The head of the Korean Fair Trade Commission has noted to local vernaculars that he does not agree with Justice Minister Park Sang-ki’s comment that “cryptocurrency investment is gambling.” He further noted that: “cryptocurrency recently emerged as an issue in Korea and other laws do not have the exact legal clauses that relate to closing exchanges.” Thus, indicating, in part, that the Korean government doesn’t have the specific power to close the Korean cryptocurrency exchanges. Of course, the FTC Chairman’s opinion does not have any legal binding effect, however, his opinions are widely respected by academics and legal practitioners.
Many legal practitioners I have spoke to, in Korea, believe that the government shall not have the power, because of the number of traders in Alt Currencies to ban trading in Alt currencies. This reality may lead to a settling of this issue via the imposing of capital gains tax on the cryptocurrency and the classification of the specific Alt Currency as an asset class. Opportunities still exist even under the status quo.
We have been approached by numerous potential clients wishing to establish a Bitcoin trading company in Korea. We have wrote articles on Korean cryptocurrency issues including an article on the potential ban on Foreigners Trading Bitcoin in Korea (note not companies with foreigners as shareholder) and an article on Establishing a Company in Korea.
- Future of Bitcoin in Korea according to FTC: Korean Cryptocurrency Updates
- Korean Cryptocurrency Case Filed to the Korean Constitutional Court: Korean Bitcoin Updates
- Will the Korean Government Kill Bitcoin? The legality of Bitcoin in Korea
- Is Bitcoin Banned for Foreigners in Korea? Korean Bitcoin Law Updates
- Korea Blockchain Law Society Founded: Korean Crptocurrency Law Updates
- Bithump Crypto-Currency Exchange in Korea to Ban Trading in 11 Countries
- Korea’s Virtual Assets/Cryptocurrency Law
- South Korea to Impose Taxes on Cryptocurrency in 2022
- Korean Corporate Tax Law Amendments for FY 2021
- Korea Due Diligence for Joint Ventures, Licensing, OEMs and Buying a Korean Company