Korea limits individual crypto borrowing to current holdings, enforcing new regulations to protect investors and curb excessive leverage.
Financial regulators have to establish the correct rules and infrastructure for the adoption of crypto assets, said the International Monetary Fund (IMF) Managing Director Kristalina Georgieva during an international conference on Thursday.
Korea jointly issued a statement Friday supporting a new international framework to automatically exchange information on crypto-asset transactions to ensure tax compliance.
Companies that hold or issue crypto assets will be required to publicly disclose the related details starting next year.
The bankruptcy of FTX has hit Korea as Korean investors suffer losses and other cryptocurrencies fall in sympathy with FTX's FTT coin.
Virtual assets may in some cases be securities, the governor of the Financial Supervisory Service (FSS) suggested on Thursday.
Former prosecutors have gotten big appointments by the administration of President Yoon Suk-yeol, a career prosecutor, and the finance industry is no exception.
The capitalization of cryptocurrencies traded on Korea's crypto exchanges was 55.2 trillion won ($46 billion) as of Dec. 31 last year, higher than the market caps of most listed companies.
Businesses dealing with virtual assets including cryptocurrencies must report their transactions to a government body and abide by anti-money laundering requirements, the Financial Services Commission (FSC) announced Tuesday.
Korea JoongAng Daily Sitemap
