South Korea

Bitcoin.com Partners With Mecon Cash, Enabling BCH to Korean Won Withdrawal at Over 13,000 ATMs Across South Korea

20/01/2020 by Idelto Editor

Bitcoin Cash has been added to Mecon Cash’s M.Pay platform which is integrated with over 13,000 ATMs in South Korea. By making bitcoin cash usable for withdrawing won across the country, Mecon Cash is ensuring that BCH users in Korea can always make urgent and small transactions in any place that still does not accept peer-to-peer electronic cash directly.

Also Read: First Bitcoin Cash Developers Meeting of 2020 to Be Held Today

Bitcoin Cash Integrated Into Platform With Over 13,000 ATMs in South Korea

South Korean cryptocurrency company Mecon Cash has integrated BCH into its payments platform M.Pay following a cooperation agreement with Bitcoin.com. The platform is connected to one of the biggest providers of ATMs, so bitcoin cash can now be used to withdraw to Korean won through M.Pay in more than 13,000 ATMs in South Korea at South Korea’s biggest convenience store chains GS25 and Mini Stop.

The main target demographic for the new service is cryptocurrency holders who need quick cash as well as people who send over $6 billion in remittances to Korea from overseas each year. Mecon Cash also operates other services in addition to payments, including an e-commerce platform that allows users to buy a wide range of products (Mecon Mall) and mobile games that utilize M.Pay for rewards. Bitcoin Cash is now available to be used on these as well, and you can expect more interesting collaborations with Bitcoin.com to be announced in the future.

“Through our partnership with Bitcoin.com, we will grow the presence of Bitcoin Cash throughout the Korean market starting with the ATM withdrawal services. We have huge applications coming up where the close collaboration between Mecon Cash and Bitcoin.com will see positive synergies in the upcoming future not only in the Korean market but also the global market,” stated Chairman of Mecon Cash, Jo Jae Do.

“Mecon Cash is enabling Bitcoin Cash to be used at 13,700 ATM locations across Korea,” commented Bitcoin.com Executive Chairman Roger Ver. “Bitcoin.com is proud to be working with Mecon to help bring Bitcoin Cash and Mecon Cash to Korea and to the world.”

Promoting the BCH Ecosystem

Consistently among the top digital assets in the world by market cap, Bitcoin Cash is accepted by most crypto service providers. It also powers the Simple Ledger Protocol infrastructure which already includes more than 6,000 SLP tokens created since August 2018.

As part of its mission to bring economic freedom to the world, Bitcoin.com is strongly promoting BCH adoption as peer-to-peer electronic money, as well as the development of the surrounding ecosystem, with all its business partners. For example, last year the electronics manufacturer HTC added native bitcoin cash support to its flagship smartphone, Exodus 1, following a partnership with the company.

It was also recently revealed that Bitcoin.com is planning to launch a $200 million BCH investment fund this year that will focus on payment related solutions and non-custodial financial services for Bitcoin Cash. The fund will invest in and incubate BCH businesses like payment gateways, processors, remittances, wallet and merchant acquirers.

What do you think about Bitcoin.com partnering with Mecon Cash to enable bitcoin cash to Korean won withdrawal at over 13,000 ATMs across South Korea? Share your thoughts in the comments section below.

Images courtesy of Shutterstock.

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Bithumb Takes Korean Tax Authority to Court Over ‘Groundless’ Crypto Tax

17/01/2020 by Idelto Editor

Crypto Exchange Bithumb Takes Korean Tax Authority to Court Over $69 Million 'Groundless' Tax

Bithumb, a major crypto exchange in South Korea, has taken the country’s tax authority to court over a “groundless” tax imposed on the exchange. Experts explain that currently there are no grounds to tax crypto transactions in South Korea and existing tax laws do not apply to crypto transactions.

