South Korea is a very important region when it comes to cryptocurrency. Local exchanges have successfully made a big name for themselves in quick succession. Unfortunately, the local government is planning to give Bitcoin a legal status just yet. More specifically, they deem Bitcoin is a commodity and not a currency. it isn’t the worst possible outcome, but still somewhat disappointing.
It isn’t entirely surprising to learn of this verdict. South Korea’s central bank pondered over Bitcoin’s status for some time now. More specifically, they had to decide if it was a currency or commodity. Sadly, it turns out BTC is a commodity in South Korea for the time being. It is difficult to call cryptocurrencies actual currency given the regulatory uncertainty. At least the form of money isn’t banned, contrary to how things are evolving in other parts of the world right now.
No Legal Tender Status for BTC in South Korea
A local news source touched upon this development late last night. bank of Korea governor lee Ju-yeol rejects the concept of accepting cryptocurrencies as legal fiat. This means local businesses are on their own if they decide to do so regardless. Nothing prevents them from accepting BTC payments for goods and services. However, the government will not protect them in that case. Again, no real surprise there, but still worth taking into account.
With Bitcoin being a commodity, an interesting situation is created. More specifically, it remains to be seen if BTC will be taxed or not. Right now, there doesn’t appear to be any indication of that happening in the future. Bank of Korea will take no further action regarding the regulation of cryptocurrencies. It will be interesting to see what the government comes up with moving forward.
None of this appears to hinder the popularity of Bitcoin in South Korea right now. Local exchanges still generate a lot of trading volume. It is doubtful that situation will change in the future. The crackdown on ICOs remains in effect, though, for the time being. It will be interesting to see how the cryptocurrency situation South Korea evolves moving forward. We can only hope to see more companies embrace this form of payment moving forward
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