Cryptocurrency Tax Dispute in South Korea Reaches Boiling Point

South Korea’s crypto industry is currently in the midst of a significant dispute with the government as the topic of taxation continues to rage on. Following a possible delay in the government’s proposed tax code, a lawmaker has come out to declare that he won’t be backing down.

A Partisan Divide Over Tax Implementation

On Thursday, Naver News reported that Noh Woong-rae – a member of South Korea’s National Democratic Party – is looking to postpone the country’s crypto taxation bill until 2023. As the report explained, Noh said that the ruling Democratic Party of Korea will not go along with the Ministry of Finance’s plans to tax cryptocurrencies in 2022.

The lawmaker explained that it is challenging to get the data needed for taxation from cryptocurrency exchanges and peer-to-peer (p2p) platforms. Since the ideal infrastructure to support taxation isn’t ready, a deferral of the tax code is the only viable option.

Moves to delay the crypto tax code have been growing strong over the past few months. The proposed code will levy a 20 percent tax on income generated through crypto transactions, provided that the income exceeds 2.5 million won (about $20,000). The bill was set for passage and iomp[lementation on January 1, 2022, but the Democratic Party – which holds a slim majority in the Korean parliament – was reported to be working on a counter bill to postpone it until at least 2023.

The problem with the counter bill is that the Democratic Party only holds a slim majority in Korea’s parliament. So, getting the counter bill to pass will be slightly challenging.

It is even more complex since Finance Minister Hong Nam-Ki remains adamant in his mission to get the crypto tax law to pass in 2022. Hong himself is a part of the minority Peoples’ Power Party, and he has served in the position of Prime Minister before. So, he holds a great deal of political power.

Just yesterday, Hong reportedly asserted his desire to get the tax code passed next year, even rejecting an argument from the ruling party that a 2023 date would be perfect as it would coincide with the country’s capital gains tax on stocks.

September 24 Looms

On the issue of data collection, South Korea’s government appears to have a solution for that. In July, the government announced that crypto exchanges would need to register with the Financial Services Commission (FSC) before September 24 or face punishment. The new regulations will affect both South Korea-based exchanges and those that operate in foreign markets.

The release added that these rules also apply to exchanges that support the Korean language or whose marketing is geared towards the country’s citizens. Defaulting exchanges could face a fine of about $43,000, while their principal officers could spend up to five years in prison.

If exchanges do register with the government, they could gather information and develop a proper structure for taxation. Whether that taxation will come in 2022 or 2023 is yet to be seen.

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Author: Jimmy Aki

More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits

More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits

This could result in “huge investor losses” as users lose access to about 42 local altcoins. Currently, Polkadot (DOT), XRP, Cardano (ADA), and Cosmos (ATOM) are leading cryptos on the four top legit exchanges in the country.

The majority of the South Korean cryptocurrency exchanges are all set to be closed this month.

This will wipe out about 3 trillion won ($2.6 billion) as two-thirds of exchanges shut down, according to a report from the Finance Times.

Earlier last week, The Financial Services Commission (FSC), a financial monitoring agency in South Korea, issued a press release stating that they held an online meeting with “virtual asset service providers” (VASPs) to discuss the requirements related to the Sept. 24 deadline to register their businesses with the government.

“For VASPs that are planning to operate a virtual asset trading platform but are not planning to offer [Korean currency]-based or other fiat currency-based exchange services, the authorities advised them to terminate their fiat currency based exchange services without delay by the September 24 registration deadline.”

Those VASPs that are unable to meet the requirements and, as a result terminating their operation are advised by the authorities to “take measures to minimize damages” to their service users by informing their customers about the same with 7-day advance notice, giving them at least 30 days for withdrawal, and discard users’ personal information according to the relevant rules.

This could result in the shut down of about 40 of South Korea’s 60 crypto service providers, FT reported, citing “industry insiders and regulators.”

This could also force the closure of 42 sought-after coins, which crypto exchanges are expecting to trigger a “bank run” and result in “huge investor losses.”

Upbit, Bithumb, Korbit, and Coinone are the four top exchanges in South Korea that collectively control more than 90% of the country’s total cryptocurrency trading volume.

