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 proactive street-smart advice & non-conflicted advocacy, NY Attorney Sean Hayes works with leading retired Korean judges, prosecutors and experienced Korean attorneys in leading contentious and transactional matters in Asia. First non-Korean lawyer employed by the Korean Court System. SeanHayes@ipglegal.com
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