The G20 Meeting is Approaching in July, and the Korean Side Will Take the Lead in Aligning With Everyone
G20 regards cryptocurrency as a financial asset
G20 is an international forum of governments and central bankers of various countries. Its members include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States and European Union.
Policymakers in these countries have agreed to regulate cryptocurrencies as financial assets and set July as the deadline for implementation. This is the first step in the G20’s unified supervision of cryptocurrencies.
The reason behind this concurring action is that the organization believes that the scale of cryptocurrency development is too small and the total market value is less than 1% of global GDP, which will not pose a threat to the financial market.
South Korea will take action for G20 uniform pace
Previously, due to the speculative nature of cryptocurrency, the Korean government earlier classified it as a non-financial product. Since this is inconsistent with the G20, the Korean Financial Supervisory Service (FSS) stated:
“It is almost certain that cryptocurrencies will be classified as asset classes. The main issue will be how to properly supervise under the unified framework of the G20. Given that the current situation is not ideal, we will increase our efforts to improve the status quo.
South Korea also agreed to apply the FATF’s standards to the regulation of cryptocurrency.”
Recently, Yoon Suk-heun, director of the Korea Financial Supervision Service (FSS), said that it will formulate a loose cryptocurrency policy and promises to release the latest news on this issue in the near future.
At the same time, the National Tax Agency of South Korea has been working with the Ministry of Finance to collect tax data to establish a new cryptocurrency tax policy. Although cryptocurrency transactions in South Korea are currently tax-exempt, transaction operators are required to pay income tax.
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