On Upbit, the largest crypto exchanges in South Korea which won’t be affected by the regulatory tightening, currently the most popular cryptos include Cosmos (ATOM), Tezos (XTZ), XRP, Serum (SRM), Polymath (POLY), Cardano (ADA), Polkadot (DOT), and Tron (TRX).

Bitcoin (BTC) accounts for 3.73% of the exchange’s total volume of just over $6.88 bln in the last 24 hours, the same as Tron, while Ethereum (ETH) has only 2.79% share, according to Coinmarketcap.

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Author: AnTy

South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps

SRM is currently the second most traded crypto on one of the biggest South Korean exchanges, Upbit, after Dogecoin. It is also trading at a premium on both Upbit and Bithumb, the latter also announcing the listing of SOL.

While Bitcoin and Ether are taking a breather under $45,000 and $3,000, respectively, other altcoins are busy pumping.

This especially holds for Ethereum (ETH) competitor Solana (SOL) and other coins in its ecosystem that have been pumping like crazy.

After months of ‘Solana Summer’ chanting by the SOL enthusiasts, finally, it is having a blast. Up 182% in the last 30-days, SOL is currently trading just above $70, having hit a new ATH at $80.12, according to CoinMarketCap on Wednesday.

SOL’s year-to-date gains currently stand at a whopping 3,706%, among the highest in the crypto space.

Amidst this uptrend, one of the biggest South Korean exchanges, Bithumb, announced the listing of SOL against KRW and BTC.

With SOL on an uptrend, decentralized exchange Serum built on Solana is also up 192% in the last 30-days. But trading at $7.87, SRM is still down 39.5% from its ATH four months back and has recorded only about 600% returns YTD.

This week, Huobi Global announced the listing of SRM against USDT and BTC.

SRM is currently the second most traded crypto on the biggest South Korean exchange, Upbit, after Dogecoin. Bitcoin doesn’t come until the 4th spot and Ether until the 9th as Koreans choose altcoins over the top coins.

SRM is currency trading at $8.28 on Upbit, while on Binance, it’s at $7.89, representing a kimchi premium of nearly 5%, according to Coinmarketcap.

While on Bithumb, which is listing SOL today, SRM is not among the top 10 most traded crypto assets but falls at the lower end of the top 20 and is also trading at a premium at $8.22.

“If the Koreans love SRM that much they’re gonna fucking love SOL,” tweeted trader @SmartContracter

South Koreans are simply busy trading XRP, DOGE, LUNA, ADA, ETC, AXS, and EOS.

AUDIO of Solana-based Audius streaming protocol has gone up over 110% in just a week after its partnership with TikTok.

Other Solana-based projects that are up in triple-digits in the last 30-days are COPE, Raydium (RAY), Bonafide (FIDA), MAPS, and Step Finance (STEP).

Besides SOL and the tokens in its ecosystem, another DeFi platform with a focus on stablecoins and with the backing of A-list investors such as Andreessen Horowitz and Galaxy Digital that is growing in value is Terra (LUNA), up over 100% in the past two weeks, hitting a new ATH today $33.22 and currently trading at just above $29.

LUNA’s YTD gains stand at 4,418%, nearing Dogecoin’s 5,163% gains which is yet again pumping as Dogecoin Foundation returns with its board of directors, including Ethereum co-founder Vitalik Buterin and Jared Birchall, manager of Elon’s family office, but is still down 59% from its ATH.

Currently, above $2, another Ethereum competitor Cardano (ADA), is also just less than 15% away from its ATH. Arweave (AR), Avalanche (AVAX), Thorchain (RUNE), and XRP have also enjoyed almost triple-digit gains in the last 30 days.

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Author: AnTy

Ripple Inks Partnership With South Korean Payment Provider, GME Remittance

Ripple Labs Inc has announced a partnership with GME Remittance, one of the leading companies in South Korea.

GME Remittance Joins RippleNet

The partnership would enable GME Remittance to use Ripple’s global financial network, RippleNet, to enable faster remittance payments to Thailand.

