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[SJ] Tax evasion after the revision

It’s 2020 now, but it seems investors are stuck in 2017, when the “Kimchi Premium”- or the gap in cryptocurrency prices between Korea and elsewhere- reached its peak of 50 percent. No one who used the Kimchi Premium to make profits at the time got caught. Although it was a violation of Article 17 of the Foreign Exchange Transactions Act, people were able to escape justice, as it was a new type of crime. It won’t be available any more as suspicious transaction reporting is being made compulsory for all financial firms and virtual assets service providers starting from March 2021, when the revised law will take effect. Until now, financial firms only had to report suspicious transactions dealing with cash. However the government will tighten surveillance of financial crimes by making the virtual asset service providers also responsible for reporting suspicious transactions. It’s not just Korea. Under guidelines by the Financial Action Task Force, it is universal. Although a person can escape from the surveillance and find a money changer, he can’t get any relief as long as the money changer is not an official and clean virtual asset provider. #Terrorist funding by PayPal In 2016, when Islamic State committed a deadly suicide bombing in Indonesia, PayPal was used as the funding method. PayPal announced last month that it would provide service for virtual asset transactions. Just because PayPal had a connection with terrorist groups and virtual assets, many people consider it as a possible way of tax evasion. That will no longer be possible. In order for Paypal to provide virtual asset services, it should be a virtual asset service provider. As the government is planning to tighten surveillance of financial crimes, it is impossible for PayPal to escape from the monitoring system. Converting to cash just not to get caught is a shortcut to a financial criminal. #Deregulation through decentralization? The blockchain market, which is based on the decentralization, requests people self-direct as no third party can provide the service. As the virtual asset passes through many phrases such as De-Fi, individual wallets and DEX, it is nearly impossible for a third party do the tax processing. The validation process is likely to become more complicated as people use more “decentralized” services. If one doesn't prove acquisition value, it would be a disadvantage in the exchanging phrase. You are much mistaken if you think decentralized service is a way of tax evasion. Decentralized services, which makes taxation process more complicated, is much worse. Kim Tae-rin, operator of a chat room that shares information about blockchain meetup (https://open.kakao.com/o/gZDWUObb)

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