Breaking: South Korea Reveals Plans to Tax ICOs, Cryptocurrencies

[PRIBO247]

The government of South Korea is reportedly planning on taxing
initial coin offerings (ICOs ) and cryptocurrencies, according to a
document submitted by finance minister nominee Hong Nam-ki.
The incoming taxation plan came in a written answer submitted
to the country’s National Assembly, and in it, Hong claimed it
would be finalized according to the creation and progress of
taxation infrastructure, and according to international discussion
surrounding the topic.

Per his words, a task force “consisting of experts from relevant
government agencies including the National Tax Service and the
private sector” will be formed to examine crypto taxation
examples and create a taxation plan.

In the written answer Hong defined cryptocurrencies as
“electronic signs of values” that are issued privately and not by
central banks or other financial institutions. He noted there are
about 2,000 cryptocurrencies being traded throughout the world,
160 of which are present in South Korean exchanges.
He wrote:

"Cryptocurrencies are 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."

Addressing ICOs, which are currently banned in the country,
Hong revealed these would be carefully considered as market
conditions are set to be monitored, as well as “international
trends and investor protection issues.” He was quoted as saying:

"We will determine our policy orientations on
ICOs with relevant agencies after reviewing
the results of the financial regulator's market
survey and getting feedback from experts."

As for the government excluding cryptocurrency exchanges from
being categorized as start-ups, he noted this decision reflected
criticism surrounding cryptocurrency exchanges’ security issues
and potential to be used for illicit activities. He added these were
“merely a brokerage service” separate from blockchain tech.

According to local reports , the finance minister nominee noted
the government will do what it can to “nurture blockchain
technology” as, per his words, nine out of 10 business types are
“classified as blockchain-related businesses by Statistics
Korea.”

As CryptoGlobe covered South Korea has been looking for more
cooperation from other nations on regulating cryptocurrencies.
The government’s involvement in the nascent industry has seen
it crackdown on unauthorized crypto exchanges, forcing some to
shut down .

Source : https://www.cryptoglobe.com