Oops!Something went wrong.Please try again later.Muyao ShenMay 2, 2021, 6:43 PM·4 min readOops!Something went wrong.Please try again later.
South Korean lawmaker Kim Byung-wook said he believes the crypto industry is unique and different from traditional finance, and thus requires a separate regulatory framework.
That isn’t a new refrain for Kim, who has repeatedly advocated for crypto-specific legislation. The government’s current method of regulating Korea’s cryptocurrency industry is by applying anti-money laundering (AML) laws and know-your-customer (KYC) protocols to crypto exchanges.
Crypto is in a gray area. Exchanges will be monitored by the country’s financial regulator, the Financial Services Commission (FSC), but the government doesn’t recognize bitcoin and other cryptocurrencies as financial assets.
The government will begin collecting taxes on crypto profits starting Jan. 1, but because crypto isn’t recognized as a financial asset, it will be taxed as income. All annual profits from crypto trading exceeding 2.5 million won ($2,252) will be taxed as “other income” at a rate of 20%.
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