South Korean officials take new restrictions on Bitcoin transactions

nBankruptcy Commentary: A recent statement by the South Korean government’s Policy Coordination Office could limit bitcoin transactions, including banning miners from acquiring exchange accounts and mining land, levying capital gains taxes, and banning ICO financing. Once the relevant measures are introduced, the Korea Exchange may be subject to audit and strict trading restrictions. However, the government said it will not hinder the development of blockchain technology.n
nTranslation: Annie_Xun
The South Korean government considers a series of policy options designed to limit what it calls “overheated virtual currency speculation,” including a capital gains tax on traders.n
Reuters first reported that the Office for Government Policy Coordination issued a December 13 statement that the Ministry of Justice, the Financial Services Commission, the Korea Communications Commission, The Fair Trade Commission and the Ministry of Information and Communication have proposed possible policy measures for the domestic encrypted currency market pending legislative approval.n
The move may not come as a surprise, given the huge trading volume in Korea, Bithumb is one of the largest exchanges in the world with its single-day trading volume, which first crossed the $ 10,000 exchange rate last month.n
Options for traders include capital gains tax and bans on foreign traders. The issue of taxation is still unknown. The statement said it will seek private-sector advice and reference other government measures, such as the Internal Revenue Service, which charges property taxes on Bitcoin.n
If the measure is passed, Korea Cryptocurrency Exchange will be subject to cybersecurity review, especially data theft and loss. And exchanges that trade over 10 billion won ($ 9.2 million) daily and those with more than 1 million daily users require approval from the Korea Information Security Agency.n
The government also considered whether to ban the ICO, a move that could reinforce the ban on blockchain financing this fall by the Financial Services Commission. The statement also said it may include a ban on multi-level marketing involving digital currencies.n
Other measures to be discussed include cracking down on illegal use of industrial land for bitcoin mining and banning miners from acquiring exchange accounts.n
Officials mentioned that the government does not want to block the development of the blockchain and only restricts the trading activities.n
n”Category, we will continue to correct the side effects of virtual currency speculation, but we will adopt a balanced policy to ensure that government measures will not hinder the development of technologies such as the blockchain.”n

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