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South Korea’s FSC Bans Cross Trading On Crypto Exchanges.
2021-06-07 | Big Bob
“In order to convert the cryptocurrency received as a fee into KRW, you've got no choice but to sell the cryptocurrency at your home or business.”A ban on cross-trading would in theory prevent platforms from having the ability to transmute these fees from cryptocurrency to fiat currency. Additionally, the planned ban could mean compulsory zero-commission trading, eliminating the revenue that might be earned from trading fees. In line with some anonymous sources, South Korean cryptocurrency exchanges are going to be forced to make a new business to convert trading fees to fiat currency. However, such a move would accompany significant cost implications as the country’s AML policies would make such a venture expensive to work. Apart from affecting exchange revenues, the move could also pose significant challenges for tax payments. Indeed, withholding is levied on exchange trading fees, which suggests that platforms must find means to convert fees received in crypto to won since taxes can't be paid in cryptocurrency in South Korea . As a stop-gap measure, crypto exchanges in South Korea might be forced to use the fee payments received in cryptocurrency as collateral to get loans for withholding payments.
