Meanwhile, participants in the cryptocurrency space said the steps taken by South Korea were positive on a long-term basis. I think it’s the start of a crackdown on anonymity and the illegal use cases that some cryptocurrencies might have,” Julian Hosp, co-founder and president of cryptocurrency start-up TenX, told CNBC’s “The Rundown.” Trade in bitcoin denominated in Korean won stood at around 4 percent on Tuesday, according to CryptoCompare. That compared to the more than 40 percent of total bitcoin trade denominated in Japanese yen and the roughly 30 percent transacted in dollar terms. Despite those proportions, the regulations in South Korea could still make a broader impact in the market, according to Hosp. The space is highly emotional and things are taken from a small thing and extrapolated into something really large. So even if Korea is quite small on a rational scale, it still could have a big impact,” Hosp said, stressing that he thought the developments would ultimately be positiv If, afterwards, investors and companies have more legal security working in the ecosystem, it’s going to have some short-term downsides, but long term, it’s going to have a really, really big boost,” Hosp explained.
Japanese Companies Operating in Korea Pay a Low Tax Rate
Although Japanese companies earned nearly 48 trillion won in sales in Korea in the past four years, they paid only...