Also read: Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia

Bithumb Seeks to Nullify Tax Bill

While South Korea currently has no law to tax crypto profits, the country’s National Tax Service (NTS) has imposed a tax of 80.3 billion won ($69 million) on Bithumb, one of the largest crypto exchanges in the country. Bithumb subsequently filed a complaint with the country’s Tax Tribunal against the NTS alleging that the agency’s tax imposition on it was “groundless,” the Korea Times reported, elaborating:

The firm claims that cryptocurrency is not a legally recognized currency and therefore the authorities lack the grounds to impose a tax of any kind.

The Tax Tribunal has 90 days to determine whether to grant or dismiss Bithumb’s motion which seeks to nullify the 80.3 billion won in withholding tax imposed by the NTS, the news outlet added. “We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal,” an NTS official was quoted as saying.

The NTS’ Motive and Method Used

Experts have speculated about why the NTS has slapped Bithumb with a tax bill when the current Korean tax law does not apply to crypto transactions. The Ministry of Economy and Finance, which oversees the country’s economic policy, recently explained that individual investors’ crypto profits are not taxable in South Korea. However, work is underway to amend the tax code to allow the taxation of cryptocurrency.

Choi Hwoa-in, an adviser to the Financial Supervisory Service, explained to the Korea Times that with a growing number of traders profiting handsomely from cryptocurrencies over the past few years, the tax authority has viewed this sector as a new source of taxable income. Choi suspects that “the NTS is putting the issue front and center for public discourse in a clever move seeking to establish grounds to impose tax on what essentially remains tax-free gains,” the publication conveyed.

To tax Bithumb, the NTS has categorized foreign traders’ crypto gains as miscellaneous income. However, earnings from real estate or stock trading are categorized as capital gains in South Korea. Choi further explained that “Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear,” concluding:

The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry’s opinion on the same matter.

In South Korea, capital gains tax is collected for every transaction made. Ahn Chang-nam, a tax professor at Kangnam University, believes that it is “realistically difficult” for the government to know about every crypto transaction. “It seems like the NTS took a practical approach in categorizing gains from crypto asset trading as miscellaneous assets,” Ahn opined. Choi added, “Bithumb filing a suit after paying the full amount in that sense is a calculated move expecting partial to [a] full return of the amount paid.”

What do you think of the Korean National Tax Service taxing Bithumb even when there is no tax law covering cryptocurrency? Do you think the court will side with Bithumb? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock, Business Korea, and CNBC.

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Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia

14/01/2020 by Idelto Editor

In this roundup, we cover EU-wide crypto regulations and individual countries’ new digital asset rules including Austria and the U.K. We also cover numerous crypto regulatory developments in the U.S., China, Japan, South Korea, India, and the Philippines.

Also read: Regs Roundup: SEC Actions, Crypto Tax-Free in Korea, New Chinese Laws

EU-Wide Crypto Regulations Begin

The deadline for all European Union member states to transpose the 5th Anti-Money Laundering Directive (AMLD5) into their national legislation was Jan. 10. All EU countries should have started regulating crypto exchanges and custodial wallet providers like banks and financial institutions.

A number of European countries have independently announced how they are regulating crypto service providers such as Austria and the U.K. Some countries have missed the deadline, however. The Netherlands, for example, said on Jan. 10 that its crypto legislation is not yet effective despite many months of preparation.

Prior to the Jan. 10 deadline, European Central Bank (ECB) President Christine Lagarde said that the bank wants to take an active role in the digital currency field, reinforcing her plan to lead the ECB “ahead of the curve.” The ECB is also actively working on a digital currency, which Lagarde said should not discourage private sector solutions.

Meanwhile, cryptocurrency is a focus of European regulators this year, as the European Securities and Markets Authority (ESMA) outlined in its Strategic Orientation 2020-22.

US: Multiple SEC Actions and a Registration Statement

The U.S. has been active regarding crypto oversight this past week, with several government agencies taking crypto-related actions. As the Securities and Exchange Commission (SEC) deals with a number of crypto cases, its compliance office has named digital assets a priority this year.

