South Korean Bitcoin legislation has been drafted to increase its mainstream adoption. South Korea’s Presidential Committee on the Fourth Industrial Revolution (PCFIR) is of the view that appropriate legislation must be prepared and implemented to ensure that next-gen fintech solutions like distributed ledger technology and cryptocurrencies are promoted.
South Korean Bitcoin legislation will focus on bringing cryptocurrency-friendly reforms that will help shun traditional financial practices. The PCFIR will help draft suitable cryptocurrency regulations in South Korea so that both conventional and crypto sectors co-exist in harmony. Reportedly, authorities in the south Asian country still view cryptocurrency with skepticism due to unclear regulations. However, South Korea is still one of the biggest crypto markets in the world.
South Korean Bitcoin legislation to pave the way for more crypto reforms
The PCFIR wants to bring about positive change with regards to Bitcoin. The new regulations, when implemented, will aid in the integration of virtual currencies into the mainstream financial markets. The rules will help trade crypto better as well as normalize the usage of crypto in the South Asian country. Improved crypto tax rules are coming as well.
Primarily, the new regulations will make digital assets more transparent and help in the institutionalize Bitcoin. Business houses and large corporations will be encouraged to adopt Bitcoin. The long-term effect of cryptocurrencies will be studied at an institutional level. Additionally, PCFIR will also pave the way for authorities to create a homegrown custodial system for cryptocurrencies.
The PCFIR has also recommended that Bitcoin futures contracts and derivatives must be explored as well. All in all, the Korean government is promoting digital assets, cryptocurrencies, and DLT in a big way. Authorities will usher in tax reforms as well to better regulate Bitcoin and its relatives. Through this latest South Korean Bitcoin legislation, the country aims to emulate the steps taken by the United States and Switzerland.
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