Deputy Prime Minister and Minister of Strategy & Finance Kim Dong-yeon remarked on January 31 that the South Korean government is not planning to oppress or drive out virtual currencies, even hinting that virtual currency exchanges can be incorporated into the institutional system. He also mentioned that the Ministry of Strategy & Finance will act as a control tower when it comes to matters related to virtual currencies.
“The Financial Services Commission formed a task force related to virtual currencies two years ago and the Ministry of Strategy & Finance has participated in the task force as a key member,” he said, adding, “There are many opinions that the ministry should be in charge of the matters given taxation and so on and the ministry will discuss the matter with the Prime Minister’s Office.”
The South Korean government changed the competent authority from the Financial Services Commission to the Ministry of Justice early last month. Then, Minister of Justice Park Sang-Ki remarked that he would shut down virtual currency exchanges, causing a lot of controversy and a clash of opinions among ministries. Then, the government changed the competent authority again to the Office for Government Policy Coordination of the Prime Minister’s Office.
“The government is not against virtual currencies at all, but its task force is currently discussing some regulations so that the 27 virtual currency exchanges in South Korea can be properly regulated by relevant laws not limited to the Act on the Consumer Protection in Electronic Commerce, Etc.,” he went on to say, continuing, “When it comes to taxation, the result will depend on how the nature of virtual currencies is defined.”