South Korea is considering taxing profit gains on from trades of bitcoins and other cryptocurrencies. According to reports, the South Korean government held an emergency meeting yesterday to discuss measures to tamp down on overheated trading in cryptocurrencies and impose regulations on the emerging industry. (See also: Why South Korea's Bitcoin Price Is Over $1,000.) 

The Wall Street Journal reports that the Office for Government Policy Coordination considered various measures at its meeting yesterday, ranging from taxing capital gains to restricting the sale and trade of cryptocurrencies by financial firms based in the country.

The new regulations for exchanges being proposed in Korea include self-certification requirements and prohibition of trading for minors and foreigners, who are not resident in Korea. For example, exchanges with more than a million users and $9.2 billion in revenue will need to self-certify themselves. Currently, foreigners can open an account on Coinone, simply by purchasing a cellphone and opening a bank account in the country. 

South Korea accounts for a major chunk of trading in cryptocurrency. (See also: Where Is The Real Bitcoin Capital In The World?) In fact, the largest increases in trading volumes for altcoins over last weekend occurred in South Korea’s Bithumb, which bills itself as the world’s busiest cryptocurrency exchange.

Altcoins jumped in valuations this week as bitcoin’s price rally tapered off. (See also: Bitcoin Price Takes Backseat As Altcoins Rally). Just this morning, news about a South Korea bank consortium’s trial test to transfer funds to their Japanese counterparts using Ripple, a cryptocurrency that doubles up as a payment network, caused a spike of as much as 84% in its value.

The phenomenal growth in South Korea’s trading volume, however, has come at a cost. Bithumb was hacked earlier this year and personal information for over 35,000 customers was stolen. Authorities imposed a $53,528 fine on BTC Korea.Com Co., Bithumb’s operator. 

But bringing cryptocurrency trading under government regulation might not be such a bad thing as it would attract mainstream investors and institutional investors to the market. South Korean government officials had earlier said they were considering a ban on bitcoin exchanges. (See also: South Korea Bans ICOs.) 

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