On January 18th, Jeong Jung-hoon, Deputy Minister of the Tax and Customs Office of the Ministry of Economy and Finance of South Korea, responded to public inquiries about whether cryptocurrency taxes should be abolished along with financial investment taxes. He stated that the National Assembly, the country's legislative body, should discuss whether to include cryptocurrency gains as part of the plan to abolish financial investment income taxes. The South Korean government plans to submit a revised income tax law regarding financial investment taxes by the end of January or early February. The national elections of the National Assembly are scheduled for April 10th.

The South Korean financial authorities are developing regulatory rules for encrypted assets "mixers" that are being misused by illegal organizations as a means of money laundering. A spokesperson for the Financial Information Analysis Institute (FIU) of the South Korean Financial Services Commission said: "If encrypted assets are put into a mixer, it will be very difficult to track funds and monitor crimes. We believe that the risk of money laundering through mixers is very high. After the United States introduced mixer regulations last year, South Korea also began to consider this. Regulating encrypted asset mixers requires international cooperation."

South Korean securities firms, including Mirae Asset Securities and Samsung Securities, have suspended their brokerage services for spot Bitcoin ETFs listed in Canada and Germany following an advisory from the country's financial watchdog cautioning against domestic trading of overseas-listed Spot Bitcoin ETFs. The Financial Services Commission (FSC) has raised regulatory apprehensions over virtual assets, leaving major securities companies to take preemptive measures. While spot ETFs face restrictions, securities firms not included in the FSC's warning list are continuing to trade Bitcoin futures ETFs. The FSC has left open the possibility of investment in overseas-listed Bitcoin spot ETFs in the future as regulations on virtual assets are being established.

South Korean Financial Services Commission reiterated its commitment to restrict the issuance of cryptocurrency ETFs by financial institutions. The stability of the financial market and the protection of investors are the reasons for maintaining the current restrictions. Currently, South Korea's Capital Market Act limits the underlying assets of investment contracts, including ETFs, to financial investment tools, currencies, and ordinary commodities, but it does not include cryptocurrencies.

According to Jin Yu Cheng, a professor at Yonsei University Law School in South Korea, there needs to be a thorough examination of whether trading virtual asset futures should be considered a gambling crime. This proposal is related to the fact that South Korean financial authorities have not classified virtual assets as financial products. According to Article 10, Section 2 of the Korean Capital Markets Act, financial investment business operators engaged in financial investment business are not subject to Article 246 of the Criminal Code, which means that licensed financial investment business operators engaged in financial investment business are not subject to gambling crimes. On the other hand, with regard to South Korean virtual assets, since they are not financial products, exceptions cannot be applied.

YK Law Firm in South Korea stated that the functions of listing and delisting assets on cryptocurrency exchanges must be separated. In the future, it is recommended to establish an independent review committee or delegate the review authority to self-regulatory organizations.

The White House announced on Friday evening that US National Security Advisor Jake Sullivan, South Korean National Security Advisor Cho Tae-Yong, and Japanese National Security Advisor Takeo Akiba held a trilateral meeting in Seoul, South Korea to discuss North Korea's cryptocurrency theft, nuclear program, and ballistic missile program.

According to reports, the Korean digital asset exchange joint negotiation organization (DAXA) will cooperate with the Korean Financial Intelligence Agency (FIU) to accept reports on unreported virtual asset operators. Specifically, whistleblowers can report domestic and foreign virtual asset operators who have not submitted reports under the "Specific Financial Information Act" (Special Act) and have conducted unreported business with Koreans. DAXA will conduct a preliminary review of the report and transfer the results to FIU. FIU will reply to DAXA with the determination of whether the unreported encrypted business belongs to encrypted business and inform the company of the results.

Kim Joo-hyun, the chairman of the Financial Services Commission in South Korea, stated that they plan to concentrate the screening and analysis capabilities of the Financial Intelligence Unit (FIU) on investigating crimes involving the use of virtual assets (such as drugs and gambling) and illegal financial fraud that directly affects people's lives. In the future, they will share suspected criminal cases with major law enforcement agencies such as prosecutors and police to conduct strategic in-depth analysis. They aim to eradicate crimes involving drugs, gambling, and harm to people's lives, and return the proceeds from virtual asset crimes as much as possible. Kim Joo-hyun also announced plans to strengthen the review and inspection of cryptocurrency companies, conduct thorough reviews of major shareholders, and strictly examine whether there are money laundering risks or user protection issues in various reporting processes for existing operators in the future.