Korean Crypto Taxation Plans
The South Korean government is”planning to tax cryptocurrencies and initial coin offerings [ICOs],” The Korea Times reported on Monday, citing a written statement by the nation’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 finance minister of the country. He has been serving as the chief of the government policy coordination office, under the office of the minister. “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 answers to questions asked by an opposition lawmaker about his tax policies to the National Assembly and best bitcoin casino program . They were the publication noted.
“The taxation program would be finalized with respect to the creation and improvement of the taxation infrastructure and the tendency on international discussions,” Hong was quoted by The Korea Times as saying. He added:
A task force composed of specialists from government agencies including the private sector and the National Tax Service will be formed hammer out the tax program and to examine examplesTake note of the significance of a bitcoincasinoreview.net >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 confessed that”there are such lingering problems such as the market overheating and investor protection. Therefore, we will need to be careful in building the regulatory framework.”
Regarding ICOs, he reiterated that they are banned. Nonetheless, he noted that the government would carefully consider them”after seeing market conditions, global trends and investor protection issues,” elaborating:
We will determine our policy orientations on ICOs with applicable agencies after receiving feedback and reviewing the results of the market survey of the financial regulator.
Hong justified the government’s decision to exclude crypto exchanges from the category of startup businesses, thereby eliminating the tax advantages 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.
Need to compute your bitcoin holdings? Check our tools section.