GME Remittance aims to connect with RippleNet customers to expand into additional remittance corridors across the region and globally.The collaboration was established through SBI Ripple Asia, a joint venture between SBI Holdings and Ripple.

By joining RippleNet, GME Remittance is now connected to Siam Commercial Bank (SCB), Thailand’s oldest bank and Ripple’s long-time partner.

According to the COO of GME Remittance, Subash Chandra Poudel, Ripple was chosen as a partner because of the benefits RippleNet offers.

Poudel said the team is already benefiting from RippleNet’s privileges. For instance, RippleNet tracks transactions at every step of the process, and this he said makes it easy to send money across borders with speed and transparency.

Emi Yoshikawa, Vice President of Corporate Strategy and Operations at Ripple, believes that partnerships with providers like GME Remittance would help deliver good customer experiences while accelerating their expansion into new markets.

With this move, GME Remittance joins an existing list of Korean financial institutions and money transfer companies who have pitched their tent with Ripple.

Ripple Increasing Adoption Of Services In Asian Region

Ripple has been particular about expanding and increasing the adoption of its services this year. To this end, the San Francisco-based firm has formed several partnerships, especially in the Asia Pacific region.

According to Ripple, the region is one of its fastest-growing areas, with transactions growing 130% year-over-year.

Last month, Ripple announced a collaboration with Japan’s SBI Remit and Philippines-based firm The partnership was formed to launch RippleNet’s first live On-Demand Liquidity (ODL) service implementation in Japan.

Ripple has also made other moves to expand its ODL service in the Asian region, like acquiring a 40% stake in cross-border payments firm Tranglo.

Since this partnership with Ripple, Tranglo has continued to expand its services significantly. The company recently received approval from the Monetary Authority of Singapore (MAS) to provide account issuance, domestic money transfer, and e-money issuance services.

Through the latest approvals, Tranglo will be able to enhance its payment function in different countries, including the Philippines, Indonesia, and others.

Ripple has also previously partnered with fintech company Novatti Group to expand the reach of its ODL service. Novatti was brought in to deploy the ODL Service via RippleNet to make instant, cross-border payments. The collaboration was also focused on improving remittances between Australia and the Philippines through Filipino-owned remittance service provider iRemit.

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Author: Jimmy Aki

69,000 Bitcoin worth $3.6 Billion Lost in South African Crypto Scam

It is suspected to be a money-laundering operation for international players. While South Africa’s FSCA is looking into Africrypt, they don’t have jurisdiction as crypto assets are not legally considered financial products.

A whopping 69,000 Bitcoin worth $3.6 billion has been lost in a scam by cryptocurrency investment platform, Africrypt.

A pair of South African brothers have been reported missing with the money. A Cape Town law firm, Hanekom Attorneys, hired by investors has reported the matter to the Financial Sector Conduct Authority (FSCA), the SA Reserve Bank, and the Hawks, an elite unit of the national police force.

Back in April, when the price of Bitcoin surged to an all-time high of about $65k, the elder brother, Africrypt Chief Operating Officer Ameer Cajee, said the company had been a victim of a hack. He then asked the client not to report the incident to lawyers and authorities, saying it would slow down the recovery process of the missing funds. Their notice from April 13 reads,

“We urge all clients to please be patient as we attempt to resolve the situation at hand. It is understandable that clients may proceed the legal route. but we ask clients to please acknowledge that this will only delay the recovery process.”

This made the investigators suspicious, and Hanekom Attorneys, along with a separate group, has started liquidation proceedings against the exchange.

“Africrypt employees lost access to the back-end platforms seven days before the alleged hack,” said Hanekom Attorneys.

According to the investigation, the pooled funds of the platform were transferred from South African accounts and client wallets to other large pools of bitcoin while using mixers to make them untraceable.

A Money-laundering Operation?

Founded in 2019, Africrypt’s website is now down, which used to state,

“Africrypt’s astronomical growth from a one-man operation running out of a bedroom, to one of Africa’s largest and most successful Al trading companies in only a few years.”

