South Korea said on Wednesday it may tax capital gains from cryptocurrency trading of virtual coins , the government said after an emergency meeting in Seoul. It will also ban minors from opening accounts on exchanges, Reuters reported.
To be eligible, exchanges in South Korea will need to uphold investor protection rules and disclose all bid and offer quotes.
The measures need parliamentary approval. Seoul will maintain a current ban on all financial institutions dealing virtual currencies.
“The regulations in Korea will not have a negative effect,” said Thomas Glucksmann, head of marketing at Hong Kong-based exchange Gatecoin.
“Licensing brings certainty, which encourages already regulated entities ... to get involved in addition to skeptical retail investors,” he added.
In an interview with Reuters on Tuesday, the Seoul-based operator of the world’s busiest virtual currency exchange Bithumb, said it will fully comply with potential regulations from the South Korean government and adequately capitalize itself to protect its clients.
Bitcoin-related shares in Seoul slumped in early trade on news of the government’s emergency meeting, before rebounding as the statement did not mention harsh restrictions.