Among the cases the SEC dealt with last week is one concerning Telegram. The agency has gotten a break in this case when the Southern District Court of New York ordered the company on Monday to hand over its bank records by Feb. 26. Secondly, the SEC is seeking more than $16 million in disgorgement plus civil penalties in a case targeting Icobox and Nikolay Evdokimov, a court document reveals on Jan. 10. Thirdly, the agency charged Donald G. Blakstad and two entities he controlled on Jan. 8 with engaging in the fraudulent offer and sale of over $3.5 million of securities. They claimed to have “developed a world-class data center for cryptocurrency mining.”

Meanwhile, First Bitcoin Capital Corp. filed a registration statement with the Commission on Jan. 7 seeking to list its shares on Nasdaq.

US States: Illinois Blockchain Act, Wyoming Bill, NY Crypto-Focused

Several U.S. states have also taken crypto regulatory actions this past week. The state of Illinois’ Blockchain Technology Act took effect on Jan. 1. It outlines the legal uses of blockchain technology, stating:

A smart contract, record, or signature may not be denied legal effect or enforceability solely because a blockchain was used to create, store, or verify the smart contract, record, or signature.

In the state of Wyoming, House Bill 43 on “digital representation tokens” was assigned a bill number on Jan. 9. It defines the rights, duties, and obligations associated with digital representation tokens, as well as providing exceptions.

In the state of New York, Governor Andrew Cuomo has proposed amending the state’s financial service law to place crypto companies “on an even footing with other financial services companies.” He explained that under the current law, entities licensed under the Insurance Law or Banking Law are required to pay assessments to the state’s Department of Financial Services to cover the cost of examination and oversight. However, crypto companies are not required to pay such assessments, despite being subject to similar examination and oversight requirements.

China Prioritizes and Tests Digital Currency, Advances Commercial Blockchain

China has continued to make headlines in the crypto space, with its ongoing love for blockchain technology and push to launch a central bank digital currency (CBDC) ahead of Facebook’s Libra. Its central bank, the People’s Bank of China (PBOC), has named digital currency one of its priorities this year. In addition, the media reported last week that the bank’s digital yuan had completed its preliminary design and testing.

As for blockchain technology adoption, the provincial government of Anhui announced earlier this month a plan to use blockchain technology across governmental service centers. Moreover, the country’s nationwide blockchain service infrastructure platform reportedly will be put into commercial operation in April. The Blockchain Service Network is an industry alliance initiated by the State Information Center.

Meanwhile, China is still skeptical about cryptocurrency. A report by blockchain security firm Peckshield claims that cryptocurrency-based capital flight from China was around $11.4 billion in 2019.

Japan’s New Leverage Rule, South Korea for Mainstream Crypto, Initiative in Crypto Valley of Asia

Several other Asian countries have made crypto-related announcements this past week. In Japan, the Financial Services Agency (FSA) has reportedly revealed its plans to limit the leverage in crypto margin trading to twice the deposits of traders. Local media reported that the new rule will be included in a Cabinet Office order linked to the revised Financial Instruments and Exchange Act which is expected to go into effect in April.

In South Korea, the Presidential Committee on the Fourth Industrial Revolution has proposed a number of pro-crypto measures. The committee has urged the government to integrate cryptocurrency into the country’s financial system, allowing financial institutions to directly handle and offer a wide range of crypto products, including derivatives. It also proposes listing bitcoin on the country’s stock exchange.

In India, the state of Kerala is positioning itself as the blockchain hub of India, with plans to use the technology to improve a wide range of existing systems, including financial.

In the Philippines, a plan to build an airport is underway in the “Crypto Valley of Asia,” an initiative of the Cagayan Economic Zone Authority (CEZA), the government agency responsible for managing the Cagayan Special Economic Zone and Freeport. Last week, CEZA’s administrator discussed pro-crypto regulations with a Japanese minister of state. They also call for cooperation among Asian countries.

