South Korea had a bit of Bitcoin news this morning that’s a real mixed bag for traders. On the positive side, all cryptocurrency* trading has been re-authorized for business, so to speak. *On the other hand, the South Korean ban on anonymous cryptocurrency and anonymous cryptocurrency trading is now in effect. No more Monero for you!
South Korea made clear this week that their newest set of rules for all cryptocurrencies traded in the country would go into effect on January 30th, 3017. According to Phys.org, Financial Services Commission Vice Chair Kim Yong-beom spoke with reporters today, listing the rules that’ll go into play soon:
Moving FIAT to the web in South Korea to trade for cryptocurrency will require that the bank account have a real name on it – no more anonymous accounts. Those that do not have bank accounts in South Korea will not be able to trade inside South Korea. Traders in South Korea will need to be at least 19 years of age.
The good news is that South Korea isn’t about to ban cryptocurrency trading outright. The bad news is that it won’t necessarily be the free and open market it is in most countries in the world.
Meanwhile, India is still deliberating what they’re going to do about Bitcoin, but it’s not looking good. The vast majority of regulators in the country do NOT like the idea of Bitcoin or cryptocurrency in general. A total ban on crypto trading in the country could have a major effect on the future of the platform – though, much like electricity, they might not have a choice but to re-authorize at some point in the future. You can’t just not have electricity, man.
India Finance Minister Arun Jaitley suggested that cryptocurrencies are not legal tender, and that anyone involved in trading cryptocurrencies were doing so at their own risk. He added, “The government is examining the matter. A committee under the chairmanship of secretary, department of economic affairs, is deliberating over all issues related to cryptocurrencies to propose specific actions to be taken.”
That was back in early January according to the India Times. That article also suggested in its title that Jaitley said all cryptocurrency trading was illegal – but the text makes no such claim or backup of said claim.
Fast forward to the 19th of January and Reuters reported that the Indian government sent tax notices to “tens of thousands of people dealing in cryptocurrency.” Apparently Indian tax officials collected data from nine cryptocurrency exchanges in Pune, Bengaluru, Mumbai, and Delhi, and they found – SURPRISE – one whole heck of a lot of electronic value was trading hands in a big way. They suggested that over a 17-month period, $3.5-billion in transactions had been made on just the exchanges they’d surveyed.
So while Indian government officials do not like the idea of cryptocurrency, they seem more than willing to try to tax it. That is, taking a percentage of cryptocurrency value from traders even though they do not consider cryptocurrency to be legal tender. That’ll be an interesting question for all governments to answer over then next half-decade, too.
None of the above is to be used as financial advice, and SlashGear takes no responsibility for the actions of the reader before, during, or after reading this article. Seek out a financial advisor and/or do your own homework before making any decisions in the crypto market!
Author: Chris Burns