South Korea’s government has revealed it is planning to enforce all-inclusive regulations for the digital currency industry in 2024.
According to CoinGeek, South Korea could see these regulations enacted as soon as 2023 with enforcement starting in 2024.
Incoming South Korean President Yoon Suk-yeol is set to introduce the Digital Asset Basic Act in 2023, according to a document titled the National Task Implementation Plan.
The implementation plan for digital assets will incorporate digital assets and related activities – such as NFTs and ICO – into the institutional system to help strengthen investor confidence.
CoinGeek noted that the government will review the Bank of Korea Act that introduces issuing a central bank digital currency under the plan. Furthermore, it will also allow more banks to be able to partner with digital currency exchanges to provide real-name verification services.
The report quotes the Presidential Transition Committee saying, “We will strengthen the link between digital asset trading accounts and banks by expanding financial institutions that provide real-name verification services for virtual asset transactions.”
The document also puts forward the government’s intent to work with other global regulators such as the Bank of International Settlements and the European Union to streamline digital currency regulations.
Since winning the election earlier this year, Yoon Suk-yeol has said there will be no taxation of the digital currency industry until proper regulations are put in place.
South Korea is also developing a new digital currency tax regime. Under the rules being considered, the government will levy a 20% tax on digital currency gains above $2,100 per year.
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