South Korea’s Succeeding Finance Minister to Implement Cryptocurrency Taxation

South Korea’s Succeeding Finance Minister to Implement Cryptocurrency Taxation

Even without existing regulatory laws, Hong Nam-ki, the incoming finance minister, revealed taxation planned for cryptocurrencies and ICOs

A task force consisting of experts from relevant government agencies including the National Tax Service and the private sector will be formed to examine overseas examples and hammer out the taxation plan

Hong Nam-ki, Incoming Finance Minister of South Korea

On his confirmation hearing, the incoming minister presented written answers to the National Assembly. He implied the tax plan will be completed in line with the establishment and progress of the country’s tax framework, reports The Korean Times.

Hong on Cryptocurrencies

Hong Nam-ki stated that roughly 2,000 digital coins were traded across the globe. And 600 of these are traded nationwide.

He interpreted cryptocurrencies as a new occurrence and these digital ‘signs of value’ are not issued by a central bank but issuance is done privately. He then pointed out the hazards of the market such as investor safety and an overheating market.

He defined cryptocurrency exchanges as merely a brokerage service detached from blockchain technology. The country does not categorize exchanges as startups, therefore making it liable to pay taxes.

Hong on ICOs

ICOs are banned in Korea since September 2017. Hong implied that he will first observe market conditions, trends, and investor safety issues before considering whether to permit initial coin offerings.

Governments and Cryptocurrency Taxation

While South Korea is decided to implement taxes for cryptocurrencies, Russia is still determining if it will tax cryptocurrency mining.

The UK requires proceeds from crypto investments and working capital higher than £11,850 to be taxed.

Taxes in the US is subjected to a calculation based on the value of the coin before a trader can know how much he must pay.

In other taxation news, the US State of Ohio now has a new option in the payment of taxes: Bitcoin. Residents of the state can now pay their taxes using BTC.

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