According to the Korean Herald report, the executive power in Seoul announced Friday that the task had been assigned to the Financial Supervisory Service, one of the country’s financial regulators. The agency will be monitoring closely the implementation of previously introduced regulatory measures, the newspaper elaborated. These include the Act on Reporting and Using Specified Financial Transaction Information. The latter imposes certain restrictions on cryptocurrency exchanges operating in South Korea.
The Korean government has also delegated powers to other departments.
The Korean government has also delegated powers to the Ministry of Science and Information and Communication Technology to steer the development of the blockchain industry in the country. The department has already dealt with issues related to the crypto space. Earlier in May, Korean media reported that the ministry has found and blocked over 30 phishing websites trying to obtain login details from crypto exchange users in the past three months. The South Korean government has been working on crypto regulations for a long time.
South Korean government plans to tax crypto gains.
South Korean authorities have also maintained their commitment to impose income tax on gains from cryptocurrency trading. Crypto investors who make 25 million won ($22,400) or more will be required to pay 20% on their profits during next year. However, not all Koreans have welcomed the proposal. Another development concerns crypto trading platforms working in the Asian country. The South Korean government has decided to ban cryptocurrency operators from direct engagement in providing transactions or brokerage services. Korean ministers say the move aims to enhance transparency in the operation of digital asset exchanges. Seoul’s latest decisions add to a string of regulatory announcements that have negatively affected cryptocurrency markets. Earlier, China announced a crackdown on crypto mining activities.