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 at his confirmation hearing on Tuesday.
President Moon Jae-in nominated Hong 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 that 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 had been for his confirmation hearing which took place on Tuesday, the publication noted.
“The taxation program would be finalized with respect to 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 such as the private sector and the National Tax Service will be formed hammer out the taxation program and to examine cases1xbitapp >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 such lingering problems like 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, international trends and investor protection issues,” elaborating:
We will determine our policy orientations on ICOs with agencies after reviewing the results of the market survey of the financial regulator and receiving feedback from experts.
Hong justified the government’s decision to exclude crypto exchanges from startup businesses’ class , thereby eliminating the tax advantages they currently enjoy. He considers that”the exclusion reflected the criticism that crypto exchanges were vulnerable to prohibited 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 programs? Let us know in the comments section below.
Images courtesy of Shutterstock and Yonhap News Agency.
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