Korea's crypto regulation at crossroads as rules tighten, tax delay proposed
Korea’s cryptocurrency regulatory framework is reaching a crossroads, with rules tightening on one front while efforts are underway to delay taxation on investment gains. Financial authorities plan to expand the “travel rule” for crypto transactions to cover all transfers, requiring exchanges to collect and provide transaction information, while also tightening registration and screening…
Korea faces a turning point in its cryptocurrency regulatory landscape, with tightening rules on the one hand and proposals to delay taxes on investment gains on the other. Financial authorities intend to broaden the "travel rule" for crypto transactions to encompass all transfers, compelling exchanges to gather and share transaction details. Additionally, stricter registration and scrutiny measures are being implemented for crypto service providers.
Simultaneously, a bill has been introduced to postpone the planned taxation of crypto investment gains by three years, sparking renewed discussion about the optimal timing for such taxes. The Financial Services Commission, Korea's financial regulator, announced that an amendment approved by the Cabinet on Tuesday will extend the travel rule to encompass all crypto transfers, regardless of their value.
Previously, exchanges were only obligated to disclose transaction information for transactions worth at least 1 million won.
The amended rule eliminates the threshold, preventing users from dividing transactions into smaller amounts to circumvent the requirement.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
