Enforcement of South Korean virtual assets law prescribed in decree

The details of enforcing the Protection of Virtual Asset Users Act are not contained in the bill, which comes into force July 19.

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South Korea labels mass-produced NFTs as virtual assets

NFTs considered as virtual assets are eligible to receive interest when deposited to exchanges according to the FSCs guidelines published in 2023.

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US ETH ETF approval pressures Korean regulators

Unlike their U.S. counterparts, Koreas FSC and FSS have been cautious about allowing crypto trading on traditional securities markets.

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Vanuatu Finally Approves its Long-awaited Crypto Regulations, which Introduce Stricter Rules

The island nation of Vanuatu has enacted new laws that regulate the cryptocurrency industry on the island, introducing licensing standards for local crypto businesses. These crypto regulations are described as ‘strict’ in nature and are designed to prevent those who could use smaller countries as a ‘shophouse’ for fraudulent activities. The Vanuatu Financial Services Commission […]

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Taiwan's Financial Regulator Cautions Investors Amidst Crypto Volatility

Taiwan's FSC urges public caution with virtual asset trading due to extreme price volatility, highlighting the speculative nature and risks involved. (Read More)

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Crypto lender Delio warns normal operations in jeopardy after asset seizures

The South Korean crypto lender has had to halt certain interest payments amid a recent investigation resulting in the company and its customers' assets being seized.

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Bank of Korea given right to investigate local crypto firms: Report

The South Korean central bank will be able to access crypto transaction data from exchanges operating in the country.

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Taiwan’s Financial Supervisory Commission Set to Regulate Country’s Virtual Assets Industry

Taiwan’s Financial Supervisory Commission is set to be announced as the body that will oversee and regulate the virtual asset industry. According to a report, the collapse of crypto exchanges like FTX prompted Taiwanese officials to seek ways of protecting users against similar events should they recur. Virtual Asset Industry’s Self-Regulation According to Taiwanese government [...]

The post Taiwan’s Financial Supervisory Commission Set to Regulate Country’s Virtual Assets Industry appeared first on Crypto Breaking News.

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South Korea Starts To Define Cryptocurrencies As Legislation Approaches

South Korea is on its remarkable journey concerning blockchain developments and legislation. On Monday, South Korea’s Financial Service Commission (FSC) noted that the blockchain-based tokens [...]

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New Digital Assets Bill: South Korean Officials To Impose More Control Over Crypto Exchanges

South Korean officials are bringing out proposed amendments to the Digital Assets Bill in an effort to impose more control over cryptocurrency exchanges.  As reported by News1 Korea that to prevent another FTX disaster, Rep. Yoon Chang-Hyun, a People’s Power party member, drafted a proposal for an amendment that will increase the power of Financial […]

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South Korea probes crypto exchanges for local tokens

Korean Financial Intelligence Unit (KoFIU) launched a probe into crypto exchanges in relation to listing their in-house, self-issued tokens. While Korean crypto exchanges are barred from issuing native tokens, KoFIU's probe into the same is to ensure regulatory adherence for investor's safety. Initial investigations revealed that all crypto exchanges performed lawful operations across South Korea. (Read More)

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Large Securities Companies in South Korea Plan to Launch a Crypto Exchange in H1 2023