What do you think of the regulatory developments covered in this roundup? Let us know in the comments section below.

Images courtesy of Shutterstock.

The post Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia appeared first on Bitcoin News.

Bithumb Pledges $8M to South Korea’s ‘Regulation-Free’ Blockchain Zone

10/01/2020 by Idelto Editor

South Korean cryptocurrency exchange Bithumb has pledged to invest roughly $8 million into the Busan blockchain zone. The region was recently declared “regulation-free” by the national government and modeled after the Switzerland town of Zug. Bithumb’s subsidiary GCX Alliance will discuss the preliminary plans with the Financial Services Commission (FSC) this month.

Also read: Mining Giant Canaan Faces Stiff Competition After IPO Shares Slump

Bithumb Joins South Korea’s Blockchain Coalition in the ‘Regulatory-Free’ Zone in Busan

On December 30, 2019, news.Bitcoin.com reported on the South Korean exchange Bithumb when the National Tax Service of South Korea (NTS) withheld more than 80 billion won ($69 million) from the company’s international clients. Bithumb is one of South Korea’s most profitable exchanges and the Korean won is often a top five trading pair with the most popular digital currencies. The recent tax levy was considered South Korea’s first attempt to have the NTS enforce tax commitments tied to cryptocurrencies. Following the NTS crackdown, Bithumb has reportedly partnered with the nation’s Ministry of SMEs and Startups. The high volume South Korean exchange plans to inject $8 million into South Korea’s “regulation-free” zone for blockchain development in Busan.

Busan is allegedly one of seven regions that the Korean government has chosen to pilot distributed ledger tech and crypto solutions. Bithumb is also no stranger to Busan, as the exchange operates a walk-in customer service center in the zone, alongside its other branches in Busan Daejeon, Gangnam, and Gwanghwumun. Local reports highlight the Busan investment plan will be hashed out with the FSC during the latter half of January 2020 and purportedly Bithumb’s GCX Alliance will carry out the objectives. “Bithumb and the Financial Services Commission will discuss the investment in Busan blockchain special zone at the end of January,” a senior official from the Ministry SMEs and Startups detailed.

Busan’s So-Called ‘Regulation-Free Zone’ Isn’t Exactly a Place Where You Can Develop Any Kind of Cryptocurrency Project

Busan isn’t exactly an area where blockchain developers and companies can create whatever they want. Initial coin offerings (ICO) are not acceptable within the Busan special region. The area in Busan is meant to be similar to Zug’s famous crypto hub in Switzerland, but there are still restrictions. The public caught wind of the special blockchain zone when the Ministry of SMEs and Startups revealed the idea in July. One of the biggest reasons for leveraging Busan is because it’s the second most populated city with lots of tourism.

The government entity wants blockchain and crypto projects to focus on the public sector with ideas that bolster tourism, consumerism, and public safety. In order to call Busan a “regulation-free zone,” South Korean officials lifted 11 regulations for businesses and startups leveraging blockchain. Bithumb’s GCX Alliance contribution will add to the expected 29.9 billion won ($25 million) by the year’s end.

The push to galvanize Busan was started by South Korean President Moon Jae-In, who recently told the press adapting to blockchain technology was “a matter of survival.” Researchers from Amcgroup have highlighted the fact that only the local BNK Financial Group’s stablecoin is being used within Busan’s borders. No other cryptocurrencies are being worked on at the moment, the report discloses. Further, Amcgroup stressed that “lack of exceptions for cryptocurrencies has limited the appeal to blockchain startups.” Bithumb donating funds to Busan may be good for the region, but if blockchain startups won’t want to work there because public cryptos are restricted, the so-called “regulation-free blockchain zone” might be a worthless attempt.

