Crypto Market Manipulation Should Be Criminally Punishable, NFTs Should Be Taxed—South Korean Regulators

Crypto market manipulation may have criminal consequences in the future in South Korea as the Asian nation’s regulator wants the National Assembly to make manipulators criminally liable for the act. 

Examples of crypto market manipulation cited by South Korea’s Financial Services Commission include insider trading and price manipulation. 

With the last meeting of the South Korean parliament scheduled for Dec. 9, it is unlikely that any law related to crypto market manipulation will be passed by then. 

The Financial Services Commission also wants certain forms of non-fungible tokens (NFTs) to be taxed. The South Korean capital of Seoul is already set to start taxing crypto gains that go over $2,100 beginning next year. 

Crypto Market Manipulation Should be Criminally Punishable 

Crypto market manipulation should be criminally punishable under the law, according to South Korea’s Financial Services Commission (FSC). 

The commission submitted a report to the National Assembly which expresses the committee’s desire to “bring criminal liability to unfair behavior in crypto markets such as price manipulation and insider trading,” per a report by CoinDesk

In response, the National Assembly has then told the FSC to create a draft bill due in a month. With the last parliamentary meeting scheduled to take place on Dec. 9, it is unlikely that the draft bill will be ready by then. 

The commission’s “call for punishments relative to the gains obtained unfairly, with minimum one year in prison and fines three to five times the illicit gains.” Gains that amount to more than $4.2 million should be punishable by five years in person, according to the FSC. 

Taxes on Crypto Gains, NFTs

Aside from criminal liability for crypto market manipulation, the FSC also wants certain types of NFTs to be taxed. The CoinDesk report notes that the FSC is going back on previous statements that showed NFTs would be exempted from such taxes. 

CoinDesk also notes that the South Korean capital, Seoul, will implement a 20% tax on crypto gains that go beyond $2,100. This is set to begin next year, but there are calls for the deadline to be extended. 

South Korean Government vs. Crypto Exchanges

In 2018, it was reported here on Tech Times that the South Korean government was planning on taxing Bitcoin exchanges. 

Fast forward three years later, and in June of this year, it was reported that crypto exchanges in the country could sue the government for banking requirements that have been described as unconstitutional. 

Related Article: [Breaking] South Korea Crypto Exchanges Could Sue Government for Alleged ‘Unconstitutional’ Banking Requirements

That does not seem to have deterred the South Korean government, as it suspended over 60 crypto exchanges in September. 

According to a report by SlashDot, crypto exchanges were required to have themselves registered by Sept. 24. 

Read Also: South Korean Toilet Pays Users Digital Currency for ‘Taking Care of Their Business’

This article is owned by Tech Times

Written by Isabella James

ⓒ 2021 TECHTIMES.com All rights reserved. Do not reproduce without permission.

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