South Koreans social activity these days is a crypto investment and more importantly Bitcoin adoption. Amongst its neighboring countries, South Korea is the top crypto user of Asia. In fact, South Korea has a daily crypto trade volume exceeding US$ 7 Billion plus which is better than many top cryptos using states of the world. But South Korea’s crypto industry is in competition with the crypto industry of neighboring
If there is an apparent crypto trend going on in Japan, then immediately the same trend is initiated and followed in South Korea. Similarly, if there are any crypto-related policies being implemented in either company, the same is mimicked in the other country.
Japan recently pointed out that tax evaders in the country are increasing rampantly. It was stated by the Japanese Government that their growth needs to be curtailed otherwise irreparable injury and loss
will be caused upon the exchequer. It was further noted by the Japanese Government that the tax avoiders are using crypto as their scapegoat.
Thereafter the Japanese Government came with a plan and decided to incorporate fresh crypto regulations. It was intended by Japanese Authorities that a law should be put in place which is prepared in conformity with the present crypto requirements. A law that is equipped to allow the Government to seek knowledge of how much and who owns cryptocurrencies said the Government.
When the Government in South Korea learned that Japan is trying to incorporate crypto regulations, South Korean Government too, adopted Japan’s idea of crypto regulations. It was later on stated by the
South Korean Government that the tax authorities are aware that a large group of tax evaders is existing in the country. These individuals have been using crypto as a shield to hide their tax evasions, said the Government.
Now the South Korean Government has officially announced and implemented new crypto rules which have been incorporated through an Act. The Act has been named as “Specific Financial Information Act”,
which is the major law, and the rules to be made thereunder. This is the first crypto law in South Korea that would be enforced upon the local and foreign crypto trading platforms conducting businesses in
South Korean. The purpose of the new law is to ensure that crypto trading platforms are able to comply with anti-money laundering policies that have been adopted by South Korea.
Furthermore, South Korean authorities would have the power to acquire customer-related data and information from any crypto trading platform of South Korea. Similarly, the trading platform would be liable to submit such information as and when demanded by the concerned and relevant authorities. The information has been sought in helping the state functionaries to point out and determine who is a genuine taxpayer and who is evading tax.