[ad_1]
Photo: Pavlos Giorkas / Flickr
South Korea is known as one of the most enthusiastic countries in technology and innovation. Now the regulators of the country are working to elaborate their decision on the regulation of cryptocurrencies and ICOs.
As revealed by South Korea's incoming finance minister, Hong Nam-Ki, at the meeting with the country's Democratic Party, financial authorities are considering an option to introduce a cryptocurrency tax.
Taxation plans
According to the minister, the South Korean government is planning to tax cryptocurrencies and the first offers of coins. Although the ministry is already working on new tax plans, they will be presented only after consulting experts.
It is planned to create a working group composed of specialists from government agencies including the national tax service and the private sector. In addition, financial authorities will consider the best tax practices in the world. However, at this moment it is too early to talk about the final version of this plan as it is only in the initial phase.
Ico in South Korea
Although it is already known that not only encryption will be taxed, but also ICOs, the authorities have not yet decided how to proceed. But they said they would elaborate ways of taxing in full compliance with current market conditions and global industry trends to ensure the highest level of customer protection.
ICOs are currently banned in South Korea, many citizens and residents of the country are able to find opportunities to invest them abroad. Now the country is looking for the most feasible ways to bring them back and adjust them. Such a move will help the government receive additional income from taxation.
The legalization of Ico is still only an idea, however, in the context of possible debit charges by people who want to invest in such projects, the government itself is interested in allowing this form of fundraising.
The position of the minister towards the ICOs
As reported by CoinSpeaker, the South Korean authorities revealed their final decision on the possibility of using ICOs in the country in November. However, it has not yet been announced.
South Korea's incoming finance minister has highlighted that while cryptocurrencies are a new phenomenon and that there is no single internationally developed approach to this class of activity, the country should pay close attention to building the regulatory framework.
As for ICOs, he also stressed that there is a lot of work to do:
"We will determine our political guidelines on ICOs with the relevant agencies after reviewing the results of the financial regulator's market survey and obtaining expert feedback".
Although initially it was expected that the cryptocurrencies were somewhere beyond regulation, the reality turned out to be quite different. For example, some countries, such as Spain, have already introduced cryptocurrencies, while others, including Russia and South Korea, are considering this option. It means that in the future we could see cryptocurrencies even more regulated than they are now.
