South Korea and Russia intensively introduce encryption regulations, Morocco plans Central Bank Digital Money.

Regulatory Dynamics

1. South Korean financial regulators introduce new regulations for cryptocurrency exchanges

The Financial Intelligence Unit (FIU) of South Korea recently announced new regulatory measures for cryptocurrency exchanges. According to the new regulations, exchanges are required to identify and report any abnormal transactions on their platforms within three working days. Additionally, exchanges must provide the FIU with relevant documentation, including information protection management system certification, real-name authentication contracts with domestic banks, and qualifications proof for key personnel.

At the same time, the Financial Services Commission of South Korea is revising the "Specific Financial Transaction Information Reporting and Supervision Regulations," proposing to allow order sharing under certain conditions, which is an adjustment to the existing regulation in the "Specific Financial Transactions Act" that prohibits clients from trading assets with other business owners through business alliances. The legislative announcement period for this amendment is from February 18 to March 2.

2. The Russian Duma passes the cryptocurrency tax bill

The State Duma's Committee on National Construction and Legislation of Russia approved a cryptocurrency tax bill on February 15. This bill amends the tax laws of the Russian Federation, officially recognizing cryptocurrencies such as Bitcoin as property, with the aim of taxing the profits from cryptocurrency transactions of Russian residents.

The bill applies to all domestic residents, including citizens, foreigners, and both national and international organizations established in Russia. According to the regulations, if the annual transaction volume exceeds 600,000 rubles (approximately $8,100), the relevant entities must report their cryptocurrency transactions. Failure to pay or underpayment of taxes as required will incur a penalty of 40% of the due tax amount. The Russian Duma is expected to review this new cryptocurrency legislation on February 17.

3. Morocco is considering launching a central bank digital currency.

The Central Bank of Morocco is assessing the possibility of launching a central bank digital currency to keep up with the global fintech development trend. This move aims to optimize the payment system, enhance financial inclusion, and lay the foundation for the country's digital economic transformation. The Central Bank of Morocco is closely monitoring the pilot projects of central bank digital currencies in other countries to learn from their experiences and develop an implementation plan suitable for the national context.