The South Korean government bitcoin transactions take new restrictions

The South Korean government bitcoin transactions take new restrictions


The South Korean government is considering a series of policy options to limit what it called the “overheated virtual currency speculation, including capital gains tax for traders.

Reuters first reported that the South Korean government policy coordination office (OfficeforGovernmentPolicyCoordination) released the December 13th statement, the Ministry of Justice (MinistryofJustice), the Financial Services Commission (FinancialServicesCommission), Korea Communications Commission (KoreaCommunicationsCommission), (FairTradeCommission), even bargain Committee of the Ministry of information and communication (MinistryofInformationandCommunication) to propose possible policies and measures of domestic encryption currency market, waiting for legislative approval.

This perhaps is not surprising, because of the huge volume of transactions in South Korea, Bithumb is one of the world’s largest single day trading volume of the stock exchange, here last month bitcoin transaction price first exceeded $10000.

Traders’ options include capital gains tax and banned foreign traders. Taxation is still unknown, the statement pointed out the private sector will solicit opinions and reference to other government measures, such as the IRS (InternalRevenueService) bitcoin assets tax levy.

If the measures, South Korea will be encrypted currency exchange network security audit, especially data theft and loss. But the daily trading volume of more than 10 billion won ($9 million 200 thousand) a day, the number of users more than million exchanges need to apply for the Korea Information Security Agency (KoreaInformationSecurityAgency) approved.

Government is also considering whether to ban ICO, which could strengthen the autumn of this year the Financial Services Commission (FinancialServicesCommission) to block chain financing ban. The statement also said the ban may include involving digital currency multilevel marketing.

The other measures discussed include combating illegal industrial land for bitcoin mining, miners get banned exchange account.

The official said, the government does not want the obstacles to block chain development, but restrictions on trading activities.

Class, we will continue to correct the adverse effects of virtual currency speculation, but we will adopt a balanced policy, to ensure that government measures will not hinder the blockchain technology development”.

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