E-money to be banned for teenagers … Investment profit tax under investigation
Kim Dong Wook | east@ | 2017-12-14 12:24:35
The Korean government has begun to overhaul the virtual currency market, which is showing a 'speculative storm' in the month of surging more than 10 million won. The government announced an urgent meeting on the virtual currency related departments at the Seoul government building on December 13, under the presidency of Hong Nambu's Office of the Coordinator of the National Coordination, and announced regulations on mandatory identification of virtual currency transactions. Photo by Yunhap
The Korean government issued an emergency order to eradicate virtual currency speculation. First of all, it is mandatory to authenticate the person in the virtual currency transaction and ban the opening of the account of the minor. He also plans to seriously deal with illegal activities using virtual money, and to inspect speculative activities such as investigating the actual condition of the refuge.
Also, the government held a so called "virtual currency-related ministerial meeting" at the Seoul government office on December 13 to hold the virtual currency related ministerial meeting under the presidency of the head of the central government. In addition, it prohibited the opening of accounts of under-age children under high school.
Financial institutions hold virtual currencies and purchases as well as acquisition of collateral and blocked equity investments. The government decided to impose additional requirements such as depositing customer assets in order to operate the virtual currency exchange,, performing explanation obligations, verifying the user`s real name, distributing cryptographic keys, and selling and ordering virtual currency purchases.
Besides, it cope with illegal acts using virtual money strictly, and investigate the actual condition of the refuge.
Especially, the Task Force (TF) is expected to be formed by civilian experts and related organizations to start assessing whether taxation on virtual money investment income is taxable.
The Financial Supervisory Service and the Korea Exchange, together with the Financial Services Commission, have decided to monitor and monitor the transaction trends and abnormal trading of virtual currency related stocks.
It will intensively check the distribution of fictitious contents of the virtual money business using public announcements, bulletin boards, and press reports. Because virtual money is unfamiliar to investors, there is a possibility of disseminating false facts such as wrapping stocks that have no business relevance through social network service (SNS) or Internet bulletin board as "beneficiary" to be.
Currently, financial authorities do not recognize virtual money as `currency` or `financial investment products`. Virtual currency exchange is not subject to license.
The Financial Supervisory Authority has decided to check the contents of stock transactions and the availability of non-public information before and after announcement of new shareholders and employees. This is because there is a possibility of unfair trading such as a company with a weak financial structure announcing a fictitious virtual money business plan to support the stock market.
The Financial Supervisory Commission will begin investigating the stocks that are likely to be unfair in the monitoring process. In the case of selling stocks related to virtual currency, falsifying facts or rumors can be punished by unfair transactions or subject to fines due to disturbance of market order, the Financial Services Commission said.
A financial expert said, "A virtual currency related stock may cause a large loss due to the volatility of the stock price due to changes in virtual currency prices and regulations. If the stock trading surges solely by the wind, "He said.
By Kim Dong Wook east@