Here comes my very first English post. I am active mostly in the Korean community. But I figured I wanted to communicate more with English speakers in the entire Steemit community.
I've got 6 legal issues faced by South Korea, the country that will introduce a regulatory framework for Bitcoin-based businesses and transactions by early next year.
The following 6 issues are a summary of the article published by insidebitcoin.com, which can be accessed at:
http://insidebitcoins.com/news/six-legal-issues-bitcoin-faces-in-south-korea/60057
1. Is Bitcoin money, a security or an asset?
Obviously, different government organizations have different opinions regarding the financial classification of Bitcoin. The National Tax Service in Korea interprets Bitcoin as money and an asset but Fair Trade Commission interprets it as a good. This needs to be resolved through legislation.
2. VAT and commision tax on Bitcoin purchases
If Bitcoin is considered an asset, VAT must be imposed. However, we are looking at an international trend, where VAT is being exempted. Japan, for example, has recently legalized Bitcoin and is now revising whether to remove consumption tax.
3. Money-laundering
Money-laundering through Bitcoin is surely something everyone is concerned about. South Korea is no exception.
4. Business Registration
Crpytocurrency exchanges are registerd under "Electronic Commerce ACT", which means that the government authorities are unable to create regulations that specifically target the crpytocurrencyt market in Korea.
[The following paragraph is my personal opinion]
Crpytocurrency exchanges are likely to be audited and supervised by the President or relevant government agencies that are under direct presidential chain of command, given Japan already amended laws so the exchanges are now required to register with the Prime Minister.
5. Remittances using Bitcoin
Bitcoin is transferred and converted into won or other foreign currency. The current Foreign Exchange Transaction Act states that foreign exchange transfers including remittances can only be done through a financial company. This means many Bitcoin providers may be in violation of the Foreign Exchange Transactions Act.