Categories: Market

Korean lawmaker rejects controversial “know-sender” rule

South Korea’s crypto community will soon face strict reporting requirements for all crypto transactions, with the country’s National Assembly currently debating whether to adopt the rules.

Arguments against the proposed KTS rule were brought before the Political Committee of South Korean lawmakers on November 16, with lawmakers and industry experts opposed to the law.

When the KTS rule goes into effect, it would require companies receiving crypto assets to verify and report the name of the issuer and its location. In the case of business-to-business transactions, the legal form and the number of employees of the issuer must also be reported.

Choi Hwa-In of the Financial Supervisory Service (FSS) warned that the local blockchain industry could be “severely restricted” if the proposal is accepted. Attorney Yoon Jong-soo later pointed out that as cryptocurrencies become more popular and accepted, it is becoming increasingly difficult to assume that senders will provide the necessary information to identify themselves.

The KTS rule also requires crypto depositors from outside South Korea to register with the Financial Services Commission (FSC), the country’s financial regulatory agency. These rules could result in an initial failure of all crypto transactions in the country until the parties involved can abide by them, although an extension is likely to be introduced along the way.

The rule was proposed through a series of bills by Kim Byung-wook of the Democratic Majority Party and Yoon Chang-hyeon of the People’s Power Party on October 28th.

Today’s hearing in the National Assembly comes after a long discussion on regulating cryptocurrency for South Korean lawmakers this year.

Related: Korean Pension Fund Invests in Bitcoin ETF: Report

Debate over whether a tax on income from cryptocurrencies will be introduced for South Koreans as planned from January 2022. Some lawmakers have proposed tax deferral in the face of fierce opposition from Finance Minister Hong Nam-ki.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Gate.io Launches USDE Financial Products with Annualized Returns of Up to 54%, Ushering in a High-Return Era for Stablecoin Investments

Nov 18th, Panama - Gate.io, a global leader in digital asset trading, has officially unveiled…

49 minutes ago

Bitdeer Convertible Notes Worth $360 Million Offered for Expansion Efforts

The Bitdeer convertible notes offer a 42.5% conversion premium, allowing conversion into cash with the…

1 hour ago

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

2 hours ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

3 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

5 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

5 hours ago

This website uses cookies.