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The Korean crypto regulatory space is being set to become even more tightly regulated, with laws enacted on financial reporting for domestic businesses. Businesses must report all transactions or face a 5-year prison sentence.
The Korean Financial Services Commission has revised its financial reporting rules, to include the cryptocurrency sector. Strict reporting rules will go into effect for existing companies, allowing for a six-month period to comply or face severe penalties.
This amendment requires all crypto businesses, exchanges, asset managers, wallet providers and custodian platforms, to file their transactions with the intelligence unit. finance. South Korea’s crypto reporting regulations will take effect from March 25.
Businesses that fail to comply with the reporting regulations before September 24 can face a fine of up to 50 million won ($ 44,000) or five years in prison.
From March 25, new crypto service providers, wanting to establish a presence in this country will have to register with the FIU – a branch of the FSC responsible for overseeing anti-money laundering across all Korea’s financial ecosystem.
The South Korean tax service said on March 15 it had identified more than 2,400 individuals hiding their assets with cryptocurrencies to evade taxes. Exchanges have also shared customer data with tax authorities, seeking to identify more tax evaders hiding their assets with crypto.
Meanwhile, the country’s crypto taxation will come into effect in January 2021. The law will apply capital gains tax on profits over $ 2,300 in transactions.
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