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Bithumb Partners with Chainalysis as South Korea Scales up Regulations

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Blockchain forensics firm Chainalysis announced on March 10 that it will partner with South Korea-based cryptocurrency exchange, Bithumb following the successful passing of new crypto-currency laws in South Korea.

Bithumb will use the Chainalysis Reactor Inquisition tool to monitor skeptical activities on its platform. The main reason for Bithumb’s latest move is to keep up with the most recent amendment to the Special Financial Transactions Information Act.

The Korean Government is accelerating the imposition of digital currency taxes following the adoption of the amendments by the National Assembly. According to the Financial Services Commission (FSC), the revised regulations require cryptocurrency firms to implement anti-money laundry measures to ensure that individuals use their real names in the same way as traditional banks.

In addition, the new regulations will provide the Korean tax authority with a foundation to create a legal framework for the taxation of digital assets. As a result, exchange firms will be obliged to provide the authorities with details of their customers and their records of purchases for tax purposes.

Korean exchanges to comply with new regulations by 2021

The South Korean government intends cryptocurrency exchanges to fully implement the new requirements by September of next year. Some provisions of the revised act can take up to 12 months to be fully implemented. The new apparatus could take another six months to come into effect.

According to Thumb’s head of compliance, Sungmi Lee, the lawmakers may further strengthen the rules in the future. He argued that the exchange expects much tougher regulations, and therefore needs to be armed with sufficient support before that. Korea’s exchange companies are required to report their activities to the country’s financial authorities. They are required to obtain the real name of the user from banks in the country. Failure to comply will result in an exchange being fined up to $42,000 in fines or a prison term of up to five years.

Additionally, the law requires all the exchange firms to have their infrastructure attested by Korean Internet Security Agency (KISA). Currently only four exchanges have completed the expensive and time-consuming KISA certification. Bithumb, Upbit, Coinwon, and Korbit are among the companies to have obtained this award.

Chainalysis to help Bithumb Strengthen its AML and CFT Practices

According to the chief revenue officer at Chainalysis, Jason Bonds: 

“As cryptocurrency use in South Korea continues to grow, new regulations such as this will make blockchain analysis solutions like Chainalysis vital for compliance.”

The high number of hacks in the country last year on cryptocurrency exchanges; called for the need for the government to introduce measures, in particular, to increase transparency. As a result, Bithumb aims to improve their AML and counter terrorism financing (CFT); with the support of the Government’s Chainalysis Reactor tool ahead of such initiatives.

South Korea is among the countries that have recently revised its domestic digital assets regulations to ensure they meet the standards set by the Financial Actions Task Force (FATF). During the past couple of days, Switzerland, South Korea, Singapore, The United Kingdom, Ukraine, Hong Kong, Dubai and Japan; have all amended their domestic cryptocurrency guidelines to meet the standards laid down by the G7’s FATF.

South Korea Approves Landmark Cryptocurrency Legislation Bill in the Midst of Coronavirus Spread

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Multiple countries across the globe have started to take cryptocurrencies seriously or at least have taken a deeper interest in blockchain technology. The Asian market has been a surprising pioneer in the digital asset industry, with regions like China and South Korea serving as torch holders.

South Korea went all-in on crypto this Thursday when the government announced that they will be passing a new law to legitimize cryptocurrencies in the country.

According to reports, the National Assembly of South Korea passed the Special Financial Information Law which would require local cryptocurrency exchanges to comply with the Financial Action Task Force [FATF] guidelines.

The groundbreaking bill was welcomed by cryptocurrency supporters as a step in the right direction towards global adoption. South Korea revealed that the law was delayed because of the widespread takeover of Coronavirus in the country.

Supporters of cryptocurrencies in South Korea were quick to comment that government recognition would only speed up development processes. Sunga Kim, President of the Blockchain Association of South Korea, argued that both existing and new investors should consider the industry as legitimate.

She is also part of Hanbitco, a famous South Korean exchange that would surely have loved a new state update. Ms. Sunga Kim added that the legislation would allow the crypto exchange market to avoid poor public perceptions of fraud and malpractice.

The new law will also make it mandatory for exchanges to be licensed by the Financial Services Commission[ FSC] and the Korean Internet and Security Agency[ KISA] to cater to Korean citizens. The major focus of the community will be to reduce the number of scams that exist in the cryptocurrency industry. Reports have only shown that in the past years, the frequency and intensity of fraud have only increased.

