The second-most-populous city after Seoul in South Korea, Busan is accessing the possibility to launch of a local cryptocurrency. The city authorities are planning to develop local crypto in partnership with BNK Busan Bank. The news comes amid the upcoming establishment of the South Korea blockchain regulation-free zone, for which Busan was selected as the preferred bidder along with its competitor Jeju Province.
A year after the Fair Trade Commission requested Bithumb and four other platforms to update their policy, the companies will now hold themselves accountable in the event of user funds being stolen. Increasing security for South Korean platforms is also necessary due to the increased risk of cyber attacks from neighboring North Korea.
South Korean government is worried that the cryptocurrency market could be overheating again. The meeting was led by Noh Hyeong-out, who is the Minister of the Office for Government Policy Coordination and the meeting’s participants included officials from the Ministry of Economy and Finance, the Justice Ministry and the Financial Services Commission. They’re also closely monitoring the crypto markets to ensure that South Korean investors are safe.
South Korea is one of the country that is actively adopting blockchain technology in various sector. Recently, the report has confirmed that 9 more blockchain companies are authorized into the country’s fintech regulatory sandbox. The approval was done by the South Korean Financial Service Commission (FSC) that approves in a total of 18 companies so far. Jo In-dong, head of the economic policy said, “Innovative start-up investment will be the cornerstone of corporate growth … in our society,”
The summary of research on central bank digital currencies (CBDC) was included by the Central Bank of Korea for its annual report. The Central Bank was reportedly conducting the research on CBDC and even considering the launching one even though the idea was later put aside. Apart from that, it also included the set of sets of blockchain-powered solutions.
Boscoin, Hashed and Bluewhale companies took part at the Blockchain Job Fair that happened in Seoul on 8th July. Job seekers expressed that the Korean blockchain companies are ‘cheap.’ The report revealed that the low salaries offered by the cryptocurrency firm are one of the deal breakers as the citizens mostly refuse to accept in a company that offers low wages.
The South Korean government has announced that non-conversion of cryptocurrency traders existing virtual accounts into real-name accounts will attract fine. This system would be implemented this month encouraging only real-name account transactions. It emphasized that those who refuse to comply with real-name identification will attract fines.
The spokesperson of Blue House in South Korea, Jeong Ki-joon, clarified that ‘there will be no cryptocurrency trading ban’ in a public press conference. He stated, “The cryptocurrency trading ban proposal introduced by Justice Minister Park Sang-ki to bring speculation with cryptocurrency market under control. The proposal will be discussed and changed by the task force”.
The South Korean government announced a bill is proposed to be implemented over the ban of anonymous cryptocurrency transactions. The cryptocurrency exchanges still permit trading but installing registration or signing up procedures such as the production of passport and proof of identity. As a shock-wave after broadcasting news over the ban, the cryptos tumbled in the market.
The South Korean government had stated that ‘corporate taxation is possible’ under the present law. The News1 Korea reported that, ‘at present it is concluded that the taxation of income tax, corporation tax and transfer income tax are possible in the case of virtual currency, while taxation of virtual currency is difficult in terms of value added tax’.