South Korea’s Government Hinted about Regulating Cryptocurrency in Country

The elected government in South Korea launched a crypto task force, this has injected fresh hope for the crypto sector in South Korea. The newly created crypto task force is talking hyperactively about the industry trends, and the need to “legalize” cryptocurrency trading in a groundbreaking fashion. Despite the fact that Financial Service Commission (FSC) in past had taken a strict stance against policing cryptocurrency — the ruling party seems to be thinking otherwise.

Earlier this summer, a couple of senior government ministers briefed the press about the need for a staunch “Crackdown” against “agitated” crypto trading.  The FSC triggered anger when Chairman FSC Eun Sang-soo publicly spread the word around the ruling class. He said that the ruling class is responsible for “keeping people away from the dangers of crypto and other digital currencies investments.”  These words led to a stream of petitions demanding Eun Sang- Soo’s resignation.

The ruling party, which aims to win polls in the upcoming general elections 2022, has become aware that in order to win the hearts of young people, crypto-friendly legislation is mandatory.

This is because young voters are keenly interested in crypto trading. In recent times where the real estate sector is almost closed, the stock market is progressing sluggishly. To make things worse, the pandemic has created a job crisis. Now, the government cannot afford to threaten the crypto sector, when all other income heads for the government are closed.

Hence the ruling party has decided to normalize the rules and regulations regarding the crypto trade. The government will soon propose legislation on the matter. Per daily, as well as News1 and EToday, the task will include the members who previously worked on regulating South Korea’s first-ever crypto-specific legislation in 2019.

In another development, the South Korean parliament with consensus approved the bill to begin taxing crypto. The tax will be charged at a flat rate of 20%. Taskforce is planning to introduce a system to grant crypto-related firms and traders the same kind of benefits, privileges, and government protection. These are the same privileges enjoyed by other companies in the country. As per the current standings of cryptocurrency firms they lie in the lowest class of business enterprise.

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