Exchanges will need to obtain something called the International Security Management System [ISMS]. This will be provided by the KSIA so as to comply with all clauses in the Special Financial Information Law. Currently, six exchanges hold the ISMS license from KISA. The six exchanges were UpBit, Bithumb, Coinone, Korbit, Gopax, and Hanbitco.

These developments come at a time when the country has been hit severely by the Coronavirus. The pandemic has affected thousands of citizens with the fatality rate climbing rapidly. The country is the few places where the virus has spread, whereas countries like China were reporting a drop in the rate of people affected. Korea is also set to witness its parliamentary elections in April and only time will tell how the country will hold up till then.

 

South Korea Ponders Over Imposition Gradual Income Tax On Cryptocurrencies Within Country

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Asia has become a burgeoning market for the cryptocurrency industry, and countries like the United States have become wary of it. South Korea, one of the countries active in the cryptocurrency industry, has recently proposed new laws on digital assets.

Tax experts in the country talked about how digital assets need to be taxed on the basis of the country’s projected growth rate. This was discussed in a recent public seminar in South Korea.

Officials of the Korean Tax Policy Association recently argued that profits derived from crypto trading should be taxed on transfers of income.. According to them, the transfer income defined by the Income Tax Act must also include cryptocurrencies. They added:

“Still, related laws are still absent and the taxation infrastructure is still insufficient to cover cryptocurrencies and, as such, some supplements need to be added on the expense calculation side.Acquisition costs need to be clarified for transfer income tax imposition, but cryptocurrency acquisition costs are hard to clarify because the currencies are traded in various exchanges and related information and data are restricted,” it said, adding, “Infrastructure needs to be established after case-by-case trading tax imposition”

Korea is one of the governments that believed that taxing cryptocurrencies would make it harder for people to misuse it. The country’s crypto tax laws are expected to be revealed in the second half of this year. The experts argued that the taxation of income should be possible after the application of the tax on trade. This was expected to be done by starting the expense calculation improvement from the cryptocurrency acquisition costs.

Seoul has seen crypto as a driving force in the economy of the future and has done everything in its power to integrate with the decentralized industry. During one of the events co-chaired by the Korea Blockchain Association, speakers sided with laws proposed by the government. Back then the agency had mentioned a flat tax rate of 20 percent on cryptocurrency holdings.

South Korea has also put in the effort to supervise cryptocurrency exchanges more carefully. The country’s decision was based on several cases where millions worth of assets were looted from cryptocurrency exchanges. Countries such as Japan, the US, and the UK have urged Seoul to implement the crypto tax laws soon.

Although the directives have been identified, sources close to the government have suggested that it may take up to a year before the new law comes into effect. Until then, the government has intended to find more ways to make the fintech world healthier and more available to all.

South Korean Exchange Announces Closure And Returns Thousands of ETH Tokens

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Since the coming and going of the 2017 crypto-currency bull run, crypto-businesses, as well as projects, have found it hard to survive if not completely wiped out.

This phenomenon was again put on display when Content Protocol, a Korean cryptocurrency company announced its closure. The Startup focused essentially on content exchange and the lack of business opportunities and regulatory uncertainty killed any chance of its growth. One of the biggest highlights of the shutdown was that the Contents Protocol decided to refund its assets to the investors.

Contents Protocol will refund its investors, distributing just under 27,000 ETH on a pro-rated basis. These were the total holdings of the company before it decided to announce its shutdown. The startup is barely 2 years old and had made news in December 2018 by raising $10 million in Ethereum during a token sale. The official announcement from Content Protocl stated:

“We inform you that due to continued regulatory uncertainties in cryptocurrency and lack of business prospect, we have decided to end our project. Based on the legal opinion and advisory from law firms in Korea and Singapore, we will convert our remaining assets to ETH and distribute it on a pro rata basis to CPT holders who have requested ETH compensation until specified date.”

Contents Project was made to collect consumer data from Korean platforms such as WATCHA PLAY and WATCHA to create a better content ecosystem. In this way, the company plans to rewards the users for its data with its native token Contents Protocol token [CPT].

The US SEC has been involved in the case of multiple cryptocurrency companies. Earlier in 2018, Pantera Capital estimated a quarter of the ICOs it invested in could be sent back to their original backers.

South Korea Is About To Levy a 20% tax on Cryptocurrencies

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South Korea’s cryptocurrency regulation has seen tremendous developments in the last 2 years. However, Park Yong-jin, a member of the national policy committee from the ruling Democratic Party, brought in the first-ever taxation bill in South Korea.

