P2P crypto trading has hit a new all-time high in South Korea, according to data from LocalBitcoins. The jump in P2P trading comes at a time when there is a lot of regulatory uncertainty in the country.
Peer-to-peer cryptocurrency trading in South Korea is reaching all-time highs as regulators make mixed comments on regulation. Data from LocalBitcoins shows that more than 353 million Korean won were traded in the first week of November. This is a significant jump from previous weekly volumes.
Think about the crypto tax
The heightened interest in P2P trading comes as regulators work to implement a regulatory framework. South Korea, already one of the leading governments in regulating the cryptocurrency market, is doubling down on its bid to prevent illicit activity.
The high volume of P2P may be due to investors looking to get the most out of their capital as regulators slow down. Recent reports have indicated that there is some confusion among investors due to the lack of clarity surrounding the regulations.
One of the main issues is the implementation of crypto-taxation. The South Korean authorities have announced that they will tax the asset class up to 20%.
But lately reports have suggested that there may be a change or a complete repeal of this tax system. The tax law will come into force in 2022, although it is not yet known what form it will take.
The NFT regulations also throw more confusion into the mix, as the Financial Services Commission (FSC) said in early November that it would not subject the special asset to tax. However, later the organization’s vice president said tax arrangements would be made for DTVs.
Uncertainty still hangs over
At the moment, it’s unclear exactly what the regulatory landscape in South Korea will look like, given the lack of a conclusion so far. The South Korean opposition party challenged the tax regime and pushed for a postponement until 2023, demanding a more generous tax plan.
Exchanges are a major part of the industry under the microscope, as 2021 sees the first regulatory compliance certifications sent to them. Several exchanges had to close following a regulatory review.
As it stands, it’s unclear what the specifics of crypto regulation will be. However, it is almost certain that a framework will be implemented, and it remains to be seen whether or not it is more stringent than that of investors.
All information on our website is posted in good faith and for general information purposes only. Any action that the reader takes on the information found on our website is strictly at his own risk.