South Korea parliament has officially postponed a private members’ bill that will start taxing profits from cryptocurrencies until January 2022, according to local media reports.
Rumors suggested last week the plan was to extend the implementation date by three months from the initial October 2021 date, a move that has been advocated by lawmakers belonging to the country’s National Assembly.
The country’s legislative body said more time is needed to build the relevant tax infrastructure as local cryptocurrency exchanges claimed the lack of time to build their reporting system by the deadline.
The taxation will also apply to mining operations and income from ICOs, and the new laws proposed an amendment to classify digital assets as ‘commodities’ rather than ‘currencies’.
The South Korean government is set to announce the final details of taxing income generated from cryptocurrency transactions after years of discussion about the virtual asset that yet remains in a grey area.
The South Korean government plans to charge residents a 20 percent tax on crypto income, which are worth more than 2.5 million Korean won (about $2,000).
Although no specific taxation standards for crypto assets have been put in place, but the finance ministry was reportedly considering re-classifying returns made on cryptocurrencies as a type of “other income.” This places crypto profits it in the same category as those earned from lotteries which has a 20 percent tax rate.
Despite the high tax tag levied on “other income” but it remains better than being taxed as a form of capital gains, as it is currently treated, which calls rates of up to 42 percent.
Fake emails purporting to be from the US Financial Industry Regulatory Authority (FINRA) have been sent to thousands of potential market participants around the world, according to an FINRA statement.
The mass email scam appears to be from the source domain name “@invest-finra.org”. Like a campaign the group warned about in October, the self-regulator has also alerted investors to avoid a phishing email that is requesting broker-dealers to fill out a fraudulent FINRA study.
In a notice posted on its website Today, FINRA said it “warns member firms of an ongoing phishing campaign that involves fraudulent emails that include the domain “@invest-finra.org”. FINRA recommends that anyone who clicked on any link or image in the email immediately notify the appropriate individuals in their firm of the incident.”
Finally, the Wall Street’s industry-funded watchdog has requested that the internet domain registrar suspend services for “invest-finra.org”, adding that it advised firms to delete all emails originating from this source.
Over the last few months, the FINRA has repeatedly warned financial services firms of tricky new phishing campaigns that mimic a message from the nongovernmental organization.
Typically, the fraudsters use special software to make the message appear genuine. Recipients are often invited to click on a link that appears to take them to the watchdog’s website. Instead, they go to a false website that tries to steal sensitive information from those targeted, which can be used later without their knowledge to commit fraud.
The watchdog also pointed to its guidance on fake emails, websites, letters and phone calls on its website. The regulator said anyone in doubt about the authenticity of contact or receives such correspondences should contact the relevant authorities.
The FINRA also urged anyone who entered their password to change it immediately and notify the appropriate individuals in their firm of the incident. Further, it has provided details on how to identify spoof emails in a dedicated section on its website.
Compliance and AML professionals face a difficult task. Not only must they source accurate data from an often confusing partner landscape, but they must also use that data in a way that helps their businesses stay compliant, avoid risk, and deter would-be criminals.
For people with so much on their minds, it makes sense that a few details regarding global registry data often slip through the cracks. Common mistakes lead to common misconceptions, which hurt even educated customers who don’t see the need to question best practices or information they have known for years.
Complacency can be dangerous, though, especially when it comes to compliance. Let’s take a look at a few common misconceptions held within the industry.
What Compliance Professionals Need to Know about Corporate Registries
As with all things data, corporate registries can be tricky, even for people who have been working with them for a long time. Compliance professionals may not always appreciate the scope and complexity of what goes on behind the scenes, even if the final deliverables meet their needs.
Although corporate registries are simply sources of information at their core, these data wells are far from easy to access, use, and navigate. While the data that each corporate registry offers are legally reliable, the complexity of accessing that data increases dramatically every time data is required from a new country. This is one of the primary reasons so much time is spent on public data collection, which research shows consume 40-50% of a compliance professional’s time.
In addition to the time wasted on manual data collection, not all corporate registries house the same information. Compliance professionals may be surprised, but not all data is the same, even when it appears to come from
the same source or covers the same subject matter. All corporate registries have distinctly different data and formatting. Without proper care and experience, it’s easy to mistake one format for another and end up with inaccurate information.
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That’s why we are here: to make the difficult problem simple. Compliance covers a wide range of disciplines, and data rarely reveals its secrets without a bit of help. Kyckr has worked for years to become the best provider of structured data services and today we have relationships with over 180 corporate registries from across the world.
What MLROs and CIOs Should Know about Global Registries
Leaders and c-suite members who deal with compliance understand that compliance is much more than a checkbox exercise. True compliance guards against the negative social impact that crime cause to society as a whole and it protects organizations from catastrophic breaches, hefty fines from regulators, and bad public press while providing actionable insights for revenue generation. That said, MLROs and CIOs should still consider how the pace of a quickly changing compliance environment can lead to knowledge gaps.
Here are a few key tips on global registries for executives with compliance oversight responsibilities:
Be conscious of upcoming KYC regulation changes. Rules change quickly, and the lengths of time between changes are getting shorter. Regulators are catching on to inefficiencies in KYC and AML compliance, and soon, supranational organizations may begin to impose or call for stricter standards. Governments may take some time to catch up, but organizations should not depend on that buffer for leeway.
Review AML/CTF and other application value chains. Companies cannot protect weak spots they do not realize exist. Review value chains to identify potential opportunities for synergy. Given the recent multiplication of both data sources and regulatory needs, including recurrent electronic reporting, and on-going monitoring, vigilance on this point will only become more critical as time passes.
Assess the cost benefits of automating manual processes. Manual AML and KYC processes can lead to weak points and prevent companies from achieving their compliance goals. Assess the cost benefits of replacing these manual processes in favor of new technologies that enable automation to streamline compliance processes and reduce regulatory risks. The upfront costs may be higher, but the savings and protections are more than worth the investment.
KYC and AML professionals have to be savvy to be effective in their roles. As the regulatory landscape shifts to match pace with larger changes in finance and beyond, leaders and compliance officers must be ready to meet new challenges with complete, accurate, and updated information and strategies.