by Crypto Regulation Framework Slated For 2024
The government led by President Yoon Suk-yeol is working toward preserving South Korea’s reputation as a global leader in technological innovation. This objective is being pursued, although the country plans to introduce comprehensive crypto legislation in 2024.
The South Korean newspaper Kukmin reported on Wednesday, citing a document that had been leaked from the authorities. The report stated that the government is moving forward with plans to launch the DABA (Digital Asset Basic Act). The related piece of legislation is one of the 110 policy aims that the most recent president introduced earlier this year.
The bill itself will be drawn up in accordance with global standards and will be based on the experience gained by the world’s most developed economies.
The native FSB (Financial Stability Board) will partner with the BIS (Bank for International Settlements) and other regulators from both the EU and USA. This is to ensure that the regulations drawn up for digital currencies are in the best interest of the people and will attract more investors to the country.
South Korea To Broaden The Usage Of Crypto Across Various Sectors
The administration plans to broaden the existing infrastructure connected to cryptocurrency and fiat money transactions. This would enable new banks to build their venues for exchanging one currency for another. There are just four banks located in South Korea currently using the relevant facility.
In addition to this, the nation’s government is working toward the goal of institutionalizing non-fungible tokens (NFTs) and issuing a regulatory agenda that covers initial coin offerings (ICOs). This is coming after the country banned the usage OF ICOs following issues of fraud in the sector.
Additionally, discussions are going on for the distribution of a CBDC. This past January, the Bank of South Korea successfully completed the first step of the simulated testing that it had been conducting.
In advance, the present administration has verified the legitimacy of the rumors while also stating that the corresponding draft would be subjected to certain revisions before being completed. Also, Yoon Suk-yeol announced on the 3rd of May that he would continue to advocate for the acceptance of taxes on the income earned from crypto investing until the DABA is enacted.
A 20 percent tax will be charged on any cryptocurrency revenues more than $2,100 yearly, based on the recent crypto taxation regulations in place in South Korea. The Asian nation is taking a bold step to position itself as one of the best crypto hub in the world.
