Bitcoin Legislation in Korea

Bitcoin Legislation in Korea

In Korea, laws concerning cryptographic currency such as Bitcoin and Ethereum are under development.

Law maintenance of encryption currencyPark Jeong-jin, a member of the ruling and opposition parties, said the government would revise three laws this month in order to build a regulatory framework for cryptocurrency, according to South Korean Herald report.

One of the bills is expected to revise an existing electronic finance transactions law and to consider mandating regulatory approval of encrypted transactions. This means would place traders and any persons engaging in crypto transactions would be under the authority of the Korean government.
The proposal states protection against the value of the nation-led cryptocurrency is unnecessary; however, it is necessary to deem changing digital currency to other existing currencies impossible. It also points out that the national economy may be disrupted by the collapse of the digital currency bubble.

Cryptographic currency transactionThey are also working on income and corporate tax laws that financial authorities can place on cryptocurrency transactions. As of 2017, Korea is regarded as one of the world’s largest bitcoin trading markets, with nearly 8.5% of the world’s bitcoins traded in the Korean market – falling only approximately $150 short of the American market in terms of 24 hours transactions.

According to a CCN report from late 2016, 国’s Financial Services Committee (FSC) will establish a Digital Currency Task Force this year to introduce cryptocurrency industry regulations.

In Japan, a “draft legislation to revise part of the banking laws to respond to environmental changes such as the dissemination of information and communication technologies” (shortened to Virtual Currency Law) was proposed in April 2017. Cryptocurrency was defined as a new payment mechanism, but it is not considered a legal currency. Currently, cryptocoins are treated as things in Japan, but not recognized as fiat currency.

In China, which is home to at least 80% of bitcoin trade, bitcoins are used as a means of circumventing government control. Bitcoin transactions by financial institutions were banned in 2013, but recently there has been a jump in incidences of informal statements approving of bitcoin. Naturally, the apparent instability means that the regulatory circumstances in China are getting a lot of attention.