South Korean financial regulators move forward on crypto taxation and exchange oversight
October 8, 2021, 9:05AM EDT
1 min read
According to a report this week from the Korea Times, South Korea's financial leadership is fighting to implement crypto taxation on time.
The Finance Ministry has already pushed back a 20% tax on gains of over 2.5 million won ($2,100 USD) from October 1 to January 1.
Further delays threaten enforcement actions, according to Deputy Prime Minister and Finance Minister Hong Nam-ki. The opposition party, however, is still looking to push back on the January 1 start date, claiming that the existing taxation mechanism is not ready.
The local Financial Services Commission is also said to be looking into token listing and delisting practices. Chairman Koh Seung-beom is particularly concerned with the 4 trillion won ($3.35 billion USD) that dominant exchange Upbit has received in listing fees.
South Korea's crypto trading market has historically been significant in size, especially proportionate to the country's population. Regulators and lawmakers have been paying more and more attention to the area, especially leveraged trading. The South Korean branches of several major international crypto exchanges like OKEx and Binance have also left the country in the past year.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.