The Ministry of Economics and Finance recently ordered the department of income tax to start reviewing the cryptocurrency taxation plan as per the report published by one of the local South Korean news channels, Pulse. South Korea’s government is planning to impose a 20% tax on all the income generated from Cryptocurrencies. 

Nevertheless, the income tax department will likely consider all the income generated by Cryptocurrencies as ‘Other Income’ instead of ‘Capital Gains’. Interestingly, this news has brought a healthy amount of consideration in the Korean Expert community.

If implemented, all the Cryptocurrency income will come under the banner of ‘Other Income’. The income tax department will collect a 20% tax on 40% of the total income. The rest 60% comes under the band of tax deduction.

Reportedly, the government is yet to finalize the working procedure. But, it is for sure that income generated with Cryptocurrencies will be labeled as ‘Other Income’. Earlier it was considered as capital gains.

The National Tax Service (NTS), the Korean tax authority, is supposedly waiting for a green signal from the government authorities. Once levied, they will be allowed to start imposing a tax on Cryptocurrency gains on an immediate effect.

Consequently, Bithumb, a South Korean Cryptocurrency Exchange, was asked to pay $69 million as a tax by NTS. This was the first of its case where NTS levied the taxation on Cryptocurrency gains under the label of other income.  More so, Bithumb is planning to take the authorities to court for negating the amount inflict on them by NTS. They are in the mood to nullify the tax. 

Meanwhile, the Korean authorities have started marking gains earned by the immigrants from virtual assets as the source of ‘Other Income’. They have been actively collecting the tax indirectly at the time of any exchange of Cryptocurrency.

It is now a game of curiosity about what the government decides and how NTS will shift its gears. 

South Korea sides with silver as fiat industry fears downturn

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The cryptocurrency market’s fluctuations have been dependent on various factors, and the current atmosphere has been subject to massive scrutiny from across all quarters. The fiat and the precious metals industry have also been going through subtle changes with South Korea becoming a popular hub for Silver.

Refinitiv Metals, an organization part of GlobalTrading recently commented on the silver bull run by tweeting:

“South Korean’s investment demand for silver has picked up right from the beginning of the year, as the confirmation of the Federal Reserve’s interest rate policy in January instigated a silver rush throughout the first three quarters of this year, increasing by over 75% YoY.”

In terms of tonnes traded, the second quarter of 2019 has been the most productive since the first quarter of 2013. The first quarter of 2013 started with sales reaching 3.5 tonnes, a figure that has rocketed up to 6.5 tonnes during the current market atmosphere.

According to the charts, the final quarter of 2017 was when the sales diminished to its lowest, which was around 2.2 tonnes.  The current market situation (especially after the US Fed’s decision to print over $200 billion in currency) is dire, and precious metal trade has never looked more lucrative.

During the publishing time, Silver was trading for 45453 on the MCX silver index. Silver and gold were one of the few commodities that have held up stronger than the fiat market as well as some cryptocurrencies. Silver’s performance was also noted by significant investment banked James Turk, according to whom:

“Gold and silver are close to an upside breakout, but it may take a few more days. $1490 and $17.50 are acting like a magnet. When they finally hurdle $1500 and $17.75, I expect that the precious metals are off to the races.”

While precious metals have been ruling the roost, the cryptocurrency market is not too far behind. Bitcoin, the world’s largest cryptocurrency, received an excellent start to the week as it came out of its price slump to trade for $8246.51. The market cap had also risen to a decent $148.47 billion, with a 24-hour market volume rate of $15.51 billion.

Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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Ripple to widen fintech service into South Korea via MoneyGram’s new partnership

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Ripple partner MoneyGram joined hands with a money transfer firm based in Korea, Sentbe. Following the partnership, Sentbe has announced itself as a partner of Ripple as well.

Ripple Partner MoneyGram Signs New Partnership with Sentbe

MoneyGram, which is a financial service company, has recently received a massive fund as an investment from Ripple. As the oldest partner of Ripple, MoneyGram extending Ripple solutions among its new partners such as Sentbe. According to the reports, Sentbe is a South Korean payment startup and a regional operator of Samsung. Nevertheless, the firm officially announced on its website, stating “Sentbe partners with world-class fintech.”

Concerning the partnership between MoneyGram and Sentbe, MoneyGram head of APAC and South Asia, Yogesh Sangle states that;

“Enhancing our product offering in South Korea is a strategic move that accelerates our digital transformation in the region. With an increasing number of foreign residents and growing numbers of working populations from neighboring Asian countries, working with Sentbe will further improve financial inclusion in South Korea and we are proud to share a legacy of customer commitment through this collaboration.”

