Korean Crypto Taxation Plans
The South Korean government is"planning to tax 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 at his confirmation hearing on Tuesday.
President Moon Jae-in nominated Hong month to replace Kim Dong-yeon as the country’s finance minister. He has been serving as the chief of the government policy coordination office, under the minister’s office. “Hong must undergo a parliamentary confirmation hearing, even 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 were for his confirmation hearing which took place on Tuesday, the publication noted.
“The taxation plan would be finalized in accordance with the creation and progress of the taxation infrastructure and the tendency on global discussions," Hong was quoted by The Korea Times as saying. He added:
A task force composed of experts from government agencies including the National Tax Service and the private sector will be formed to examine cases that are overseas and hammer out the tax plantop 5 bitcoin casino bitcoin casino free faucet >New Finance Minister’s View on Crypto
The South Korean incoming finance minister wrote that"Cryptocurrencies are a new phenomenon and so there is no internationally agreed regulatory framework." He then acknowledged that"there are these lingering problems like the market overheating and investor protection. Therefore, we need to be careful 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 watching market conditions, global trends and investor protection issues," elaborating:
We’ll determine our policy orientations on ICOs with agencies after getting feedback and reviewing the financial regulator’s market survey’s results.
Hong justified the government’s decision to exclude crypto exchanges from the category of startup businesses, thereby eliminating the tax benefits they enjoy. He believes that"the exclusion reflected the criticism that crypto exchanges were vulnerable to illegal acts and were merely a broker service independent from blockchain technology," The Korea Times conveyed.
What do you think of South Korea’s crypto taxation plans? Tell us in the comments section below.
Images courtesy of Shutterstock and Yonhap News Agency.
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