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Regulations
South Korea's incoming finance minister, Hong Nam-ki, has announced that he has presented his government's tax plans for cryptocurrency and the first coin offerings. A task force composed of experts from government agencies and the private sector will be set up to examine overseas cases to establish fiscal rules on domestic cryptocurrencies.
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Short Korean taxation plans
The South Korean government is "planning to tax cryptocurrencies and the first offers of coins [ICOs]"The Korea Times reported on Monday, citing a written statement by the incoming finance minister of the country, Hong Nam-ki.
President Moon Jae-in appointed Hong last month to replace Kim Dong-yeon as the country's finance minister. He served as head of the government policy coordination office, under the Prime Minister's office. "Hong must go through a parliamentary confirmation hearing, even if his nomination is not subject to the approval of the legislators," explained the Yonhap news agency. "In South Korea, the prime minister is the only office in the cabinet that requires a vote by the legislators."
On Sunday, Hong presented written answers to the questions posed by an opposition MP on his fiscal policy at the National Assembly. They were for his confirmation hearing that took place on Tuesday, he noted the publication.
"The tax plan would have been finalized in accordance with the creation and progress of the tax infrastructure and the trend on international discussions," said Hong according to The Korea Times. He added:
A task force composed of experts from the relevant government agencies will be set up, including the national tax service and the private sector, to examine foreign examples and to plan the tax plan.
View of the new finance minister on Crypto
<img class = "size-medium wp-image-255299 alignright” title=”The incoming Korean finance minister confirms the cryptocurrency taxation plans” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/korea-tax-banner-300×300.png” alt=”The incoming Korean finance minister confirms the cryptocurrency taxation plans "width =" 300 "height =" 300 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/korea- tax-banner-300×300. png 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/korea-tax-banner-150×150.png 150w, https://news.bitcoin.com/wp-content/uploads/ 2018/12 / korea-tax-banner-768×768.png 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/korea-tax-banner-1024×1024.png 1024w, https: // news.bitcoin.com/wp-content/uploads/2018/12/korea-tax-banner-696×696.png 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/korea-tax -banner-1392×1392.png 1392w, https://news.bitcoin.com/wp-content/uploads/2018/12/korea-tax-banner-1068×1068.png 1068w, https://news.bitcoin.com/wp -content / uploads / 2018/12 / korea-tax-banner-420×420.png 420w, https://news.bitcoin.com/wp-content/uploads/2018/12/korea-tax-banner.png 1600w "sizes = "(maximum width: 300px) 100vw, 300px”/>The South Korean incoming finance minister wrote that "cryptocurrencies are a new phenomenon and therefore there is no internationally agreed regulatory framework". He also acknowledged that "there are persistent problems such as market overheating and investor protection, so we must be careful in building the regulatory framework".
As for ICOs, he reiterated that at the moment they are banned at national level. Nevertheless, he noted that the government would consider them carefully "after observing the market conditions, international trends and investor protection issues", elaborating:
We will determine our political guidelines on ICOs with the relevant agencies after reviewing the results of the financial regulator market survey and obtaining expert feedback.
In addition, Hong justified the government's decision to exclude cryptographic exchanges from the category of startup companies, thereby eliminating the tax benefits they currently enjoy. He believes that "the exclusion reflected the criticism that cryptographic exchanges were vulnerable to illegal acts and represented only a brokerage service separate from blockchain technology," said The Korea Times.
What do you think of the crypto-taxation plans of South Korea? Let us know in the comments section below.
Images courtesy of Shutterstock and Yonhap News Agency.
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