Following the similar note, Sentbe CEO, Alex Choi appreciates the partnership and quickly remarked that the partnership with MoneyGram put them into “even better position to meet the demand for tech-savvy solutions within this space.” He says that they’re further looking forward to spreading the change this partnership can bring to the respective community.

“Innovation that simplifies the money transfer process is our top priority and there is not a more perfect time than now to embark on this move with MoneyGram.

What’s Next?

As per the press, Sentbe is keen at improving the cross-border money transfer at cheaper, faster, and easier via new technology. Following the partnership announcement, Ripple’s technology might be set to use at Sentbe. Also, the company is already a licensed financial institution based in South Korea, which is one of the prime purposes of Ripple.

The partnership received enormous interaction from the XRP community. Subsequently, a Twitter user and a member of XRP community, Dillon tweeted a screenshot, adding;

https://twitter.com/Dillon/status/1152335171720482819?s=19

The closer observation of Sentbe is also revealed that it is Samsung’s payment arm, Samsungpay has opted Sentbe to pilot a remittance service on Samsung Pay in 17 countries. Earlier in this year, CEO of Sentbe expressed his view of collaborating with Ripple.

While MoneyGram and Sentbe have quickly validated the authenticity of the partnership, Ripple has yet to confirm and make the statement on the same.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.

South Korea becoming a Hotbed for Crypto Activities

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Only a few indeed saw it coming. The crypto ‘virus’ is spreading and fast.

When cryptocurrency came to existence, almost a decade ago, only a few had an interest. It would be right to say that nearly 99% stayed far from the blockchain technology.

But, what’s the current state?

The story has changed dramatically; what a difference ten years can make. The ”virus’ of adopting and investing in cryptocurrency is rapidly growing, and nowhere that’s happening better than South Korea.

The Richest are Investing

Everyone will want to place their money where their mouth is, and that’s not different from what the richest in South Korea are doing.

The country is now considered the hotbed for the cryptocurrency activity. The reason is simple; the number of companies and individuals alike investing in cryptocurrencies is rapidly growing with no signs of stopping.

A while ago, we already witnessed significant companies in the country, getting into the cryptocurrency industry. Some of them include internet giant Kakao, Samsung, Hyundai, and many more.

And now, another billionaire follows suit. Chey Tae-won, chairman SK Corporation, and the country’s seventh-biggest billionaire entrepreneur has now shown interest in blockchain technology and token economy.

As a result, according to a local news outlet Chosun, the interest from Chey has led to a decision for a subsidiary of SK Group to invest in a crypto fund that is created by ConsenSys.

Chey’s net worth is approximately evaluated to be around $2.6 billion as we write this post. He was formerly also responsible for securing funds for building Ulsan Grand Park, which is the largest urban park in the country.

It’s yet not clear on the amount of capital that SK will throw into ConsenSys. However, rumor has it that a total of $90 million is in the ranks.

Confidence Skyrocketing

Chey might have expressed his interest back when he attended the recent SparkLabs Demo Day 2019, and also during his reported meeting with Lubin, CEO of ConsenSys, the issued might have been the center of discussion.

The increasing number of major companies as well as the wealthiest folks dipping into cryptocurrency will only raise the confidence of the local investors to get into the business. It comes after a plethora of them were heartbroken from the bitcoin plunge to $3,150 from the all-time high of $20,000 in 2017.

Nevertheless, South Korea is rapidly growing alongside the crypto industry, with several getting into cryptocurrency every day. Busan, the country’s second-largest city, is even planning on creating a local cryptocurrency in collaboration with the BNK Busan Bank.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.

Upbit Enables Nonprofits to Sell Crypto in Korea Legally

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Key Takeaways:

  • Upbit enables the first KRW-based virtual asset sale by a domestic non-profit, World Vision.
  • The move aligns with recent regulatory reforms encouraging institutional participation.
  • Full corporate participation, including listed firms, is expected in the second half of the year.

The age of virtual asset transactions by corporations is formally underway in South Korea. Non-profit groups have had access since June 1 to sell virtual assets under a new policy that is underpinned by regulator and industry coordination.

Upbit, one of the country’s top cryptocurrency transaction platforms operated by Dunamu, took center stage in this move, facilitating the sale of international NGO World Vision-owned Ethereum.

