The South Korean financial regulator has said its employees who deal with digital currencies must file reports on their personal crypto holdings, described by a spokesperson for the agency as a “reminder of the existing code of conduct.” According to local reports, the requirement will extend to the Korean Financial Services Commission (FSC) employees working to develop the country’s response to crypto regulation, overseeing developments in the technology, and those tasked with monitoring crypto transactions.
South Korean officials have until May 7 to file their returns.
Staff members have been given until May 7 to file their returns or face disciplinary action for breaching the code of conduct. Internal agency rules require employees to report any investments to the chairman of the FSC. They are also expected to avoid trading if they have received insider information. The developments follow a furor over an employee trading cryptocurrencies back in December 2017, where the individual made significant profits trading digital currency on information the regulator had yet to make public.
South Korea to implement crypto tax law next year.
Earlier this month, South Korea’s finance minister said that the government would start taxing capital gains from trading cryptocurrencies from next year as previously proposed. “It’s inevitable, we will need to impose taxes on gains from trading of virtual assets,” finance minister Hong Nam-ki said in a news conference. When asked, the tax law should be delayed until the government has proper oversight over the industry. According to the upcoming law, any annual gains of more than 2.5 million won ($2,253) from trading cryptocurrencies will be subject to a 20% capital gains tax.