The Due south Korean authorities plans to tax uppercase gains on cryptocurrency transactions. A Dec. ix report from The Korea Times reveals that a revised nib to innovate the measure will be drawn up by the country's Ministry of Economy and Finance by the first half of 2022.

In parallel, the Korean National Assembly is in the process of advancing a related bill aimed at increasing transparency in cryptocurrency trading. If passed, the new regulations would come into effect one yr after the Assembly'due south plenary session.

While the authorities's uppercase gains bill will reportedly go ahead regardless of related legislation, The Korea Times notes that a more than adequate definition of cryptocurrencies and digital assets will exist required to provide clarity for the government's interventions.

Amongst the matters to be clarified is the question of whether crypto-related gains are to be deemed like to gains in stock trading or real estate transactions.

To implement its taxation plans, the government could therefore need to obtain access to trading records on cryptocurrency exchanges — a practice already underway in countries such equally the United states.

Anti-Money Laundering measures

As Cointelegraph reported, South Korea's proposed Act on Reporting and Use of Certain Financial Transaction Information will, if passed, stipulate that banks must issue real-proper noun accounts to crypto exchanges. This would ensure that crypto exchanges adhere to the same Know Your Client and Anti-Money Laundering standards as traditional financial institutions.

This motility to bring cryptocurrency exchanges nether the direct regulation of the country's watchdog, the Financial Services Commission, volition too include introducing a crypto substitution licensing system, every bit recommended by the Fiscal Action Job Forcefulness (FATF).

Major South Korean commutation Upbit, which is run by a subsidiary of Korean tech giant Kakao, revealed last month that 342,000 Ether (ETH) had been stolen from its hot wallets.

The thefts happened when the commutation was allegedly moving assets between its hot and cold storage facilities, sparking some speculation that the incident may have been an within task, rather than an external alienation. Upbit has pledged to reimburse those affected from its corporate funds.

Transfers of the ill-gotten avails accept since been detected on the Ethereum blockchain.