KBA to Bring 'Order' to Korea's Crypto Exchanges

Korean Blockchain Association has proposed a self-regulatory framework
17 April 2018   740

The Korean Blockchain Association (KBA), founded in 2017 by South Korean companies from the blockchain industry, proposed setting rules for self-government within the association to set a standard for the entire industry of crypto exchanges.

Among other things, the minimum authorized capital of exchange member is proposed to limit 2 billion Korean won (1.8 million dollars). In addition, the members of the association will have to provide financial and audit reports.

These rules will be applied to 14 South Korean cryptoexchanges, including Bithumb, Coinone, Gopax, OKCoin Korea and Huobi Korea. In addition, as the South Korean edition of Yonhap writes, when the rules come into force, it will also oblige members of the association to store data on user transactions for five years. In addition, the exchange must have built-in systems that identify and report suspicious transactions.

These rules are part of a broader initiative to improve anti-money laundering measures launched by the South Korean Financial Services Commission.

We will establish the order of the domestically cryptographic [exchange] market through self-regulatory review. By providing a safeguard for the protection of users, we will contribute to ensuring the asset safety.
 

Jeon Jae-jin

Chairman, Korean Blockchain Association

Measures to self-regulate the industry of Korean crypto-exchanges are consistent with the intentions of some local exchanges to adhere to a more conservative approach to new crypto-currencies and ICO.

So, according to the proposed rules, within each exchange a committee will be formed to review the listing of new tokens issued through the ICO. It is also planned to introduce ethical codes to prevent insider trading.

Representatives of the OKCoin Korea exchange informed that their company "is preparing to fulfill all the criteria and full compliance with the new KBA rules."

We are definitely welcoming new self-regulation measures and thinking positive on this active movement to make reliable blockchain ecosystem. As part of this effort, Coinone has already set its internal organization and system to make transparency in trading of cryptocurrencies.
 

Coinone Rep.

According to Yonhap, the rules will be finalized by the end of next month. Each member of the association must provide the necessary documents before June 8.

Bithumb Filed Appeal Against Korean Tax Office

Looks like the korean exchange doesn't really want to pay an additional tax worth $67 000 000
16 January 2020   119

The South Korean cryptocurrency exchange Bithumb has filed a complaint against the National Tax Service (NTS) because of the requirement to pay additional taxes for the transactions of its foreign customers.

The company claims that cryptocurrencies do not have an official status in the territory of South Korea, which is why the authorities cannot have sufficient reasons to levy any taxes.

The tax court will have to decide within 90 days whether to retain or withdraw from Bithumb the obligation to pay the $ 69.1 million tax that was assigned to it by NTS in November. The Office declares that the withdrawal of income from accounts in Korean won by foreign residents is a taxable event. It is assumed that the exchange itself had to withhold tax from its foreign customers.

We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.

 

Bithumb

 The ministry has its own position on this issue.

Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.

 

Choi Hwoa-in

Adviser to Financial Supervisory Service

According to the expert, the NTS maneuver is well thought out and aimed at starting to levy a tax on income that is currently not taxable.

We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal.

 

NTS

Earlier, Bithumb was ordered to pay an additional $ 67 million in tax.