Korean Crypto Taxation Plans
The South Korean government is”planning to taxation 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 country’s finance minister. He’s been serving as the chief of the government policy coordination office, under the prime minister’s office. “Hong must undergo a parliamentary confirmation hearing, even though his nomination is not subject to approval by lawmakers,” Yonhap News Agency explained. “In South Korea, Prime Minister is the only cabinet post that 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 that took place on Tuesday, the publication noted.
“The taxation plan would be finalized in accordance with the creation and improvement of the taxation infrastructure and the tendency on global discussions,” Hong was quoted by The Korea Times as saying. He added:
A task force consisting of specialists from relevant government agencies such as the private sector and the National Tax Service will be formed to examine examples that are overseas and hammer out the tax planoshi site >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 these lingering problems such as the market overheating and investor protection. Therefore, we will need to be cautious in building the regulatory framework.”
Regarding ICOs, he reiterated that they are currently 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 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 the category of startup businesses, thereby eliminating the tax benefits they currently enjoy. He considers that”the exclusion reflected the criticism that crypto exchanges were exposed to prohibited acts and were merely a brokerage service separate from blockchain technology,” The Korea Times conveyed.
What do you think of South Korea’s crypto taxation programs? Tell us in the comments section below.
Images courtesy of Shutterstock and Yonhap News Agency.
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