The chairman of South Korea’s chief financial regulator, the Financial Services Commission (FSC), Eun Sung-soo, has warned that all cryptocurrency exchanges in the country could be shut down. South Korea currently has about 200 cryptocurrency exchanges, he said.
All Crypto exchanges can be closed in South Korea
At the general meeting of the National Assembly’s Political Affairs Committee last week, The Korea Times quoted Chairman Eun as saying:
All of the nation’s 200 cryptocurrency exchanges could be closed after September once a special financial law goes into effect.
Chairman Eun explained that cryptocurrency exchanges must be registered with the FSC under the revised Special Funds Act.
“We are now accepting applications to officially register their company according to the timeline, but so far no exchange operators have applied,” he revealed. With no companies registered, he warned that “they could close suddenly in September.”
The revised bill of the Special Funds Act went into effect on March 25, and the provisions will take effect on September 24 after a six-month grace period. The change requires cryptocurrency providers, including crypto exchanges, to meet requirements such as obtaining an Information Security Management System (ISMS) certification and real account issuance. The Financial Services Commission is responsible for registering cryptocurrency exchanges that meet these requirements.
Chairman Eun noted that cryptocurrencies are not currencies, stressing that the government has repeatedly warned investors that their “sudden price swings are dangerous”.
In addition, the FSC chairman said that profits from cryptocurrency investments will be taxable from next year. The Department of Strategy and Finance announced in February that from 2022 earnings-generated cryptocurrency transactions will be classified as other income and taxed separately at a 20% tax rate.
Last week, the tax authorities of the Seoul metropolitan government seized cryptocurrencies worth approximately $ 25 million from hundreds of crypto investors in back taxes.
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