<p>Some of the largest securities firms in South Korea are on schedule to launch a virtual asset exchange in H1 2023, led by the Financial Investment Association. According to local news, the financial firms have applied for government approval to initiate the exchanges.</p><p>An official from one of the securities companies said: "The discussions necessary for the establishment are currently being finalized internally.</p><p> "Details could be made after the government announced in the fourth quarter of this year that included provisions of the virtual asset law and deregulation."</p><p>The President of South Korea, Yoon Suk-yeol is dubbed as a crypto-pro President. Yoon, a former prosecutor said vowed to allow initial coin offerings (ICO), which will enhance South Korea's position among the crypto-friendly countries.</p><p>A member of the People Power Party said that profits of up to $40,000 will not be taxed. Nevertheless, airdrops may still be subject to gift tax, which ranges between 10% and 50%.</p><p>Plans to impose 20% on crypto profits were delayed to 2025. Cryptocurrency trading regulations may be introduced in 2023 under the Digital Asset Basic Act.</p><p>The Digital Assets Framework Act</p><p>The securities companies that are planning to launch an exchange are <a href="https://www.financemagnates.com/fintech/samsung-enables-us-stocks-trading-during-south-korean-hours/" target="_blank">Samsung Securities</a>, Mirae Asset Consulting, NH Investment & Securities, Shinhan Financial Investment and KB Securities.</p><p>KB Bank hinted at the beginning of the year its intention to enter the digital assets markets:</p><p>'We plan to prepare for the preemptive launch of related products through domestic and overseas digital asset market research. Considering the speed of adoption of virtual assets in major countries, the company aims to launch products as quickly as possible after deregulation in Korea [led by Yoon].</p><p>'Hong-gon Kim, head of KB Asset Management’s Index Quant Management Division, said, “We will launch a virtual asset-themed equity fund, etc. as soon as possible." Periodicals will also be published.'</p><p>The Digital Assets Framework Act will differentiate between tokens that are considered as securities (STOs) and non-security tokens including NFTs.</p><p>The FIU Took Action against 16 Crypto Exchanges</p><p>Although the South Korean government is more open to crypto, it does not necessarily mean exchanges can operate without a required license.</p><p>The Financial Intelligence Analysis Unit (FIU), which is operating under the Financial Services Commission (<a href="https://www.financemagnates.com/cryptocurrency/regulation/taiwan-bans-cryptocurrency-purchases-with-credit-cards/" target="_blank">FSC</a>), discovered 16 exchanges that are violating the Special Payment Act.</p><p>An FIU official explained the Special Payment Act: "Undeclared virtual asset operators are not adequately equipped with the Information Security Management System (ISMS), which is a reporting requirement under the Special Payments Act and may be exposed to risks such as leakage and hacking of personal information, and may be exploited through money laundering channels."</p><p>The 16 crypto exchanges that have been providing services to Koreans without a required license are:</p><p>KuCoinMEXCPhemexXT.comBitrueZB.comBitglobalCoinWCoinEXAAXZoomEXPoloniexBTCEXBTCCDigiFinexPionex</p><p>The FIU warned the exchanges in July 2021 that they are subject to declaration, however, no declaration has been provided.</p><p style="" class="text-align-center">source: <a href="https://www.kofiu.go.kr/eng/notification/notice_view.do" target="_blank" rel="nofollow">IFU</a></p><p>As a result, the IFU requested the Broadcast and Communications Commission and the Korea Communications Commission to block access to their websites.</p><p>Furthermore, the IFU wishes to halt credit card companies from providing services to these exchanges, assuring unlicensed crypto companies will be unable to process credit card transactions.</p> This article was written by Matti Williamson at www.financemagnates.com.

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South Korean legislature considering new licensing system for crypto

Regulators in South Korea have issued a new report that offers a bevy of recommendations for how to properly govern the country’s crypto industry.

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South Korea's new president delays crypto taxes in favor of consumer protections

The country’s president elect is proving his crypto savvy by declaring there will be no tax on crypto investment gains until legislation can ensure consumer protections.

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Gibraltar Introduces New Legislation to Combat Insider Trading and Market Manipulation

The Gibraltar Financial Services Commission (GFSC) has updated its regulatory guidelines for the digital currency ecosystem to include a 10th clause that addresses insider trading and market manipulation. (Read More)

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South Korea FSC Has announced Deadline for Over 60 Crypto Exchange

South Korea FSC has set a deadline for over 60 crypto exchanges. Crypto exchanges need to partner with south Korean

The post has appeared first on thenewscrypto.com

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Crypto Exchanges Weep as FSC Deadline Approaches

The deadline for South Korea’s strict new regulations is almost here. The FSC is not budging on extending the deadline.

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Huobi Korea Cuts Support as the FSC Cracks Its Whip

Crypto exchanges have about a month left to meet South Korea’s regulations. Failing to do so would mean closing up

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FSC Implements New Legislation for Crypto Market in South Korea

The South Korean government has taken decisiveaction to safeguard the interests of cryptocurrency investors with theenactment of the Virtual Asset Users Protection Act, announced by the FinancialServices Commission (FSC) today (Wednesday).

