South Korea has had mixed opinions about cryptocurrencies. But newest developments may suggest a change in the tone of the authorities of the country relating to cryptocurrencies. The country is expected to approve a cryptocurrency fund in the country.
A local newspaper reported South Korea’s insurance behemoth Hanwha Life Insurance’s asset management subsidiary is proposing the launch of a cryptocurrency related fund. The subsidiary Hanwha Asset Management expects the Financial Supervisory Supervisor to approve the crypto fund by May 2.
South Korea has a ban on funds that invest directly in cryptocurrencies and listed securities. Hanwha’s crypto fund will invest indirectly in the cryptocurrency sphere through investment in mining companies and exchanges. The fund is also being dubbed as a “Digital Hero” in the country as it is designed to give cryptocurrency exposure to investors.
The country had been vocal about the problems the cryptocurrencies have been causing in the country like money laundering and tax evasion. A crackdown had also been launched on cryptocurrencies with instructions of strict monitoring of crypto transactions. Furthermore, the country has also imposed laws to strengthen its grip on the cryptocurrency sphere. One of the new regulations imposes that accounts on cryptocurrency exchanges to be based only on real names. While another law has set to be imposed in the next year suggests a 20% capital gains tax on cryptocurrency profits.
The new prime minister nomination of South Korea is believed to be not as harsh on cryptocurrencies as the current regime. The prime minister nominee, Kim Boo-Kyum, had ensured masses that there will no victim of the new 20% capital gains tax on cryptocurrency profits. However, the prime minister nomination has also tried to maintain a neutral stance.