[DEX] Exchange Profit Distribution Policy and Its Risk
This is IONIA :)
In this post, I’d like to talk to you about current exchange profit distribution policy.
There are now 100 exchanges in Korea, and they’re working on a variety of ways to survive the competition.
In this infinite competition, From the reduction of fees to the various incentives, there are policies that share their profits with users of the exchange.
The exchange ended up with a fee through the transaction.
They have to make it for many people because it makes the company’s profits.
So, to attract people,
Exchange-based tokens were issued, replacing commission revenues from exchanges with tokens, and distributing them to users.
When this policy came out, it was a very innovative system.
There were many people who could trade and make a profit.
but
This dividend policy is at the heart of the problem.
In this regard
A lawyer at the law firm said,
Some exchanges don`t seem to pay much attention to tax issues, said the existing legal gifts require the water vapor to report or pay taxes, while the gift bourse has a secondary duty of paying taxes if the water vapor is not able to pay. In other words, giving tokens to customers through training mining could be a gift.
also
Referring to Article 119 of the Capital Market Act, “In order to conduct the recruitment or sale of stock-type tokens giving dividends, they must be reported to the Financial Services Commission as well as received a repair (authorization),” he explained.
The Dividend Exchange token itself is a financial investment instrument and is therefore subject to investment contract securities. According to the capital market law, the exchange may require approval as an investment broker.
Yet this distribution of profits is not a perfectly legal issue.
In the current market for cryptocurrency, there are many things that are included in the blind spots of the law because the law was not enacted properly. However, these laws are currently actively being discussed and will soon be enacted and put within the legal framework. If so, policies that are included in the Capital Markets Act that distribute the profits of the exchanges and the securities companies associated with them will end up with a risk of government regulation.
Many exchanges are promoting profit from the dividend policy of the exchange. If you pay dividends that can be “gift” with a stock-type coin, it could be a problem someday.
Ionia DEX is creating a different policy.
We are making DEX within the legal boundaries of the law, so please look forward to it.
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