As a researcher with a keen interest in global financial markets and their regulatory landscapes, I find the stance of South Korea’s Financial Services Commission (FSC) towards digital assets intriguing. Having closely followed the evolution of Bitcoin and other cryptocurrencies since their inception, it’s clear that the FSC is adopting a cautious yet pragmatic approach.
In response to local requests for a Bitcoin reserve, the Financial Services Commission (FSC) of South Korea continues to exercise caution towards digital assets, following the U.S.’s optimistic approach towards cryptocurrencies.
In response to increasing calls for it, the chairman of South Korea’s Financial Services Commission, Kim Byung-hwan, is addressing the possibility of establishing a Bitcoin (BTC) reserve to maintain the liquidity of digital assets, as reported by Newsprime.
In a recent interview on November 24th, Kim stated that the idea of a national Bitcoin reserve is still quite far-fetched for now.
In Kim’s perspective, Kim sees Donald Trump, the newly elected U.S President, as having a more welcoming approach towards cryptocurrencies compared to the previous administration, which he considers as being conservative. This approach, as described by Kim, is part of what he calls an “encouraging and supportive policy.
While it’s true that he acknowledged this, he also made clear that the Financial Services Commission (FSC) of South Korea might require some time to scrutinize the digital asset trading market closely and assess the actions of other nations, particularly those considering emulating America’s approach to cryptocurrencies.
According to Kim, we’ll need to wait and observe the actions of the U.S., as it seems unlikely for the time being. However, our primary focus should be on finding ways to integrate this market into our current financial structure and building ties with it.
Additionally, he emphasized that funds should be directed towards the traditional stock market rather than the cryptocurrency market. Lately, Kim observed a significant increase in transactions involving virtual assets, with this trading volume outstripping both South Korea’s KOSPI and KOSDAQ stock market indices.
Kim stated that given the swift increase in value of these digital assets over a short span and the unpredictable nature of the market, it’s crucial to keep a close watch on any suspicious trading activities, particularly focusing on them,” explained Kim.
As a researcher, I’ve noticed that South Korean regulators are actively taking steps to strengthen and secure the crypto market. Notably, on November 20th, the Democratic Party of Korea disclosed their intention to implement a 20% cryptocurrency taxation starting from January 2025.
Under this new rule, a 20% national tax plus an additional 2% regional tax will be imposed on any cryptocurrency trading profits exceeding 50 million Korean Won (approximately $35,668).
At first, authorities suggested a 20% tax would be levied on profits surpassing 2.5 million won (approximately $1,800). But some prominent cryptocurrency exchanges contended that imposing such a 20% tax on the initial deduction of 2.5 million won would significantly decrease trading activity.
Read More
- POL PREDICTION. POL cryptocurrency
- Crypto ETPs hit $44.5b in YTD inflows amid Bitcoin surge
- AI16Z PREDICTION. AI16Z cryptocurrency
- Hong Kong Treasury says crypto is not a ‘target asset’ for its Exchange Fund
- Shiba Inu, Bonk, Pepe prices rebound: Beware of dead cat bounce
- The Vampire Diaries Nina Dobrev Reunited With Co-Stars To Recreate Throwback Photo, And I’m Not The Only One Loving It
- Blockaid new dashboard to track Web3 activity and threats
- PYTH PREDICTION. PYTH cryptocurrency
- SEN PREDICTION. SEN cryptocurrency
- US States charges ahead to adopt Bitcoin Reserve Legislation
2024-11-25 10:55