Following a forum with the International Monetary Fund (IMF), South Korea is fostering structural reforms. It consist improving the management and regulation of digital currency transaction concerns consisting of Bitcoin.
South Korea Pushing for Structural Reforms
The IMF has really needed higher labor efficiency and regulative reform in significant nations, including South Korea, Sedaily reported. The circumstance was put on the discussion at the 36th conference of the International Monetary and Financial Committee (IMFC), was in Washington, D.C on 14 of October.
The IMFC forum is the highest-level forum of the IMF’s member nations, the publication famed. It is including that the need for regulations on financial technology and Bitcoin was raised at the conference. Since there is a requirement to regulate a competitive financial market and to conduct an equitable competition system that can intercept winners form talking over. The publication noted the IMFC.
Kim Dong-yeon, South Korean Deputy Prime Minister and Minister of Strategy and Finance, attended the forum. “We must actively promote structural reforms to fulfill the development”, the news outlet noted him recently. In addition, Sunday Seoul Newspaper estimated him stating on Friday:
“We will reinforce the management and guidance of virtual currency deals such as bitcoin.”
Kim includes, “the virtual loan is a current brand-new field and it is spanning as a brand-new field, but we are bothered about the financial investment damage due to lack of governance. I will notice if there is anything we can do.”
On Friday, Kim also disclosed that he will perform an active function in “evaluating the role of virtual digital currencies such as Bitcoin”. He was then saying, “Presently, the finance committee is planning countermeasures versus virtual money at the level of the federal government. Therefore, it must be handle with an axis of the economy in the monetary sector.”
The Korean government has been discussing various ways to regulate cryptocurrencies in the country. In July, a special team was declare to determine the regulative structure for Bitcoin. There are innumerable legal issues pertaining Bitcoin guidelines such as whether to categorize the cryptocurrency as possession, money or security.
Cha Hyeon-jin, chief of the payment system department Bank of Korea stated in the month of September that, “virtual currency is not a monetary or financial item.” He explains:
“Virtual currency traders are reporting to the Fair Trade Commission and local governments as e-commerce traders and actual bitcoins are being trade as commodities.”
The Financial Services Commission (FSC) has published its strategic plans to deal digital currencies including Bitcoin and Ether. Therefore, it is requiring banks to strengthen their verification process and report any apprehensive transactions. Soon after the affirmation of the FSC, the Ministry of Science, ICT, and the Korea Communications Commission announced. It that they will examine on-site examinations of cryptocurrency service.
There occurs the issue of taxation. Recently, Han Seung-hee, the commissioner of the nation’s National Tax Services. that the issue of how to best tax cryptocurrencies is taken out. Since it is consisting the footprint of capital gain tax, the VAT, and the current tax. In addition, at the end of the September, the FSC prohibited all initial coin offerings (ICOs) in Korea.