Lawmakers in South Korea are in a process to present bills that would change the legal status of cryptocurrencies in the country. Democratic Party Rep. Park Yong-jin will introduce three bills in a bid to form regulatory frameworks for digital currencies.
Park said the through the bills he aims to ensure protection from the state which guarantees the value of a digital currency and eliminates any chances of ruining the nation’s economy from the digital currency bubble burst.
Through one of his bills, he seeks to revise the Electronic Financial Transactions Act. If the bill is approved, regulatory approval from the Financial Services Commission would be required by those involved in the cryptocurrency transactions. They will further be required to maintain data processing facilities and have at least 500 million won ($436,300) in capital.
To persuade those who do not pay taxes on income or corporate tax from digital currency transactions tax laws will be revised. These high regulations came after the mishap where about $5 million got swiped by hacking Yapizon exchange from four hot wallets in the form of 3831 bitcoins. The South Korean government lacked regulation during that time. These measures are aimed to fill such voids and increase the trust in South Korea’s one of the emerging markets.