julio 19, 2017 | Posted in:Blog
Korean Crypto Taxation Plans
The South Korean government is»planning to taxation cryptocurrencies and first coin offerings [ICOs],» The Korea Times reported on Monday, citing a written statement by the country’s incoming finance minister, Hong Nam-ki.
Hong Nam-ki in his confirmation hearing on Tuesday.
President Moon Jae-in nominated Hong to replace Kim Dong-yeon as the country’s finance minister. He’s been serving as the chief of the government policy coordination office, under the minister’s office. «Hong must go through a parliamentary confirmation hearing, though his nomination isn’t subject to approval by lawmakers,» Yonhap News Agency explained. «In South Korea, Prime Minister is the only cabinet post which requires a vote by legislators.»
On Sunday, Hong submitted written replies to questions asked by an opposition lawmaker about his tax policies to the National Assembly and best bitcoin casino app. They had been the publication noted.
«The taxation plan would be finalized in accordance with the creation and progress of the taxation infrastructure and the trend on global discussions,» Hong was quoted by The Korea Times as saying. He added:
A task force consisting of specialists from government agencies including the National Tax Service and the private sector will be formed to examine examples and hammer the tax plan outBetcoin rating >New Finance Minister’s View on Crypto
The South Korean incoming finance minister wrote that»Cryptocurrencies are a new phenomenon and so there’s no internationally agreed regulatory framework.» He then acknowledged that»there are such lingering problems such as the market overheating and investor protection. Therefore, we need to be cautious in building the regulatory framework.»
Regarding ICOs, he reiterated that they are currently banned domestically. Nonetheless, he noted that the government would carefully consider them»after seeing market conditions, global trends and investor protection issues,» elaborating:
We’ll determine our policy orientations on ICOs with agencies after receiving feedback from experts and reviewing the results of the regulator’s market survey.
Hong justified the government’s decision to exclude crypto exchanges from startup businesses’ category , thereby eliminating the tax benefits they currently enjoy. He considers that»the exclusion reflected the criticism that crypto exchanges were vulnerable to prohibited acts and were merely a brokerage service independent from blockchain technology,» The Korea Times conveyed.
What do you think of South Korea’s crypto taxation plans? Let us know in the comments section below.
Images courtesy of Shutterstock and Yonhap News Agency.
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