According to Darren Hanekom of Hanekom Attorneys, the fact that such a low-key crypto company had crypto assets of nearly R50 billion, it is unlikely all these funds came from South Africans, rather more likely be a money-laundering operation for international players.

Additionally, clients were requested to sign an investment agreement with Hong Kong-based RaeCreateWealth Limited, which also raises suspicions.

Customers were also required to deposit funds into an FNB account which would then be used to purchase BTC, often on Luno, and after that, the crypto would be broken up and mixed with other transactions.

Just last year, another South African Bitcoin trader, Mirror Trading International, collapsed in what was called the biggest crypto scam of 2020, involving 23,000 digital coins worth about $1.2 billion.

But Africrypt is three times bigger than Mirror.

In January this year, the daily value of crypto-asset trading exceeded 2 billion rands ($141 million) for the first time in the country.

While FSCA is looking into Africrypt, the regulator’s head of enforcement, Brandon Topham, said they are currently prohibited from launching a formal investigation because crypto assets are not legally considered financial products.

“We don’t have jurisdiction, but we are looking at complaints to see if there is a financial product hidden in there,” said Topham.

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Author: AnTy

Largest Korean Exchange Upbit Goes on a Delisting Spree Ahead of New Regulation

Upbit, the largest cryptocurrency exchange in South Korea, is removing several cryptocurrencies from its platform.

The exchange announced the removal of the KRW market pair of MARO, Paycoin (PCI), Observer (OBSR), Solvecare (SOLVE), and Quiz Talk (QTCON) on Friday.

MARO/KRW, PCI/KRW, OBSR/KRW, SOLVE/KRW, and QTCON/KRW pairs will no longer be available for trading after June 18, 12 PM (KST).

While BTC pairs won’t be affected, the exchange would not support the trading for GBP against these crypto assets either.

The exchange cited failure to meet internal standards for maintaining the KRW market pair as the reason for the removal.

The same day, the exchange flagged 25 crypto assets with an “investment warning.” These cryptocurrencies include Komodo (KMD), ADX, LBRY Credit (LBC), Ignis, D-Market (DMT), Einsteinium (EMC2), Twelve Ships (TSHP), Lambda (LAMB), Endor (EDR), Pixel (PXL), PICA, Red Coin (RDD), RINGX, Byte Token (VITE), ITAM, Syscoin (SYS), BASIC, NXT, BFT Token (BFT), Nucleus Vision (NCASH), Fusion (FSN), Flian (PI), Ripio Credit Network (RCN), PRO, and Aragon (ANT).

Business and team competency, public disclosure of information and communication, technical competence, and global liquidity for investor protection are the reasons given by the exchange for the investment warning.

Upbit will conduct a detailed review of these digital assets for a week to determine whether these cryptos should be delisted. The exchange said,

“If the reason for designation of a significant item is not fully clarified during the clarification period, Upbit will notify the end of the transaction support through a separate notice, and the exact transaction support end schedule will be announced through the transaction support termination notice.”

Cryptos designated as items of concern cannot be deposited after the time this notice is posted, added the exchange.

“Korean traders are calling it “Bloody Friday,” said DooWanNam, co-founder of StableNode and working with DeFi project MakerDAO. He further shared that this move is taken by Upbit because “the new regulation is incoming and it penalizes exchanges for having too many coins, especially shady ones.”

Additionally, there are rumors that “the exchange is watching the Financial Services Commission and is taking action against a project with conflict of interests.”

According to DooWanNam, these 25 cryptos flagged are “most likely” to be removed while noting some of these coins are popular Korean natives with high volume. He said,

“Many of them only have Upbit as the major exchange (or for some only exchange), so it will be for sure death unless they find an alternative exchange. Likely global ones this time.”

“While this will be bad for Korean coins, it can turn out to be good news for global retail coins like ADA and XRP.”

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Author: AnTy

South Korea’s FSC Looks to Rein In Cryptocurrency With Cross Trading Ban

Crypto regulation is gaining traction by the day, and the latest is in the Asian nation South Korea.

