All 200 Cryptocurrency Exchanges Could Be Shut Down Under New Regulation in South Korea, Regulator Warns – Exchanges Bitcoin News

The chairman of South Korea’s main financial regulator, the Financial Services Commission (FSC), Eun Sung-soo, has warned that all cryptocurrency exchanges in the country could be shut down. According to him, there are currently about 200 cryptocurrency exchanges in South Korea.

All cryptocurrencies can be closed in South Korea

At a meeting of the National Assembly’s Political Affairs Committee last week, the Korea Times quoted Chairman Eun as saying:

The country’s 200 cryptocurrency exchanges may be closed after September, when a special financial law takes effect.

Chairman Eun explained that cryptocurrency exchanges must be registered with the FSC under the revised Special Funds Act (Financial Transaction Specific Information Reporting and Use Act).

We are currently accepting applications for official registration until the deadline, but no exchange operator has yet submitted an application, he said. Since none of these businesses are registered, he warned that they could suddenly close in September.

The revised Special Fund Act entered into force on 25 January 2009. It will enter into force on 24 March and its provisions will be implemented after a six-month delay. The amendment requires cryptocurrency providers, including cryptocurrency exchanges, to meet requirements such as. B. obtaining an Information Security Management System (ISMS) certificate and opening accounts with real names. The Financial Services Commission is responsible for registering cryptocurrency exchanges that meet these requirements.

Chairman Yeung noted that cryptocurrencies are not currencies and pointed out that the government has repeatedly warned investors that their sharp price fluctuations are dangerous.

In addition, the FSC chairman said that profits from investments in cryptocurrencies will be taxable from next year. The Department of Strategy and Finance announced in February that starting in 2022, income-generating transactions involving cryptocurrencies will be classified as other income and taxed separately at 20%.

Last week, the tax office of Seoul’s capital government seized about $25 million worth of cryptocurrencies from hundreds of cryptocurrency investors with back taxes.

What do you think of the FSB chairman’s warning? Let us know your comments in the section below.

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