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.
Known for his street-smart advice & proactive advocacy. Sean works with senior retired Korean judges and leading attorneys in contentious and transactional matters. First non-Korean lawyer (NY) to work at Korean Courts and one of the first non-Korean law professors. Rated a top lawyer in Korea by major rating agencies.
- Korean Cryptocurrency Case Filed to the Korean Constitutional Court: Korean Bitcoin Updates
- Is Bitcoin Banned for Foreigners in Korea? Korean Bitcoin Law Updates
- Bithump Crypto-Currency Exchange in Korea to Ban Trading in 11 Countries
- Will the Korean Government Kill Bitcoin? The legality of Bitcoin in Korea
- Privity of Contract in Franchise Agreements in Korea: Korean Franchise Law Updates
- Korean Merger Control and the Korean FTC