[Weekly Blockchain] Major Blockchain News in the 1st Week of June, 2024
Hello, this is the LEDGIS Team.
Did you all have a good week?
This week, there has been a lot of news in the blockchain market related to the ‘’Virtual Asset User Protection Act.’
Let’s find out together what these contents are through [Weekly Blockchain]!
For detailed information on each news item, please refer to the respective articles.
👉 No worries about Cryptocurrency deposits! … Even if the exchange goes bankrupt, it won’t matter.
According to Maeil Economy, cryptocurrency users will be able to recover their deposits even if cryptocurrency exchanges go bankrupt in the future.
Cryptocurrency operators are now required to separate user deposits from their own assets and entrust them to banks for management.
However, the protection limit for deposits of Cryptocurrency users has not yet been determined.
The “Virtual Asset User Protection Act,” containing such provisions, will come into effect from the 19th of next month.
👉 Even a brush with coins is not allowed… Financial authorities issue a ban on holding Virtual Asset.
According to Seoul Economic Daily, ahead of the enforcement of the ‘Virtual Asset User Protection Act,’ the Financial Services Commission(FSC) has issued a ban on coin holdings for its officials.
According to financial authorities on the 4th, the FSC has implemented the ‘Guidelines on Restrictions on Virtual Asset Holdings by FSC Officials’ since the 29th of last month.
Officials who hold positions with restrictions on virtual asset holdings or are affiliated with restricted departments are not only prohibited from holding virtual assets, but also face disciplinary actions or other measures if they violate this rule.
Even if virtual assets are acquired through inheritance or gift, they must be reported within 10 days and sold within one month. Additionally, officials are prohibited from acquiring virtual assets for six months after transferring to a new department.
👉 Will the virtual asset version of Dart be opened?··The government is promoting it
A system for integrated management of virtual asset disclosure information is expected to be established under government leadership.
According to a government official on the 5th, the FSC recently reported to the National Assembly the results of a research service on the ancillary opinions of the ‘Virtual Asset User Protection Act,’ which includes the establishment and operation of an integrated disclosure system for virtual assets by a public institution, Decenter reported.
The industry has consistently argued that a system similar to DART, operated by the Financial Supervisory Service, is needed for virtual assets, allowing easy access to disclosure information and changes in virtual assets issued by issuers.
It seems that the specifics of the integrated disclosure system will begin to take shape through discussions on the second stage of legislation.
There is speculation that the plan proposed by the FSC for a public institution-led disclosure system will be accepted if there are no major issues during the second stage of the legislative process.
👉 “Virtual asset taxation” has emerged amid controversy over financial investment income tax. Will it be implemented next year?
According to The Economist, the ‘22nd National Assembly Legislative Policy Guidebook’ published by the National Assembly Legislation and Research Service on the 5th suggested that the implementation of a ‘virtual asset income taxation system’ is one of the policies requiring legislative discussion in the economic and industrial sectors of the 22nd National Assembly.
The virtual asset income taxation system is a scheme where income generated from the transfer or lending of virtual assets is reported as miscellaneous income and taxed separately at a rate of 20% (including local taxes, making it 22%) for income tax.
The issue pointed out by the Legislation and Research Service is that while the government is currently pursuing the abolition of financial investment income tax, there needs to be clarity on whether virtual asset income will also be taxed starting from 2025.
Since the issue of virtual asset income taxation shares many similarities with financial investment income tax, there is an opinion suggesting that they should be discussed and coordinated together to determine whether and when to implement them.
That’s all for this week’s news.
We’ll be sure to bring you more updates through [Weekly Blockchain] next week, so stay tuned!
See you again next week!
