank digital currency (CBDC) by amending the Bank of Korea Act next year.
According to the statement, the administration has put in place a policy to prepare a plan for the “Fundamental Law on Digital Assets.” This framework is one of the 110 national tasks proposed by the new president earlier this year, and this is the first time that the annual implementation plan has been made public.
Key points from the draft crypto bill
The legislation is based on international norms and will draw on the experience of the world’s largest economies. The local Financial Stability Board (FSB) will work with the Basel-based Bank for International Settlements (BIS), US and European Union regulators.
The draft includes measures to protect investors and stabilize trading by regulating the issuance, listing and market activity of digital assets. And although it is expected to expand to institutions, there are currently only four banks in Korea that can open virtual asset trading accounts: NH Nonghyup Bank (Bithumb, Coinone), Shinhan Bank (Korbit), and K-Bank (K Bank). Upbit), Jeonbuk Bank (Gopax),
The Transition Committee said:
We will strengthen the link between digital asset trading accounts and banks by expanding the number of financial institutions that provide virtual transaction real-name verification services.
In addition, the Korean authorities In 2018, the Financial Services Commission banned ICOs due to the spread of fraudulent projects, introducing a regulatory framework for non-fungible tokens (NFTs) and initial coin offerings (ICOs).
The new government is reviewing ways to create conditions for the distribution of securities-type coins, such as preparing guidelines for classifying virtual assets into securities and non-securities.
Although the leaked document is not the final version, it is noteworthy that the Yun government confirmed the draft.
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In addition, CEO Yoon Seok-yeol presentation On Tuesday, May 3, he announced that he would push for different taxation of cryptocurrency trading profits until the Digital Assets Framework Act (at least until 2024). The move is one of the other essential steps Yoon’s Presidential Transition Committee is working on to maintain its affinity for digital assets.
However, under the new cryptocurrency taxation rules, cryptocurrency investors will be subject to a 20% tax on cryptocurrency profits over $2,100 per year.
Featured image from Flickr, and chart from Tradingview.com