South Korean summit fails to conclude crypto regulation

Meetings of government officials in Seoul have failed to reach conclusions in South Korea’s crypto regulation debate

Over the weekend, several high-ranking South Korean government officials gathered in the prime minister’s office in the Blue House to debate the virtual currency bills proposed in the National Assembly, without outcome. Subsequently, cryptocurrencies will continue to be treated as virtual assets instead of virtual currencies. Plans of the Democratic Party to implement a crypto tax are still in place, however the launch might be postponed to after the national elections in 2022 in order to retain young voters, according to Bitcoin.com.

The issue of cryptocurrency regulations in the country became heated due to the strict laws conflicting the aspirations of miners to maintain the decentralized status of crypto. Since April, miners are obliged to register their activities with their real identity and to comply with reporting and anti-money laundering requirements.

An unnamed government official gave SBS a comment following the meeting, stating the “ministries do not want to take charge of the problem”. Instead the formation of a central controlling body was suggested.

Among the attendees of the meetings were Democratic Party leader Song Young-gil, Secretary Office of the Blue House Yoo Young-min and Prime Minister Kim Bu-gyeom. The Democratic Party had proposed the crypto tax of 20% for miners earning more than $2,220. The proposal along with the unpredictable actions of South Korean institutions has caused disarray among crypto miners in the country.

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