Global Crypto Tensions Rise: South Korea, France, Cambodia, and Coinbase
Martial Law News in South Korea Ignites 30% Bitcoin Drop on Local Exchanges
South Korean President Yoon Suk Yeol declared martial law citing threats from North Korea and opposition actions, leading to Bitcoin's BTC/KRW pair dropping over 30% on Upbit. The declaration caused disruptions in crypto exchanges and political tension, with opposition lawmakers accusing Yoon of attempting to suppress parliament. CryptoQuant CEO Ki Young Ju sought international attention, including from Elon Musk, due to censorship concerns. The National Assembly unanimously voted to lift martial law the same day, stabilizing political tensions but leaving crypto markets volatile. Exchanges like Upbit faced heavy traffic and operational delays during the crisis.
France Proposes Tax on Unrealized Crypto Gains
France advanced a plan to tax unrealized Bitcoin and crypto gains under its "Tax on Unproductive Wealth." Current policies impose a 30% flat tax on crypto gains over €305, while this new measure faces backlash for potentially stifling innovation and destabilizing markets. Critics, including Michael Saylor, warn it could force asset sales, harming French investors. Penalties for non-compliance are severe, and the global crypto community debates its fairness, given crypto’s volatility. This policy could inspire similar moves in Europe, intensifying scrutiny of enforcement and prompting wealth relocation to tax-friendly jurisdictions.
Coinbase Exits Turkey's Crypto Market, Cuts Ties with Law Firm Over Anti-Crypto Hiring
Coinbase announced its withdrawal from Turkey’s crypto market, citing regulatory hurdles after filing for liquidation three months post its initial application. Concurrently, Coinbase CEO Brian Armstrong revealed the company severed ties with law firm Milbank following its hiring of former SEC enforcement director Gurbir Grewal, criticizing Grewal's anti-crypto enforcement actions. Armstrong emphasized the broader crypto community should avoid engaging firms employing individuals with such records. These moves highlight Coinbase's strategic pivot to navigate complex international and domestic regulatory landscapes amidst evolving crypto policies, including advocacy for pro-crypto leadership in the U.S. regulatory framework.
Cambodia Bans Binance, Coinbase, and 14 Other Crypto Exchanges Amid Concerns
Cambodia has blocked 16 cryptocurrency exchange websites, including Binance and Coinbase, due to unlicensed operations under the Securities and Exchange Regulator of Cambodia (SERC). Despite these restrictions, mobile apps remain functional, indicating a complex regulatory stance. The crackdown targets illicit activities tied to cybercrime and money laundering, with Chainalysis revealing that Huione Guarantee processed over $49 billion in crypto transactions since 2021. Cambodia ranks in the top 20 globally for retail crypto usage, with 70% of transactions via centralized exchanges. The government’s Bakong payments system processed 200 million transactions in 2023, reflecting a dual approach to digital finance innovation.
This article has been refined and enhanced by ChatGPT.