What do you think about Bithumb planning to donate $8 million to the Busan blockchain zone? Do you think the “regulation-free” zone is truly regulation-free or do you think the government conceived concept is hogwash? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any third party products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Image credits: Shutterstock, Busan, Bithumb customer service centers and logos, Cruisemapper, Wiki Commons, Fair Use, and Pixabay.

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Korean Presidential Committee Pushes to Make Cryptocurrency Mainstream

08/01/2020 by Idelto Editor

A South Korean committee directly under the president has recommended several measures to the government that will make cryptocurrency mainstream. Emphasizing that “it is no longer possible to stop crypto asset trade,” the committee recommends integrating crypto into the country’s financial system, allowing financial institutions to directly offer a range of crypto products, including derivatives, listing bitcoin on the country’s stock exchange, and more.

Also read: Regs Roundup: SEC Actions, Crypto Tax-Free in Korea, New Chinese Laws

Presidential Committee Pushes for Pro-Crypto Measures

The South Korean Presidential Committee on the Fourth Industrial Revolution, directly under the president, has proposed a number of pro-crypto measures to the government. The committee urges the government to integrate cryptocurrency into the country’s financial system, thus allowing financial institutions to directly handle and offer a wide range of crypto-focused products. The proposals are outlined in a document the committee recently published.

Among the recommendations are allowing financial institutions to offer their own crypto-related products, such as bitcoin derivatives, “as a medium- and long-term strategy for the institutionalization of cryptocurrencies,” Business Korea reported on Jan. 6, elaborating:

The commission advised the Korean government to allow financial companies to release futures products based on bitcoin prices, as the U.S. financial authorities did.

Besides launching bitcoin derivatives in South Korea, the presidential committee suggested listing bitcoin directly on Korea Exchange (KRX), the sole securities exchange operator in the country.

The U.S. Commodity Futures Trading Commission (CFTC) has approved several crypto derivatives products. The CME Group has been offering BTC futures and is scheduled to offer options on BTC futures on Jan. 13. Bakkt, a digital asset platform powered by Intercontinental Exchange Inc. (ICE), the parent company of the New York Stock Exchange (NYSE), began offering physically-settled bitcoin futures in September 2019. In December, the platform launched an option on bitcoin futures. In the same month, another regulated platform, Erisx, launched its physically-settled bitcoin futures. Ledgerx is another regulated platform that has been offering bitcoin options trading.

Other Recommendations

The presidential committee further advised the government to introduce business licenses or guidelines for crypto exchanges, citing initiatives by the financial authorities in the U.S. and Switzerland. To avoid relying on foreign custodians in the process of handling crypto assets, the committee was quoted as saying:

Participants in the traditional capital market such as securities firms and banks should develop and introduce domestic custody solutions to handle crypto assets so that the Korean crypto-asset custody market will not depend on foreign countries.

“The Korean government has to gradually allow institutional investors to deal in crypto assets and promote over the counter (OTC) desks dedicated to institutional investors’ trade,” the committee continued. In addition, the committee proposes unifying different crypto-related terms such as cryptocurrencies and virtual currencies into crypto assets. Business Korea conveyed:

As of May 2019, daily crypto-asset trade hit more than 80 trillion won (about US$69 billion) in the world, so it is no longer possible to stop crypto asset trade.

Prior to releasing the aforementioned document, the committee had urged the government to quickly establish the legal status of cryptocurrency in order to proceed with tax and accounting measures. In October 2019, the committee said that the government’s current policy of focusing on curbing crypto speculation has reduced the country’s global competitiveness in the blockchain and crypto areas. The legal status of cryptocurrency is needed to amend the country’s tax law, the Ministry of Economy and Finance clarified last week. Until the tax law is amended, crypto profits are not taxable in South Korea, the ministry confirmed.

What do you think of the South Korean presidential committee’s recommendations? Should the government implement these measures? Let us know in the comments section below.

Images courtesy of Shutterstock and the South Korean Presidential Committee on the Fourth Industrial Revolution.

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