How Unido Can be The Big Winner Following Tougher Korean Cryptocurrency Regulation
There are rumors that Morgan Stanley, the American multinational investment bank, and Nexon, a gaming giant in South Korea, are competing to acquire Bithumb, one of the largest exchanges in South Korea. Other parties are also said to be involved in the potential purchase of the platform. This is the second time Bithumb is up for sale, having declared its interests to be acquired back in 2018.
The interest by these parties comes at a crucial time for cryptocurrency in the Korean market. Lawmakers in the country have recently passed new laws that are soon coming into effect. The regulations will see the already hurdle-filled Korean cryptocurrency market become even harder to operate in. However, platforms, such as UNIDO, will make transitioning into the cryptocurrency business easier.
Crypto Regulations in Korea are Getting Stronger
The laws that are coming into effect will make it harder for cryptocurrency operations in the country. The laws include:
- ISMS license requirement. The South Korean government wants exchanges operating in the country to acquire this license, proving that the platform can provide information security and technology to protect their users. Crypto enthusiasts are not excited by the licensing requirement as it beats the purpose of anonymity and decentralized governance as envisioned by blockchain technology. The positive aspect is that users are assured of data safety and safety against theft of their digital assets.
- KYC and AML. The new law requires all cryptocurrency participants to link their official details to their cryptocurrency trading details. Users will only cash out if they meet this requirement. Through this law, the government wants to flag potential illegal activities that are made possible through cryptocurrencies. The government will use information from transactions to flag down any transactions that appear suspicious. Participants face jail term(s) and fines if they operate and fail to meet the requirements.
- Capital Gains Tax. The Korean government will start charging a 20% capital gains tax on profits obtained through cryptocurrency operations. In 2022, the new law will come into effect, a move that will affect cryptocurrency operations in the region. The tax is charged on profits above $2,300 from cryptocurrency-related activities. This law was partially fueled by discovering over 2,400 people who hid their assets virtually to avoid taxation.
Meeting these requirements requires the intervention of a platform that understands the needs of cryptocurrency asset management and the law’s requirements. UNIDO provides the perfect balance between the two, taking away the stress of dealing with the many conditions that come with cryptocurrency operations in certain geographical regions.
UNIDO Well Placed to Capitalize
Morgan Stanley, Nexon, and other parties interested in Bithumb have a plan for Bithumb after acquiring it. There is no better way to execute their plans than through UNIDO.
There are numerous factors to consider that may be overwhelming for companies. These include:
- Managing crypto assets
- Security of the platform and crypto assets within the platform
- Determining the best crypto service providers
UNIDO offers an all-in-one solution that is best suited for companies that are “seeking to manage and invest in crypto in a seamless, secure, and intuitive way,”- as quoted from their website. The platform is proven, with several active pilots with several banks globally. Its
Companies that participate in the cryptocurrency market through UNIDO will enjoy benefits such as:
- Crypto banking offers business banking portals enabling platforms to manage their business expenditures through crypto payments seamlessly. The feature also provides secure wallet management. With crypto banking, UNIDO will have measures in place that will hasten the ISMS licensing process. With crypto banking, the KYC requirements set by Korean law will easily be met as users can link their bank accounts directly to their wallets.
- DeFi Vault is a powerful tool for exchanges. It gives users access to multi-signature enterprise wallets, which they can use to store, manage, or invest crypto assets into leading networks globally. The DeFi Vault is secure enough to meet the ISMS requirements set by the Korean government.
- Supportive Ecosystem — Through the UNIDO ecosystem, different parties can create and tailor their UNIDO experience through the UNIDO core technology via an API.
UNIDO provides solutions for companies and individuals or groups that want to participate in the cryptocurrency market in Korea. Through UNIDO, each party can be seamlessly integrated into the Korean market (and other markets), having met all the legal requirements as guided by UNIDO.
About Unido
Unido is an enterprise platform for decentralized capital markets. It enables institutions & corporate clients to securely store, manage and invest their crypto assets into decentralized finance networks. Unido is underpinned by proprietary key signing technology that provides enterprise-grade security for any transaction which utilizes it.
Founded in 2017 and with a market-ready product, Unido is led by an experienced team of ex-Goldman Sachs, ex-Macquarie and ex-Wipro with decades of experience in enterprise software development, financial services and agency blockchain development.