Korean Presidential Commission Recommends Allowing BTC Derivatives

The South Korean Presidential Office’s 4th Industrial Revolution Commission has recommended that the Korean government should allow financial institutions to have the right to launch cryptocurrency-based investment products, including Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term derivatives, as a pathway for the eventual institutionalization of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

According to a report by Business Korea, the commission also recommended that “the financial sector develop and introduce a Korean custody solution to avoid relying solely on foreign custodians in the process of handling crypto assets,” and that Bitcoin should be listed directly on the Korea Exchange (KRX).

"Participants in the traditional capital market such as securities firms and banks should develop and introduce domestic custody solutions to handle crypto assets so that the Korean crypto-asset custody market will not depend on foreign countries," the commission explained.

"The Korean government has to gradually allow institutional investors to deal in crypto assets and promote over the counter (OTC) desks dedicated to institutional investors’ trade."

”It is no longer possible to stop crypto-asset trade.”

The commission also recommended that the Korean government should follow in the footsteps of the United States and Swiss financial authorities and consider introducing licensure and guidelines for cryptocurrency exchanges and for integrating cryptocurrency-related products into the country’s financial system because of increasing global interest in crypto trading.

“As of May 2019, daily crypto-asset trade hit more than 80 trillion won (about US$69 billion) in the world, so it is no longer possible to stop crypto-asset trade,” the commission said.

The commission also recommended the unification of different terms such as cryptocurrencies and virtual currencies under the term “crypto assets.”

South Korea won’t tax crypto trading profits--for now

Late last week, Finance Magnates reported that the South Korean government has decided not to impose a tax on earnings from digital asset trading to ease the confusion of crypto taxation in the country.

However, the South Korean government is reviewing international trends to properly include digital currency in the current tax laws.

“We are preparing a taxation plan for virtual assets by comprehensively reviewing the taxation of major countries, consistency with accounting standards, and trends in international discussions to prevent money laundering,” stated the South Korean Ministry of Finance and Strategy in an official announcement.