‘Bicycling’ Creates ‘Conflict Of Interest’

The top regulatory body of the South Korean financial market, the Financial Services Commission, is bringing to an end the practice of ‘bicycling’ by crypto exchange operators, per reports from a local news outlet.

According to the South Korean agency, this practice among Bitcoin exchanges in the country brings about a “conflict in interest.”

The term, which is closely related to a cross trade, allows an investor to both buy and sell the same security without recording it on the order book of the exchange. Although it is sometimes permitted on some occasions, the practice is generally frowned at.

The rule would see crypto exchanges will be no longer able to convert fees they receive in cryptocurrencies to the local Korean Won, thereby taking away a major source of revenue.

The FSC has said that this is to make sure that crypto exchanges do not manipulate prices.

Crypto operators have labeled the government’s position as aggressive to the nascent crypto space noting that this would force them to offer zero-commission crypto trades in the light of the changes.

However, the government is holding firm in its resolve, pointedly telling crypto exchanges to find a solution themselves. Providing details on why it was banning cross trading in the Asian country, the FSC said that large shareholders and business operators have more inside information than general investors, potentially making them a beneficiary in this practice.

Pointing out the effect of the rule on crypto businesses in the country, an industry official noted that since crypto fees can no longer be converted to the won, exchanges will have no choice but to sell them amongst themselves.

The official also pointed to the possibility of crypto exchanges creating an entirely different business organization catering to this need. However, stringent anti-money laundering practices will make this approach impossible to operate.

Seoul Set To Review Crypto Hacks

Aside from revenue stifling, crypto exchanges have also called the government’s attention to the challenges they will face in remitting their taxes. According to them, the new rule will make it difficult for them to pay their taxes.

Crypto exchanges in South Korea are billed withholding taxes, and with the new ban, their tax obligations can no longer be remitted in cryptocurrencies, noted an anonymous contributor.

To find a way around this, crypto exchanges will have to depend on custodial institutions to get a collateralized loan to run their businesses.

The FSC is also planning to look into issues surrounding crypto exchange hacks for the past five years, further leading to a wider regulation of the nascent space.

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Author: Jimmy Aki

Bitcoin and Ether Aren’t the Top Traded Crypto’s on Binance Or the Biggest South Korean Exchange

Bitcoin and Ether Aren’t the Top Traded Crypto’s on Binance Or the Biggest South Korean Exchange

DOGE is the one that is yet again leading the market, closing in on a $100 bln market cap, and is accounting for 41.55% of Upbit’s overall volume, which is also more than Coinbase Pro’s entire volume.

Yet again, DOGE has gone parabolic.

Hitting a new all-time high at nearly $0.69, DOGE is up over 140% in the past 7-days ahead of Tesla CEO and “Dogefather” Elon Musk’s appearance on SNL on May 8.

Dogecoin is currently the 4th largest crypto asset with a market cap of $85 billion.

The DOGE FOMO is getting real, which yet again ends up taking Robinhood down. “We’re currently experiencing issues with crypto trading,” said the retail trading app on Tuesday, yet again, before restoring the crypto trading an hour later.

Retail traders are all simply FOMOing in on the meme coin, as evident from the fact that Dogecoin is the most traded crypto asset on the leading cryptocurrency exchange Binance.

According to CoinGecko, DOGE/USDT on Binance is recording $14 billion in volume, accounting for 19.82% of the overall exchange volume. ETH/USDT and BTC/USDT account for only 7.74% and 6.42% of Binance’s total volume, only to be followed by DOGE/BTC yet again at 3.78%. ETH 9.79% Ethereum / USD ETHUSD $ 3,527.78
Volume 48.06 b Change $345.37 Open $3,527.78 Circulating 115.75 m Market Cap 408.36 b
3 h WallStreetBets Launches Blockchain-Powered Exchange Traded Portfolios, Ran Through A DAO 7 h Ether Retraces to Trade Under $3,400 But Several Catalysts Are Still Present to Sent it Higher 8 h Raydium (RAY) Alone Accounts for Nearly 90% of Solana Ecosystem’s TVL
BTC 8.56% Bitcoin / USD BTCUSD $ 57,504.68
Volume 68.9 b Change $4,922.40 Open $57,504.68 Circulating 18.7 m Market Cap 1.08 t
5 h JPMorgan’s Jamie Dimon Still Has ‘No Interest’ in Bitcoin Despite Growing Adoption 5 h Grayscale Partners with New York Giants, Becoming the Second Crypto Sponsor of an NFL Team 6 h NYDIG Partners with FinTech Giant to Enable US Bank Customers to Buy, Hold, and Sell BTC through their Existing Accounts

