The crypto community in South Korea may soon face strict reporting requirements for all crypto transactions, as the country’s National Assembly is currently debating whether to introduce “know-it-all” rules.

Arguments against the proposed KTS law were heard before the Political Committee of the South Korean Legislative Assembly on November 16, when lawmakers and industry experts opposed the proposed law.

If required by law, the KTS Rule will stipulate that companies that receive cryptocurrency must confirm and disclose the name and location of the issuer. In company-to-company transactions, it is also necessary to indicate the legal status of the issuer and the number of employees.

Choi Hwa-In of the Financial Supervisory Service (FSS) warned that the local blockchain industry could be “severely constrained” if the proposal is accepted. Lawyer Yoon Jong Soo later pointed out that as cryptocurrency becomes more and more popular, it becomes increasingly difficult to assume that the sender will provide the information needed to identify themselves.

The KTS rule also requires cryptocurrencies from outside Korea to register with the Financial Services Commission (FSC), the country’s financial regulator. These rules could start the initial shutdown of all cryptocurrency transactions in the country until the parties involved agree, although a delay period is likely to be introduced along with the legislation.

The rule was proposed in a series of bills by Kim Byung-wook of the Democratic Majority Party and Yoon Chang-hyun of the People’s Power Party on October 28.

Today’s National Assembly session follows a long line of regulatory discussions regarding cryptocurrencies for Korean lawmakers this year.

On this topic: South Korean Pension Fund Invests in Bitcoin ETF: Report

A discussion on whether to tax cryptocurrency income as planned from January 2022 for South Korean citizens. Several lawmakers have proposed tax deferrals, in the face of fierce opposition from Finance Minister Hun Namkhi.

Source: CoinTelegraph

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