SoKor Reveals Plans to Tax Crypto, ICOs

Dec 04, 2018 at 22:45

The South Korean government is mulling over a tax on virtual currencies and ICOs.

According to a report by local news outlet The Korea Times, Finance Minister Hong Nam-Ki revealed the plan in a document submitted to the South Korean National Assembly.

Hong was responding to an inquiry of the body on the taxation of cryptocurrency.

The nominee noted that the plan will be finalized in line with the taxation infrastructure and progress by global stakeholders.

“The South Korean government reportedly has plans to tax cryptocurrency and ICOs, despite the lack of a regulatory framework,” Hong was quoted in The Korea Times.

This adds to the burden of cryptocurrency business in South Korea which has a blanket ban on ICO projects, in place since late last year.

The policy is expected to be implemented even amid the lack of a regulatory framework.

Hong said the government will reveal its definite position on ICOs once it completes a survey that aims to determine various factors such as the industry’s market conditions, investor protection issues, and global trends.

The survey is jointly conducted by the financial regulatory market and experts.

The nominee described virtual currencies as a “new phenomenon and so there is no internationally agreed regulatory framework.”

“Furthermore, there are such lingering problems as the market overheating and investor protection. Therefore, we need to be careful in building the regulatory framework,” he added, while recognizing that there are 2,000 digital currencies traded worldwide and 160 traded locally.

As for blockchain technology, Hong said government would nurture this innovation, citing that 90% of businesses are driven by blockchain.