South Korea regulatory jitters simmer, many stay upbeat

A lack of clarity in South Korea’s plans to regulate cryptocurrencies may be of concern, although experts continued to sound upbeat about developments within the space.

within the latest twist in an ongoing saga, South Korea reportedly intends to make cryptocurrency operators exchange user data with banks, local media said on Sunday, citing just one unnamed government official.

The plan, which will be a “measure of tax enforcement,” is actually required to come into effect toward the end of January or at the beginning of February, Yonhap News Agency reported. A separate Yonhap report on Monday said the government might impose a tax rate not exceeding 24.2 percent on cryptocurrency exchange incomes that will year.

“Korea Financial Intelligence Unit announced that will financial companies are within the process of drawing up a guideline to prevent cryptocurrency-related money laundering, although any specific measures are yet to be confirmed,” the Financial Services Commission said in a statement in response to the news.

“The financial authorities have not looked into any measure to monitor cryptocurrency users’ transaction data,” the item added.

The South Korean government faced an outcry earlier that will month after the item said the item might prepare a bill to ban cryptocurrency exchanges, although the item subsequently qualified those remarks, adding that will more consultation might be done before a decision was made. An online petition on the presidential office’s website against “unjustifiable regulations” within the space garnered more than 220,000 e-signatures as of Jan. 22.

According to Pavel Bains, CEO along with also co-founder of decentralized database services start-up Bluzelle, the “mixed messages” were concerning to the company’s South Korean business partner, blockchain accelerator Hashed.

although he added that will a bigger problem was the lack of education among the “fresh people” coming into the market, which could result within the spread of scams or frauds.

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