Korea's FSC launches discussion on the second-stage regulatory framework for the 'Virtual Asset User Protection Act'. What about Taiwan?

The Financial Commission of Korea (FSC) today held its second virtual asset committee meeting to officially launch a comprehensive discussion on the second phase of the virtual asset regulatory framework, focusing on the implementation of the Virtual Asset User Protection Act, and plans to draft legislation in the second half of this year. In addition, the South Korean encryption community specially followed the discussion on "Open Enterprise Investment Cryptocurrency" also took place at the conference. (Synopsis: Taiwan's cryptocurrency taxation provokes public resentment "unwithdrawn funds must also be declared", the Ministry of Finance and the FSC each play their own games? (Background supplement: South Korea postpones cryptocurrency profits tax to 2027, will Taiwan's tax process have an impact? The Korea Financial Commission (FSC) recently announced its main work plan for 2025, which is expected to gradually open up legal persons to participate in virtual asset transactions, and promote the second phase of the regulatory bill, focusing on Stable Coin management, list standards and exchange specifications, and further improving the market regulatory framework. South Korea officially discusses the second phase of the "Virtual Asset User Protection Law" legislation According to the local Korean media Edaily, the Financial Commission held the second virtual asset committee meeting today (15) to officially launch a comprehensive discussion of the second phase of the virtual asset regulatory framework, focusing on the implementation of the Virtual Asset User Protection Law, and plans to draft legislation in the second half of this year. Summarizing the highlights of the upcoming new bill, Kim So-young, vice chairman of the Financial Commission, said: The next regulatory framework will take a more comprehensive and systematic approach, covering service providers, encryption users and the entire encryption market. In addition, topics discussed at this conference include improving the transparency of cryptocurrency in the new list of exchanges and promoting the same information disclosure standards for encryption enterprises as traditional financial companies. In addition, in response to the regulatory issues of Stable Coin, the participating officials also referred to the relevant international practices on the management of reserve funds and the redemption rights of users. FSC: The results of the review of "corporate cryptocurrency trading accounts" will be announced soon According to the Korea Times quoted by Cointelegraph, the discussion of "open corporate investment in cryptocurrency", which has been followed by the South Korean encryption community, was also held at this meeting, but there was not much discussion. FSC Vice Chairman Kim So-young said at the meeting: Regarding the issue of allowing enterprises to open cryptocurrency trading accounts, after 12 in-depth discussions between subcommittees and project groups, a comprehensive review has been carried out. In addition, Kim So-young added: The policy review for corporate cryptocurrency transaction accounts is nearing completion. We will announce the results of the review soon and move forward quickly with follow-up measures Comparison of regulatory taxation in South Korea and Taiwan On the other hand, due to the enthusiasm of the Korean people for Cryptocurrency, the Korean government has actively formulated policies related to Cryptocurrency, and the following dynamic areas have sorted out the timeline of South Korea's regulation in encryption: Virtual Asset User Protection Act (effective July 19, 2024, Phase 2 bill is still under consideration) Virtual Asset User Protection ActAiming to protect virtual asset users, establish and improve the order of virtual asset market transactions, stipulate the definition of virtual assets, the objects excluded from virtual assets, and stipulate that virtual asset operators must safely keep and manage users' deposits and virtual assets, the law also sets the basis for criminal penalties and fines for unfair trading of virtual assets such as the use of undisclosed important information and market manipulation. In addition, South Korean authorities are also reviewing measures related to corporate transactions of cryptocurrency, and securities-based tokenissuance (STO) using Block chain technology is also being discussed for legislation. Extended reading: South Korea announces that laws such as the Virtual Asset User Protection Law will take effect in July next year, and full regulation will take shape 20% profits tax on cryptocurrency gains (originally scheduled to take effect in 2022, has been postponed twice) South Korea plans to impose a 20% tax on cryptocurrency gains (plus local taxes of 22%), which was originally scheduled to take effect on January 1, 2022, due to strong opposition from cryptocurrency investors and industry experts, the plan has been postponed twice until January 1, 2025, and despite discussions and proposals for further latency, one of which is to postpone the start of implementation until 2028, the CDP remains committed to implementing the tax plan as planned. Compared with South Korea, the Taiwanese government is still immature in terms of cryptocurrency regulation, starting with Article 6 of the Money Undering Prevention Act, which came into effect on November 30 last year, and the community was concerned about the lack of clarity in the definition of "provision of virtual asset services" in the amendment long before the law came into effect, believing that it could lead to misjudgment cases and market chaos. The recent appearance of the first illegal case has further deepened the community's doubts about the definition of the law. Extended reading: Taiwan's first case "Kaohsiung personal coin merchant arrested for trading USDT, privately trading cryptocurrency may violate the law? In addition, in terms of taxation, it has also recently aroused a strong Rebound in the community, and the written report on the "Cryptocurrency Income Tax Regulations" submitted by the Ministry of Finance to the Legislative Yuan regulates the taxation method of virtual currency exchanges, and virtual currency transactions must be subject to the current tax laws according to "whether they have the nature of securities". However, after the regulations were issued, they quickly caused public resentment in the community, and many people criticized the government's unclear taxation standards, too hasty implementation, and even questioned the lack of coordination between the Ministry of Finance and the FSC, resulting in confusion in the definition of virtual assets and taxation standards. Extended reading: Taiwan's cryptocurrency taxation provokes public resentment "unwithdrawn funds must also be declared", the Ministry of Finance and the Financial Regulatory Commission each play their own? Related reports South Korea officially promotes the legalization of STO securities tokens, and a number of securities firms and banks are actively preparing El Salvador's new plan: every household in the country installs BTCMiningNode, and the cost is exclusively exposed Kaiko report: A large number of safe-haven funds in South Korea poured into BTC in response to the martial law turmoil in Yoon Seok-yue (South Korea's FSC initiates discussions on the second phase of the "Virtual Asset User Protection Law" regulatory framework, what about Taiwan? This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".