In the 2021 Global ETP international conference, Sohn Byung-doo made the statement that the digital asset industry is not much different from the stock market. Hence the importance of the South Korean administration to protect investors and control the stability of transactions.
Sohn Byung-doo who is the CEO of Korean Exchange (KRX) noted that Bitcoin and other crypto assets are still not enshrined in regulation as is the case in the traditional financial sector. What's more, the number of crypto investors in South Korea has recorded a huge increase which is estimated at around 5 million users. In addition, the daily trading volume is increasing rapidly and is not much different from the daily trading volume of the stock market.
Based on the data, the daily market volume of Korean crypto assets is around $ 12 billion, while the Korean composite index, KOSPI, is slightly more than $ 16 billion. Therefore, he urged the national administration to study, explore and at the same time accept the crypto industry which is now growing rapidly. At the same time he called for the implementation of proper rules that will help institutionalize asset classes.
“Now is the right time for the local (South Korean) exchange to compete with overseas exchanges” - Sohn.
Recently, South Korea’s Finance Ministers announced their decision to defer cryptocurrency profits for a period of time. Based on amendments approved by the authoritative body, the crypto tax law is scheduled to take effect starting January 1, 2022.
The early announcement of the crypto profit tax has sparked great debate among the market and influenced the behavior of investors. South Korea previously proposed to impose a 20% tax on profits of crypto assets in excess of $ 2,100. This has sparked outrage among market players at the time.
They argue that crypto investors are taxed more than stock investors. Second there is no regulatory framework that protects investors.
