South Korea is preparing to introduce a supervisory fee for cryptocurrency operators in the country, based on their operating revenues.
The Financial Services Commission of Korea (FSC) has implemented the “Law on the Protection of Users of Virtual Assets,” which went into effect on July 19. Under the regulations, South Korean cryptocurrency exchanges are required to pay a regulatory share of about 300 million won ($220,240).
According to a local report, the regulated exchanges – Upbit, Bithumb, Coinone and Gopax – are required to comply with supervisory contributions.
The FSC announced Thursday that cryptocurrency operators will have to pay a supervisory fee for inspections by the regulator. The announcement was part of the amended “Executive Decree of the Law on the Establishment of the Financial Services Commission” and the revised “Provision on the Collection of Financial Institutions’ Contributions.”
The amended Law on the Protection of Users of Virtual Assets has included cryptocurrency exchanges for FSC inspection. In addition, the proposal indicates that regulatory contributions are based on the exchange’s operating income from the previous fiscal year.
Korbit is not targeted for supervisory fees, as its operating revenue last year was about 1.7 billion won. “A related organization has already been set up and costs are being incurred, so it is necessary to impose a supervisory share.” – noted an FSC official.
Contributions by virtual asset operators to the FSC are similar to quasi-taxes paid by financial institutions. The fees are subject to inspection by the regulator in exchange for the regulator’s supervision and services, the report added.
In addition, FSC inspections are expected to begin immediately due to the enforcement of the Law on the Protection of Users of Virtual Assets. As a result, the supervisory fee of cryptocurrency operators is unlikely to be delayed.
The new regulatory levies would affect exchanges such as Coinone and Gopax, which continue to suffer operational losses.
