According to techcrunch, one of the promises made by South Korean President Yin Xiyue to his voters is to implement a set of policies conducive to cryptocurrency in South Korea Yin Xiyue, who won in March and took office this month, said he would raise the threshold of cryptocurrency investment income to 50 million won. But he also faced some resistance
The Korean National Assembly Research Service Center (NARS) provides legislators with information and Analysis on legislative and policy issues, and classifies cryptocurrency as a virtual asset. The agency said that according to a notice issued last week, the tax threshold for income generated by virtual assets should be 2.5 million won and the tax rate should be 20%.
NARS believes that the tax rate is set at a level similar to financial investment income and "will not be heavily taxed". However, the threshold of its proposal is much lower than that sought by Yin Xiyue. Once passed, the new tax policy will take effect in 2023. The country's asset income tax system was launched in December 2020. Yin Xiyue also vowed to approve the first token issue banned as early as 2017.
South Korea is one of the most active cryptocurrency countries in the world. According to a study by South Korea's top financial regulator, by the end of 2021, the market scale will grow to 55.2 trillion won, and the number of users will reach nearly 5.58 million, accounting for about 10% of the whole Korean population.
South Korea's cryptocurrency market is booming, but it has also become isolated due to regulatory restrictions. This area is dominated by five major local exchanges - upbit, bithumb, coinone, korbit and gopax. On the other hand, it is difficult for foreign and smaller participants to meet the government's requirements for cooperation with local commercial banks.
Like other countries, the collapse of terrausd (UST), an algorithmic stabilization currency designed to use its sister currency Luna to maintain its peg to the US dollar, alerted regulators to fluctuations in the cryptocurrency market. According to local media reports, South Korean financial authorities will speed up the pace and promulgate digital asset regulations, including consumer protection. Korean cryptocurrency entrepreneur do Kwon is the founder of terraform labs in Singapore, which is the organization behind ust and Luna.
The Korean market has taken action to suspend or warn Luna that its value has collapsed to almost zero. According to coinranking, bithumb, which plans to delist Luna, currently has the seventh largest trading volume of the currency.