Some of the largest securities firms in South Korea are on schedule to launch a virtual asset exchange in H1 2023, led by the Financial Investment Association. According to local news, the financial firms have applied for a government approval to initiate the exchanges.
An official from one of the securities companies said, “The discussions necessary for the establishment are currently being finalized internally.
“Details could be made after the government announced in the fourth quarter of this year that included provisions of the virtual asset law and deregulation.”
The President of South Korea, Yoon Suk-yeol is dubbed as a crypto-pro President. Yoon, a former prosecutor said vowed to allow initial coin offerings (ICO), which will enhance South Korea’s position in among the crypto-friendly countries.
A member of the People Power Party also said that profits of up to $40,000 will not be taxed. Nevertheless, airdrops may still be subject to gift tax, which ranges between 10% – 50%.
Plans to impose a 20% on crypto profits were delayed to 2025. Cryptocurrency trading regulations may be introduced in 2023 under the Digital Asset Basic Act.
The Digital Assets Framework Act
The securities companies that are planning to launch an exchange are Samsung Securities, Mirae Asset Consulting, NH Investment & Securities, Shinhan Financial Investment and KB Securities.
KB Bank hinted at the beginning of the year its intention to enter the digital assets markets:
‘We plan to prepare for the preemptive launch of related products through domestic and overseas digital asset market research. Considering the speed of adoption of virtual assets in major countries, the company aims to launch products as quickly as possible after deregulation in Korea [lead by Yoon].
‘Hong-gon Kim, head of KB Asset Management’s Index Quant Management Division, said, “We will launch a virtual asset-themed equity fund, etc. as soon as possible.” Periodicals will also be published.’
The Digital Assets Framework Act will differentiate between tokens that are considered as securities (STOs) and non-security tokens including NFTs.
The FIU Took Action against 16 Crypto Exchanges
Although the South Korean government is more open to crypto, it does not necearily mean exchanges can operate without the required license.
