The hunt is on – Governments around the world are looking to take a more active role in the regulation of Bitcoin and cryptocurrencies. Lately, they have been trying to regulate the activity of exchanges, as we can see with the repeated attacks on Binance. In addition, supra-state bodies, such as the FATF and the European Commission, are also considering how best to regulate this emerging sector. South Korea is joining this trend of strict regulation, but this only slightly impacts Bitcoin’s (BTC) “Kimchi Premium” in the country.
47 Million Cryptos Seized
The government of Gyeonggi Province justannounced the seizure of 53 billion won ($47 million) in digital assets. The case involves 12,000 people accused of tax evasion following a months-long investigation. The seizures followed a broader investigation into taxes owed by about 140,000 people.
We will do everything in our power to protect law-abiding taxpayers, and fulfill our tax fairness mission by searching for and locating assets that tax evaders may be hiding amid the recent cryptocurrency trading boom. “
Kim Ji Ye, director general of the Gyeonggi Provincial Fairness Bureau
Gyeonggi officials said it was the largest seizure of cryptocurrencies for non-payment of taxes in Korean history. To track down their account details on exchanges, investigators compared phone numbers registered by those accused of duping the taxman.
Authorities said the confiscation of the crypto-assets had been finalized. Insolvency and asset liquidation proceedings will follow if the major tax evaders do not voluntarily pay their overdue taxes.
These unprecedentedly large seizures are the latest mark of a hardening of Korean policies towards cryptos. Currently, many exchanges are working hard to comply with new know-your-customer (KYC) laws that will take effect in September.
Korea’s financial regulator is studying the Top 500 crypto
Along with upcoming customer identification legislation, South Korea is considering 4 bills related to the regulation of digital assets. The National Policy Committee
, a parliamentary committee, is currently considering 4 different bills encompassing the entire cryptocurrency industry. The bills announced by Business Koreaconcern both the regulation of crypto businesses and the protection of investors.
In addition, the financial regulator, the Financial Services Commission
(FSC), is preparing new crypto regulations.
“We are currently doing extensive work by studying and analyzing data on 578 crypto currencies of various forms. “
Eun Sung-soo, Chairman of the FSC Korean Premium Kimchi Indices on Bitcoin (source: CryptoQuant)
The reasons behind the study of this large sample of digital assets are currently unknown. Nevertheless, it is likely to be part of a risk analysis for retail investors. Of the 578 assets studied, there is undoubtedly a majority of illiquid shitcoins, which are the perfect target for pump and dump
This financial and regulatory activism around Bitcoin and cryptocurrencies is a sign of how important this new asset class is becoming. On your end, start accumulating and trading your first bitcoins by registering on the leading platform FTX and get a discount on your trading fees (affiliate link).