World Vision exchanged 0.55 Ethereum, which was donated, into Korean won through Upbit’s KRW market, which was an important milestone in integrating virtual assets into mainstream finance systems. When converted to Korean won, this is equivalent to approximately 1.98 million won.

This step was possible following February’s policy announcement titled Roadmap for Corporate Participation in the Virtual Asset Market, which now enables eligible non-profits and exchanges to engage in controlled asset liquidation.

Upbit Leads the Way in Institutional Access

The transaction signals Upbit’s broader strategy to align with regulatory developments and extend services beyond retail users. With nonprofit organization support already in place, Dunamu is prepping for greater corporate engagement in the next policy phase.

The company plans to provide seamless onboarding and operational support to listed companies and professional investment organizations as soon as the permitting of real-name account issuance takes place in the second half of the year.

This gradual institutional opening is considered a major milestone in South Korea’s digital finance ecosystem. The infrastructure of Upbit, previously piloted with non-profit organizations, will presumably provide a foundation for broader use throughout the business world.

Dunamu states that its implementation approach revolves mainly around adherence to financial regulations and provision of clear support for transactions.

A Campaign-Driven Milestone

World Vision converted the Ethereum it raised in a March campaign with Dunamu. The campaign was on providing basic school supplies for underserved youth and showed how great digital assets are in advancing meaningful social efforts.

With successful liquidation and conversion of funds, the campaign fulfilled not only its philanthropic objectives but also acted as a proof of case for virtual asset-based donations and corporate engagement in the future.

With the evolution of regulatory and technological frameworks, South Korea’s virtual asset market will gradually shift from an impulse-based trading landscape to a deeper, more institutionalized financial space.

Related Reading | Ethereum Whales Accumulate $37.17M as Price Struggles at $2,600

RedotPay Aims at Korean Payment Market With Crypto Card Push

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  • RedotPay launched Visa-compatible crypto cards in South Korea, providing users with both physical and digital formats.
  • RedotPay supports real-time stablecoin payments and Apple Pay, challenging existing Korean payment norms.

RedotPay, a fintech firm based in Hong Kong, has introduced cryptocurrency-powered payment cards in South Korea, directly entering a market traditionally led by credit card corporations and mobile payment providers.

The Korea Economic Daily confirmed on Friday that both physical and virtual crypto debit cards issued by RedotPay function at all South Korean merchants accepting Visa transactions. Customers can secure a virtual card for $10 or opt for a physical card priced at $100. The registration process demands only basic verification, including name, address, and identification.

Reports circulating on social media indicate Korean users already have access to the cards. An individual identified as “Blippi” shared on X that users can activate the card immediately on a smartphone without needing a physical card, simply by verifying identity at the time of issuance.

RedotPay’s Core Card Features

The RedotPay card supports major cryptos including Bitcoin and Ether, as well as stablecoins. Cardholders can fund their accounts with crypto assets drawn from multiple blockchain networks, including Solana, Polygon, Binance Smart Chain, Tron, and Arbitrum.

A key feature lies in the real-time stablecoin payment and refund process. Each time a purchase occurs, stablecoins leave the user’s wallet immediately. In the event of a canceled transaction, refunds in USDC or USDT reach the user within minutes.

RedotPay also benefits from being compatible with Apple Pay in Seoul. At the moment, Apple Pay access in South Korea is mostly restricted to Hyundai Card users. By supporting Apple Pay, RedotPay could use this limitation as a way to compete with the current payment infrastructure.

Kim Yong-beom, chief executive officer of Hashed Open Research, shared insights into the card’s potential impact. “The stablecoin-based card allows its users to possess and spend US dollars without paying exchange fees,” Kim said. “This could upend the payment market at home and abroad.”

Crypto’s Growing Role in South Korea

RedotPay’s launch of crypto cards comes at a time when interest in cryptocurrency is rising in South Korea, fueled by increasing political attention. Reports indicate that over 16 million people in the country own digital assets, making cryptocurrency a key issue in the 2025 presidential race. 

The ruling People Power Party unveiled a crypto policy agenda in late April. The plan includes approval of spot crypto ETFs, elimination of the one-exchange-one-bank requirement, and creation of a regulatory structure for stablecoins. Such initiatives signal wider acceptance of digital assets within South Korea’s financial system.

Building on this momentum, RedotPay now enters a competitive payments sector by offering crypto-enabled cards. The new product may attract consumers seeking alternatives to traditional banking methods, as public interest in cryptocurrency continues to expand alongside policy developments.

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