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The South Korean congress is reportedly proposing to delay the commencement of a crypto income tax rule by three months to January 2022.

According to a report from South Korean media The Dong-a Ilbo on Wednesday, the National Assembly’s planning and finance committee has recently issued a report suggesting it’s necessary to consider implementing the crypto income tax rule from at least January 1, 2022. 

South Korea’s Ministry of Economy and Finance amended its tax code in July this year where it finalized a plan for charging local residents a 20% tax on gains from crypto trading that are worth more than 2.5 million Korean won, or about $2,000.

The government’s plan, which is subject to the approval from lawmakers in the National Assembly, sought to enforce the crypto income tax rule starting from October 2021.

The Dong-a Ilbo report said the reason why the National Assembly considers delaying the rule’s effective date is due to concerns raised by local crypto exchanges for not having enough time to build a proper tax reporting infrastructure. 

The report said because the ratified “Specific Financial Information Act” will be enforced from March next year, crypto exchanges must also complete a reporting system by September 2021 for having real names of deposit and withdrawal accounts. 

The report added that the tax subcommittee under the National Assembly is expected to decide on a specific taxation time next week. 

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Coinbase is discontinuing its margin trading product due to regulatory concerns.

The exchange announced the product will be fully offline in December, when all existing margin positions have expired, in a blog post Tuesday.

As of November 25 at 2 p.m. PT, customers will be unable to place new margin trades. Any open limit orders will be cancelled at that time as well.

Coinbase relaunched its margin trading services this year after suspending the functionality in 2017. A flash crash in the price of RTH led the exchange to discontinue margin until this past February, when it rolled out the service in 23 states. 

In 2017, the Commodities Future Trading Commission (CFTC) sent an inquiry to Coinbase about its margin service following the flash crash. Now, concerns about recently-released CFTC guidance are driving the exchange to shutter the services indefinitely, according to the blog post.

“We believe clear, common sense regulations for margin lending products are needed to protect and provide peace of mind to U.S customers,” said the blog post. “We look forward to working closely with regulators to achieve this goal.”

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About our panelists:

Glenn Woo – Managing Director, Head of APAC, Ledger Vault

Glenn joined Ledger in October 2018 and is responsible for overseeing all Ledger’s businesses in Asia Pacific. He has an extensive career in the financial services and technology industry, working for S&P Global Market intelligence as Head of Hong Kong, Taiwan and Korea, and Shinhan Financial Group as a consultant in asset custody and funds administration.

Jumpei Miwa – Assistant Commissioner, Innovation and Sustainable Finance in International Affairs, Financial Services Agency Japan

Jumpei Miwa – is Assistant Commissioner, Innovation and Sustainable Finance in International Affairs [Former Director of FinTech and Innovation Office], Financial Services Agency of JAPAN (JFSA). He launched the FinTech Innovation Hub in JFSA to facilitate further collaboration among various FinTech stakeholders, designing regulatory and policy responses around FinTech and digitalization. He has also extended the ad-hoc conference of “Blockchain Round-Table” [BCRT] initiated by JFSA for global participations from academia and developers as well as regulators, and laid out the base of blockchain stakeholders’ participation for “BG2C” [Blockchain Global Governance Conference]. He is also an initial contributor of “BGIN”[Blockchain Governance Initiative Network], which was established on March 2020 and creates an open, neutral platform for multi-stakeholder dialogues on blockchain. Before undertaking current position, he has contributed to various financial standard-setting activities in international fora including BCBS, IAIS, IOSCO, IASB and APEC etc. for more than ten year. Among others, he has undertaken the Chair of Joint Committee of Asia Regional Fund Passport of APEC and the Vice-chair of Solvency and Actuarial Issues Sub-committee in IAIS. In FSA, he has experienced various cross-sectoral regulatory and supervisory issues in several director positions from 2012 to 2017. He started his career in 1999 with the Export Import Bank of Japan and engaged in the structured finance in the area of large oil and gas projects in Asia and Middle-East etc.

SJ Oh – Director, Head of Custody and Prime, OSL

SJ comes from the world of investment banking where he spent 14 years as an equity sales trader. He has held the distinction of being both a Korea specialist and an Asia generalist at several brokerage firms, having spent the latter half of his career at Morgan Stanley. Currently he serves as Director, Head of Custody & Prime products sales at OSL, Asia’s largest digital asset prime brokerage.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Quick Take

• Joe Biden is expected to nominate Janet Yellen as the next Secretary of the U.S. Treasury Department.
• It’s possible a U.S.-centric CBDC will move forward or launch during her tenure.

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