From Black Market to Regulation...An End to Money Laundering and The Start of Crypto Taxation
Real Name Verification and Government Access to Personal Transaction History...Expected Late January

Seoul YTN News

Financial and tax institutions will be able to take a look into your transaction history for cryptocurrencies near the end of this month.

As the government starts to view transaction histories, cryptocurrencies that used to be only within black markets will no longer be able to be used for money laundering and a capital gains tax will be added.

One financial institution said Sunday that "The Anti-Money Laundering Guideline is a policy that is gaining strength forcing investors to provide permission to allow the viewing of their transaction history on exchanges"

"According to current law, banks dealing with anti-money laundering would have to also monitor exchanges," and "without a way to make transactions with banks cryptocurrencies etc., exchanges cannot exist."

This is the government's plan to regulate the black market using a real-name verification system and a so called 'Anti-Money Laundering Guideline'.

Through the name verification system they will be able to access the identity of a user who deposits or withdraws funds, and via the 'Anti-Money Laundering guideline' the government will be able to access a full transaction history.

Under current anti-money laundering laws the following obligations would be added: customer's real name verification, reporting of suspicious transactions, and control of suspicious accounts.

Exchanges would, after fully verifying a customers' identity, report on any suspicious transactions to financial institutions.

These guidelines would instruct exchanges about separating Corporate Investment and Personal Investment, and how they are to manage their userbase.

Firstly, for users that have a 'high risk of money laundering' real-name verification is to be applied using the "Customer Due Diligence" system.

In order to see if exchanges are managing their userbase properly, the storage and databasing of transaction histories will be under scrutiny of banks. The government will be able to check on this examination via banks.

Buyer and seller, price bought, price sold, and profit/loss are all parts of transaction history which is just the start of potential tax information.

Similar to stock trading, taxes on individual transactions, capital gains tax, and the fees associated with buying and selling are all other ways of adding corporate tax into the mix.

Prior to this, though exchanges managed transaction history on their own, viewing the data to stop money laundering or as tax information was difficult as each exchange had unique data. However, the guideline plan will solve this problem.

Financial institutions will be putting an end to fake and fraudulent accounts, such as corporate accounts disguised as an individual investors', by clearly separating corporate from individual investments.

This process is expected to be put into gear near the end of January or at the latest, early February.

Financial Intelligence Unit revised their legislation to separately add the Anti-Money Laundering Guideline to banks, while obligations to report suspicion according to said guidelines lie in the hands of exchanges.

If this law passes, the government will be able to regulate users suspect of money laundering directly through exchanges without having to go through banks.

"If the real name verification system goes into place, the government will have access to transaction histories and crpytocurrency should realistically be in a better place," and "I believe the market should slowly shrink as we see anti-money laundering and a just tax system put in place for cryptocurrencies "

This is translated from Korean YTN News: http://www.yonhapnews.co.kr/bulletin/2018/01/19/0200000000AKR20180119156500002.HTML?input=1195m

PS. @badcop2 I'm an American student here in Korea and I think there's a lot of confusion going on about Korea right now in the media. This is my first post and first attempted translation of some Korean news for the Crypto community here on Steemit. I hope you guys enjoy and I'll try to make daily updates of what's going on in Korea.