South Korea passes comprehensive cryptocurrency regulatory legislation
South Korea passes new legislation to regulate and tax cryptocurrency trading, providing clearer legal framework for one of world's most active crypto markets.
On March 5, 2020, South Korea passes comprehensive cryptocurrency regulatory legislation. South Korea passes new legislation to regulate and tax cryptocurrency trading, providing clearer legal framework for one of world's most active crypto markets.
The legislation also established tax treatment for cryptocurrency gains, ending years of uncertainty about how digital asset profits would be taxed. South Korea's regulatory approach represented a relatively balanced attempt to bring cryptocurrency under appropriate oversight without stifling innovation or prohibiting trading.
South Korea had long been one of the most enthusiastic cryptocurrency markets, with exceptionally high trading volumes relative to population and a tech-savvy population that embraced Bitcoin and other digital assets. However, the country had also experienced problems including exchange hacks, fraud, and concerns about cryptocurrency's role in capital flight and money laundering.