Financial Services Commission Unveils VirtualAsset Users Protection Act

The new law, slated to take effect on July 19,2024, marks a significant step in regulating the cryptocurrency market in SouthKorea. Aimed at curbing market crimes and enhancing transparency, thelegislation prohibits the use of undisclosed significant information incryptocurrency transactions, as well as activities related to marketmanipulation and illegal trading.

Under the provisions of the Virtual Asset UsersProtection Act, severe penalties await violators, including fixed-termimprisonment exceeding one year or fines ranging from three to five times theamount of illegal profit. Particularly, individuals who amass more than $3.8million from illicit cryptocurrencytrading schemes may face life sentences.

Moreover, the FSC emphasizes itsauthority to supervise and inspect virtual asset business operators to ensurecompliance with the newly enacted legislation. This includes the investigationand enforcement of measures against unfair trading practices.

#CryptoNews: South Korea's Financial Services Commission (FSC) has proposed new legislation to its financial regulations that would give the watchdog more authority over the local crypto sector.https://t.co/hiQ7B8NEVt

Terraform Labs Collapse Sparks South Korea'sRegulatory Response

The impetus for the Virtual Asset UsersProtection Act stemmed from a significant industry upheaval involving TerraformLabs and its Founder, Do Kwon, a South Korean national. Following the collapseof Terra in May 2022, which wiped out more than $450 billion from the market,South Korean lawmakers moved swiftly to address regulatory gaps and strengtheninvestor protections.

Kwon, currentlyfacing extradition to the United States, faces multiple charges, includingcommodities fraud, securities fraud, wire fraud, and conspiracy to defraud andengage in market manipulation.

Earlier, the FSCunveiled draft regulations mandating that companies engaged incryptocurrency holding or trading disclose transaction details to the financialregulator, as reported by FinanceMagnates.

Outlined in the draft rules, the FSC stipulated that companies must provideinformation regarding the volume of digital assets held, specifics regardingthe assets' characteristics, and details about their business operations.Moreover, the proposed regulations necessitated companies to reveal profitsgenerated from cryptocurrency activities alongside the market valuation oftheir holdings.

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South Korean Companies Required to Disclose Crypto Holdings under New Rules

Companies holding or trading cryptocurrencies in South Korea will be required to disclose information about their transactions to the financial regulator, according to the draft rules released by the country's Financial Services Commission (FSC) yesterday (Tuesday).

According to the rules, the FSC said that the companies would be required to share information about the amount of digital assets they hold, the characteristics of the assets, as well as their business model. Additionally, the draft rules require companies to disclose profits from cryptocurrencies and the market value of their holdings.

Transparency and Accountability

The new measures, according to the FSC, aim to improve transparency in accounting for digital assets held by corporations. Additionally, the regulator will divulge profits from the sale of virtual assets. However, the cost incurred in developing the assets is not recognized as intangible assets, the announcement stated.

The draft rules are part of a bigger agenda by South Korea to regulate cryptocurrencies. Finance Magnates reported in May that the country's ruling party, People Power Party, was preparing a bill that also required lawmakers to declare their crypto holdings.

According to the sources quoted by Yonap, a media publication in South Korea, the bill aims to enhance transparency among the legislators regarding their holdings of digital assets. The bill followed investigations launched against Kim Nam-kuk, a former opposition lawmaker in South Korea.

South Korea Regulates Crypto

Similarly, in March last year, South Korea implemented the travel rule of the Financial Action Task Force, a global regulator fighting money laundering and terror financing. The rule requires digital exchanges to report transactions that exceed certain amounts specified by the watchdog.

Besides that, in March, the South Korean National Assembly passed a law that provides a legal framework for the regulation of digital assets. Known as the Virtual Asset User Protection Act, the legislation defines what digital assets are and the penalties for illegal transactions.

The legislation also states that digital services providers should separate users' assets from their own and must insure customers' funds. On top of that, digital asset exchanges are required to hold sufficient reserves to back the crypto assets issued to their users.

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