Just a few days back, South Korea was planning to seek the collaboration with China and Japan over taxation on bitcoins and regulating cryptocurrency. The South Korean government has called for the central bankers and financial regulators of 23 other countries. This call included International Monetary Fund, the European Union along with 10 other organizations to collaborate on controlling the cryptocurrency trading.
South Korea leads the way for bitcoin regulation
There had been propositions on the taxation of bitcoins by the South Korean government. Already, we have been pondering the question if China will collaborate with South Korea on these taxations. Now, a large part of the world has come into the picture.
On Monday, the Vice Chairman of the South Korean Financial Supervisory Commission (FSC), Kim Yum-Bum, represented South Korea at the meeting of the Financial Stability Board (FSB) Steering Committee in Basel, Switzerland, where the relevant discussion was held. As per the news, these discussions included evaluation of regulatory reforms along with virtual currency, cybersecurity and mitigation measures against cyber crimes.
FSB is an international financial body that monitors and recommends about the global financial system. The members include 24 countries viz. South Korea, India, China, Japan, Russia, US, UK, Switzerland and South Africa etc. The International Monetary Fund(IMF), the World Bank, the European Commission, the European Central Bank(ECB) and the Bank of International Settlements(BIS) among other organizations are also part of this system.
Similar to the European Union’s plan of stringent regulation on bitcoin regarding its use for illegal acts, Kim also spoke about the cross-border cyber transactions that involve the usage of bitcoins for money laundering and other legal activities. He insisted on international coordination to curb the trading of virtual currency and start an international debate.
“As the international financial risks related to virtual currency increase, the financial authorities need to pay close attention to this. In particular, virtual currency, which is outside the traditional regulatory domain of financial authorities, is affecting consumers.”
Awaited reaction from called countries
It has been reported by the media sources that Kim told the financial regulations of other countries and organization that:
“Virtual currency is too risky to ignore…We will improve transparency, prevent the spread of speculative transactions, and prevent money laundering.”
Kim insisted that FSB has to take the right action by studying the potential risks of virtual currency in financial stability.
He further suggested that:
“We must support virtual currency countermeasures by integrating and sharing relevant information such as the contents and effects of the virtual currency regulation of each country.”
Now, the big question is what will be the decision of other countries and organizations? What do you think?
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Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com