South Koreas young and old are actively jumping into the cryptocurrency market in search of get-rich-quick opportunities amid a myriad of unfavorable economic conditions in and outside the country.
Nearly 6 million people in Korea are active in the cryptomarket, one of the largest in the world, trading nearly 20 billion U.S. dollars per day.
The drastic growth and volatility of the cryptomarket has prompted the government to rein in sparking debate about the necessity and the scope of government regulations on cryptocurrency.
Cryptocurrency craze and government regulation It's the topic of our news in-depth tonight, let's talk about it.
Joining us in the studio is Dr. Jong goo Yi, Chairman of the Self Regulatory Committee at the Korea Blockchain Association.
Dr. Yi, it's great to have you on the show tonight.
The South Korean government recently announced a set of regulatory measures to oversee the volatile cryptocurrency market. It designated the Financial Services Commission, which you were once part of, as the key institution. What are the key points here?
In addition to the government measures several bills have also been proposed at the National Assembly to regulate the cryptomarket. What issues are the bills designed to address, and what are the biggest concerns surrounding those bills?
The government measures include imposing tax on capital gains from cryptocurrency transactions beginning next year. What are the pros and cons of taxing cryptocurrency transactions?
On the other hand, the Science and ICT ministry will help promote blockchain technology and foster related industries. So, the government is aiming to boost blockchain technology to better regulate the cryptocurrency market. Help us better understand.
U.S. regulators have also recently hinted at taking on a bigger role in the hyped-up cryptocurrency market. U.S. and South Korea have been seen as the more adaptive countries to cryto and its technology. These two countries are stepping up regulations. What are your thoughts? Still are there differences between the approaches by these two countries and how about compared with other major economies?
Authorities have called cryptocurrency as "intangible assets" and said that it was a misunderstanding to label them as currencies. In your perspective, can they be considered as "real assets"?
Chairman Lee Jong-gu at the Korea Blockchain Association's self-regulatory commitee for us tonight. Thank you.