South Korea is now undergoing regulatory measures in the cryptocurrency market. Meanwhile, the deadline for including cryptocurrency revenues in tax forms, which is set for January 1, 2022, is rapidly approaching. It has been a controversial topic since the Democratic Party, which has the majority of seats in Congress, planned to push the law through in 2023.
Affecting Taxes In A Dynamic Way
According to recent reports, the K-pop group BTS has emerged as a political “dynamite” in the ongoing tax dispute.
Recently, senator Noh Woong-rae questioned whether the tax legislation might be amended to accommodate prospective NFTs by BTS, citing current flaws in the tax framework as justification. It was he who stated,
As a result, BTS is creating news on the internet, just like every other day. According to claims, the Army Coin & Bitget exchanges attempted to cash in on the band’s cult following by offering cryptocurrency in return for it. The BTS fans are referred to as the “ARMY” by members of the community. One of the issues is that, according to reports, the exchange utilized the group’s photograph to advertise the offering.
However, BTS’s management organization, Hybe, denies any connection to Army Coin.
The Euphoria Caused By NFT
Furthermore, the K-pop group has formed a partnership with Upbit, the cryptocurrency exchange operator, to distribute its (NFT) non-fungible token products. Upbit just received an exoneration on its own KYC report from the South Korean regulator, which falls within the framework of the regulatory squeeze outlined before. Meanwhile, a total of 27 other cryptocurrency exchanges & 13 operators are currently under investigation.
According to estimations, Upbit demands over 80% of the share of the market based on transaction size & volume, and it continues to have a dominant position in the industry while doing so.
‘Kimchi Premium’ Scams
With the exception of the crackdown on cryptocurrency rules, South Korea has already been proactive in dismantling scamming networks. Several arrests have been made recently by the National Police Agency’s Cybercrime Investigation Unit. Three people were apparently detained for arranging a “kimchi premium” scam, according to media reports.
The so-called ‘Kimchi Premium‘ investment, in which cryptocurrency traded within Korea is valued greater than cryptocurrency sold elsewhere, is often utilized as a get-rich-quick gimmick. Scammers entice investors with the promise of rapid gains by purchasing virtual currency on international exchange and then selling it on a local platform.
According to the nation’s police, 38 individuals have been charged by the investigating agency, but there are an estimated 470 victims who have fallen victim to similar scams around the country. According to reports, a large number of elderly people have also suffered financial losses, with a total loss of 2 billion earned recorded.