S. Korea To Tax Crypto Exchanges 24.2 Percent, In Line With Existing Tax Policy

[abdmuiz]

Local news agency Yonhap reports that South Korean government has announced Monday, Jan. 22
that it will be collecting a 22 percent corporate tax and a 2.2 percent local income tax from the country’s cryptocurrency exchanges

The tax announcement comes right after the conclusion of an unprecedented anti-money laundering probe into six major South Korean banks that showed a 36 times increase in commissions from virtual accounts linked to crypto exchanges, from 61 mln won ($57,340) in 2016 to 2.2 bln won ($2 mln) in 2017

Yonhap reports that South Korean exchange Bithumb made 317.6 bln won ($295,368,000) last year in total, so is expected
to pay about 60 mln won in taxes, according to the tax percentages announced Monday

The announced tax percentages are in line with the South Korean tax code for all corporations that make a yearly income
of over 20 bln won ($18.7 mln)

Bithumb, which is the largest exchange globally at $2.85 bln daily trading volume as of press time, was hacked in February 2017,
losing about $7 mln in mostly Bitcoin and Ether. This security breach, along with several other breaches of South Korean exchanges, has recently been more definitively linked to North Korean hackers

The South Korean government has recently been stepping up enforcement of cryptocurrency regulation within the country.
Besides ordering the financial probe, the government has banned the use of anonymous virtual accounts, frozen the
opening of new virtual accounts, and forbid underage and foreign users from trading on exchanges

The South Korean public has fought back with a petition to stop the recent government regulations. After reaching
the necessary 200,000 signatures the petition is currently awaiting an official response from the governmen

[Mc_Moneysack]

I actually think that this is a positive step. It is far away from banning the exchanges as a lot of people were worried about. I don't know anything about the Korean tax systems, but it seems to me that they now have to pay taxes like any other local business. I think this just makes them more legit. Regulation is not always bad, it can also mean more investor protection and stability.

[abdmuiz]

it is very true to implement such a thing means investors are quite safe in making investments kiripto

[QlooQl]

Eventually this will not be a problem. Decentralized exchanges are already here. They will out compete centralized exchanges because they will not have to pay taxes (there is no one to tax). People just don't trust them enough yet. We will then see a major government backlash against the decentralized exchanges. They will be banned. And again, like throughout all of history, criminals and the super rich will use guile and teams of lawyers to make sure they get to use the decentralized exchanges and avoid taxes. What a future we have!

[abdmuiz]

in my country crypto is not legalized by government but can be traded

[Mc_Moneysack]

Eventually this will not be a problem. Decentralized exchanges are already here. They will out compete centralized exchanges because they will not have to pay taxes (there is no one to tax). People just don't trust them enough yet. We will then see a major government backlash against the decentralized exchanges. They will be banned. And again, like throughout all of history, criminals and the super rich will use guile and teams of lawyers to make sure they get to use the decentralized exchanges and avoid taxes. What a future we have!

Well, at least in my country the decentralised trades between individuals would be taxable, at least if one party gains money from it and hasn‘t held the coins for at least a year. The problem is that the government won’t be able to trace the trades, so it is likely that they will be banned. However, I believe that legal, taxable exchanges will then come back.

[inspiredfaith]

Since many people speak of their own country - in Bulgaria the tax is 10% only when you sell the actual cryptocurrency and take the money.

Greetings!

[jenica]

if indeed the pejak already in practice, it can be said that traders are safe to invest or even as a transaction