New South Korean Finance Minister Reveals Cryptocurrency and ICO Token Tax Plans
New Korean Finance Minister To Tax Cryptos
Taxes are currently a very hot issue in Asia. Not only Japan has recently affirmed that it would change the way that it would regulate taxes, but South Korea is also now following the same path as its neighbor.
Now, Hong Nam-ki, the finance minister of South Korea, has recently shown Korea’s taxation plans to the world. The country, which was known for not having big taxes, will increase its taxes. A task force created by the government will reunite experts and the private sector to examine foreign cases and establish rules for crypto taxes.
The official plan is to tax cryptos and Initial Coin Offerings (ICOs). The plan is to create a structure that will be used in the whole country and that will be up to international standards. The task force created for this idea was mostly made to see what other countries were doing and how it would best be applied to South Korea before the plan is finished.
The Views Of The Finance Minister
The finance minister of the country, which was only nominated last month, is expected to have a harder stance on cryptos than the ones who came before him. He is very careful about cryptos because he believes that the market is “overheated” and that investors need to be protected.
Not everything is negative though, as the new finance minister affirms that, while the market is overheated and Initial Coin Offerings are banned in the country, the government will be considering them in the future after watching the trends in the market, so there is a chance that they might end up being regulated. New policies will only be decided after careful investigation.
However, it is still hard to be actually sure whether the crypto ban will continue or if it will be lifted next year after the government deliberated about the issue. There is a wide battle happening right now to decide whether these assets should be legal or not in the country.
Unfortunately, crypto exchanges will be eliminated from the tax benefit’s list, so they will have to pay for taxes now, which will probably make their services more expensive. Part of the reason why this is happening now is that many exchanges in the country were deemed to be too vulnerable to illegal acts. Therefore, they would no longer receive the benefits.
Cryptos were excluded from the category of venture enterprise in August in the country and now the operators are bundled together with other normal businesses. This is part of the reason why they will not receive the subsidies anymore.