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- Crypto regulations are getting more stringent in South Korea
- The Peer-to-Peer trading platforms are continuing to skyrocket and achieve new all-time highs over this month
- More than 353 million in terms of Korean Won has been traded in the first week of this month
- The authorities announced that the nation would tax 20% of the crypto holdings
Crypto regulations are getting more strict as authorities have begun to eye the industry. Although the digital currency ecosystem is more secure than any industry, financial regulators are trying to bring more stringent rules for cryptocurrency investors and firms. However, it is incredible to see that despite such headwinds, traders have no fear. Notably, in South Korea, the cryptocurrency industry is facing regulatory headwinds. Despite such fears of crackdown, the nation’s digital asset market has been growing well. The Peer-to-Peer trading platforms are continuing to skyrocket and achieve new all-time highs over this month.
Crypto regulation brings no ambiguity or confusion
Thanks to the decentralized nature of digital assets, no governments can put a stop to the industry. As governments are imposing prohibitions and calling for stringent rules investors and traders are shifting towards P2P exchange platforms. According to recent data from LocalBitcoins, more than 353 million in terms of Korean Won has been traded in the first week of this month. The figure is incredible despite the regulatory fear in the region.
Such data was an enormous spike in comparison to the previous weekly volumes with Korean won. According to the datas, the timing of the surge is a unique one. Notably, if we consider the regulatory scenarios in the region, there is nothing sort of confusion in South Korea.
Why do South Korean governments put severe laws?
The authorities in the region have been putting down stringent laws. Notably, the government is seeking to combat illicit activities via digital assets. Indeed, cryptocurrency taxation laws are leading the chart in South Korea. Later the authorities announced that the nation would tax 20% of the crypto holdings. The authorities had to discuss further delays in the judgement. Indeed, the crypto tax laws will come into effect from 2022. However, it is yet to be cleared what specific form will the government take.
Nothing else than uncertainty
Notably, Non-Fungible Tokens (NFTs) are also a part of the discussion. Although the Financial Services Commission (FSC) has clarified that special assets would not be the subject to taxation, the authorities are talking about further delays. It is also noteworthy that certain agencies have also criticized the same. The scenario ultimately depicts increasing uncertainty in South Korea.