Meanwhile, as per Binance owned Coinmarketcap, ETH/USDT derivatives are seeing the highest volume at $20.4 billion, followed by DOGE/USDT derivatives recording $19.4 billion in volume.

While BTC/USDT derivatives are the third most traded pair with a $19.4 billion volume, DOGE/USDT spot trading is yet again seeing $15.8 billion volume.

Just like the global users of Binance, South Koreans are all-in on DOGE as well. Dogecoin is accounting for 41.55% of all the volume on the largest cryptocurrency exchange of the country, Upbit.

Trading at a premium of 9.75%, DOGE/KRW is at $0.7077, down from a $0.7142 high earlier in the day.

Compared to Coinbase Pro’s $9.3 billion total volume, DOGE/KRW alone on Upbit did $14.3 billion in the past 24 hours.

As we previously reported, South Koreans have been more involved in altcoins than Bitcoin and Ether. And this continues with Ethereum Classic accounting for nearly 19% of all Upbit volume and the highest 20.69% on Bithumb.

XRP, BTT, EOS, LINK, and LTC are other popular altcoins on Korean exchanges. XRP 19.50% XRP / USD XRPUSD $ 1.64
Volume 13.38 b Change $0.32 Open $1.64 Circulating 45.4 b Market Cap 74.4 b
8 h SEC Moves To Expunge XRP Holders From Ongoing Ripple Lawsuit With Latest Filing 9 h Bitcoin and Ether Aren’t the Top Traded Crypto’s on Binance Or the Biggest South Korean Exchange 2 d Due to Increased Demand, Social Trading Platform Firm eToro Now Supports DOGE
BTT 5.17% Blocktrade Token / USD BTTUSD $ 0.00
Volume 0 Change $0.00 Open $0.00 Circulating 55.75 m Market Cap 231.49 K
9 h Bitcoin and Ether Aren’t the Top Traded Crypto’s on Binance Or the Biggest South Korean Exchange 4 w South Koreans Are Trading XRP & BTT More than BTC and Ether 4 w Bitcoin Takes A Dive & Altcoins’ Drop Hard, But People Are Still ‘HODLing and Not Selling’
EOS 39.15% EOS / USD EOSUSD $ 8.75
Volume 8.56 b Change $3.43 Open $8.75 Circulating 953.13 m Market Cap 8.34 b
9 h Bitcoin and Ether Aren’t the Top Traded Crypto’s on Binance Or the Biggest South Korean Exchange 2 d Due to Increased Demand, Social Trading Platform Firm eToro Now Supports DOGE 1 w USDT Supply on Tron Surpasses Ethereum as Tether Hits $50 Bln in Market Cap
LINK 9.64% Chainlink / USD LINKUSD $ 49.49
Volume 4.91 b Change $4.77 Open $49.49 Circulating 419.01 m Market Cap 20.73 b
9 h Bitcoin and Ether Aren’t the Top Traded Crypto’s on Binance Or the Biggest South Korean Exchange 2 d Due to Increased Demand, Social Trading Platform Firm eToro Now Supports DOGE 4 d Binance Smart Chain (BSC) TVL Reaches $45 Billion, Catching Up Fast to Ethereum
LTC 18.31% Litecoin / USD LTCUSD $ 356.66
Volume 13.11 b Change $65.30 Open $356.66 Circulating 66.75 m Market Cap 23.81 b
5 h Grayscale Partners with New York Giants, Becoming the Second Crypto Sponsor of an NFL Team 9 h Bitcoin and Ether Aren’t the Top Traded Crypto’s on Binance Or the Biggest South Korean Exchange 2 d Due to Increased Demand, Social Trading Platform Firm eToro Now Supports DOGE

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Author: AnTy

Survey: South Korean Investors Welcome Controversial Crypto Tax Law

A new survey has revealed that a majority of South Korean investors support the proposed crypto tax law set to be unveiled next year.

