South Korean Ministries ‘Do Not Want’ to Take Charge of Crypto-Related Regulation, Claims Official

As the government’s task force on cryptocurrency issues its recommendations to the National Assembly, a cryptocurrency policy official from the Office for Government Policy Coordination (OPPC) has claimed that the Office for Government Ministries (OGM) are already in the process of developing their own policies with respect to cryptocurrency regulations.

South Korean lawmakers are taking steps to create new legislation to regulate the local cryptocurrency market. However, some government officials claim they are not interested in taking a leading role in these efforts, according to a report from the CoinDesk Korea. “We do not want to take full responsibility for issues related to virtual currency trading when there are other ministries that are more suited for this,” said a South Korean official.

The South Korean government has been grappling for months with how to approach the fledgling cryptocurrency industry, and things aren’t getting any clearer. At the end of July, the government announced plans to ban the raising of funds through all forms of virtual currencies, including initial coin offerings (ICOs). In a meeting of the special committee on the fourth industrial revolution, Park Dae-chul, the governor of the Bank of Korea (BoK), said, “Cryptocurrency is too immature a market to be included in the Bloomberg index,” Bloomberg reported.. Read more about new cryptocurrency and let us know what you think.

The crisis surrounding the regulation of crypto-currencies is intensifying in South Korea as politicians struggle to negotiate regulatory easing with top officials. Local media report that South Korean ministries are hesitant to take responsibility for regulating the country’s digital assets after several meetings in recent days.

Prime Minister attendedCrypto Summit

According to SBS, lawmakers held several meetings at Prime Minister Kim Bu Gyom’s office over the weekend to discuss regulatory issues as part of a crypto summit. An unnamed government official quoted by the media said talks with ruling Democratic Party Chairman Song Young-gil, Blue House Office Secretary Yoo Young-min and Prime Minister Kim had not yielded an optimistic result: Most departments do not want to deal with this problem. The solution will not be found until the responsibilities of the services are clarified. During the meeting, bills were discussed in the National Assembly on virtual currencies, including a forthcoming tax on crypto-currencies that will take effect in 2022. SBS pointed out that ten government agencies and ministries are involved to some extent in issues related to crypto currency.

Cryptocurrencies remain virtual assets with no financial value in South Korea

However, the government remains reluctant to assign the term virtual currencies to cryptocurrencies and instead continues to refer to them as virtual assets, implying that these assets cannot be considered financial assets. South Korea’s ruling Democratic Party is considering proposing a tax on cryptocurrencies in the run-up to the national elections. Younger voters, a growing demographic when it comes to using digital tools, tend to side with the Democratic Party. Still, the government seems to be making progress on its program to tax cryptocurrency activity. As Bitcoin.com News reported in early May, officials from South Korea’s Ministry of Strategy and Finance plan to introduce a new rule for virtual currency miners who earn more than $2,220 in tokens per year by imposing a 20% tax rate. What do you think of this report? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.Three government ministries in South Korea have begun preparations to jointly develop a legal framework that will regulate cryptocurrencies, but the final decision will depend on the financial authorities, a senior official at the Ministry of Justice said on Wednesday. “The Ministry of Justice, the Ministry of Finance and the State Affairs Planning Advisory Committee have started preparations to legislate a bill by the end of this year, but it will be a task for the government’s financial authorities to manage virtual currency accounts held by residents,” the official said at a press briefing.. Read more about is bitcoin safe and let us know what you think.

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