South Korea Cryptocurrency Trading Bill
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A South Korean lawmaker Kim Sun-dong, who is also a member of the National Assembly’s Political Committee, has reportedly introduced a bill promoting cryptocurrency trading. The concerned bill has stressed upon promoting cryptocurrency exchanges in the country. It also proposes to establish a committee for promoting and supporting cryptocurrency trading in South Korea.

South Korea Cryptocurrency Trading Bill Proposals

National Assembly’s Political Committee has announced that South Korean lawmaker Kim Sun-dong has introduced a South Korea cryptocurrency trading bill called “Digital Asset Trading Promotion Act”.

Reports say the concerned cryptocurrency trading bill includes a comprehensive plan to establish a definitive guideline to promote and develop virtual currency exchanges. Besides, the bill proposes a reduction and exemption of taxes, possible measures against damage due to hacking, blockchain technology promotion and development, and market disturbance promotion.

South Korea Cryptocurrency Trading Bill

The “Digital Asset Trading Promotion Act” bill defines “virtual content with an apparent value such as online money, points, game items, and virtual currencies as digital assets”. It also says:

Those who want to operate a digital asset trading business should have more than 3 billion won [~$ 2.66 million] in the capital, enough manpower, computerized systems, and physical equipment to be approved by the Financial Services Commission [FSC].

What are the Comments of Kim Sun-dong?

Kim Sun-dong has reportedly emphasized on dedicating a law for the promotion of cryptocurrency based businesses so that companies don’t leave South Korea. While making this point, he cited the instance of Bithumb leaving the country. Kim highlighted the fact that at the beginning of 2018 a large percentage of stock market transactions in South Korea were cryptocurrency transactions. However, the government’s anti-crypto attitude led Bithumb (one of the largest cryptocurrency exchanges in the country) to be sold to a consortium based in Singapore.

While making his proposals at the concerned bill, Kim told the committee that other developed countries such as Japan and the US have already taken major steps in institutionalizing cryptocurrency trading. While Japan has completed their legislative procedures for institutionalizing cryptocurrency trading, the United States has taken a step forward by allowing trade of cryptocurrency derivatives.

 

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