53.7% Support Crypto Gains Tax

According to a recent survey sponsored by local television station YTN, many South Korean crypto investors support the government’s move to tax crypto gains.

The research carried on 500 respondents aged 18 years upwards by local research firm Realmeter showed that 53.7% of respondents support the proposed taxation regime scheduled to come into effect in Jan. 2022.

38.3% of responders feel it could hamper the sector’s growth, saying the move was biased.

The survey showed that respondents within the age bracket of 20 and 29 were strongly against the planned taxation more than any other age group.

47.8% of respondents in their 20s said they do not support crypto taxation, while 47.5% of respondents said it might be necessary to do so.

The data collated also showed that female crypto respondents were more supportive of the taxation scheme than their male counterparts.

Data collated by South Korean statesman Kwon Eun-hee showed that crypto investors in their 20s and early 30s were the most active participants with over 2.35 million confirming that they have traded digital currencies at least once in the top four crypto exchanges operating in the country: Bithumb, Upbit, Korbit, and Coinone.

But despite what may be a growing dissent against Seoul’s plans to regulate the burgeoning industry, Finance Minister Hong Nam-ki believes it’s only fair to tax capital gains on crypto transactions the same way other financial transactions are taxed.

But crypto stalwarts have called for a revision of the incoming tax law. The capital gains tax on virtual currency transactions has been pegged at 20% and will only affect trading profits that surpass the 2.5 million (about $2,234) mark.

South Korea’s Growing Regulations On Crypto

South Korea is determined to regulate its crypto sector. The Asian nation has been working steadily to bring the crypto industry under the purview of the government. It started by outlawing privacy tokens like Monero’s XMR.

It then extended its laws to comprise virtual assets service providers (VASPs), including cryptocurrency exchanges stipulating a hefty fine for any crypto company that fails to report suspicious transactions on its platform. It also said that failure to keep relevant customer data and separate management of customers’ transaction records would see them facing the full weight of the law.

These laws have since seen crypto exchanges like OKEx and Binance close shop in the country.

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Author: Jimmy Aki

International FX Exchange & Ripple Partner, Mercury to Boost Remittances in South Africa Using ODL

International FX Exchange & Ripple Partner, Mercury to Boost Remittances in South Africa Using ODL

Mercury’s international payments firm to utilize RippleNet On-Demand Liquidity (ODL) platform to ease remittance payments between the United Kingdom and South Africa.

On Tuesday, Ripple confirmed Mercury, which has been using the RippleNet ODL platform and its associated XRP digital asset since 2019, to reduce transaction times and fees to a minimum in South Africa. Mercury was added to the first cohort of South Africa’s Intergovernmental Fintech Working Group (IGFW), the inaugural fintech regulatory sandbox in the African state.

Mercury-RippleNet ODL was one of the six chosen projects for an inaugural 50 companies that applied to enter the sandbox. Of the six, Mercury is only one of two companies leveraging blockchain to enhance global remittances and payments in South Africa.

Consisting of top financial regulators such as South Africa’s National Treasury, the South African Reserve Bank, and Financial Sector Conduct Authority, IGFW has previously called for strict regulations to be put in place to curb unregulated crypto transactions.

In April 2020, IGFW stated domestic crypto transactions are accepted in the country but under strict adherence to the FATF “Travel Rule” recommendations. This gave rise to the regulatory sandbox –later in the year – the IGFW stating at the time,

“Payments using crypto assets will, in the interim period, be subjected to a regulatory sandbox approach.”

As a member of the sandbox, Mercury aims at enhancing the future of blockchain-based payments/ transfers to “cut the time and cost of sending money into and out of South Africa using RippleNet-ODL service.”

South African tax regulator, South Africa Revenue Authority (SARS), recently announced plans to audit crypto investors amidst the country’s rising demand for crypto.

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Author: Lujan Odera