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4 December 2018

Regulation Cryptocurrency ICO

Cryptocurrency and ICOs to Be Taxed in South Korea

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December 04, 2018 | AtoZ Markets - The South Korean Ministry of Finance has recently announced that it is considering imposing taxes on cryptocurrency trading in the country.

As per local media outlets, Hong Nam-Ki, Minister of Finance, stated during his meeting with South Korea’s Democratic Party that the taxation plans are being studied at the moment, which will be decided on upon consultation with the financial experts and studying foreign taxation regulations.

The plans referred to are reportedly still in their initial stages, and might witness many modifications before they finally see light, amid expectations they will contribute tin booming the country’s economy, under the demand for digital currencies have in the country.

As per the reports, the plans will include taxing the Initial Coin Offerings (ICOs) as well, without news about how the mechanism of implementing that would be.

Customer protection and the government budget stood behind the suggestion

As per the ministry, protecting the customer is one of the basic reasons that pushed for considering taxing both, cryptocurrency and ICOs, especially with the uncontrolled movement of the market triggering alarms in many aspects of risks.

The ban the authorities imposed on ICOs in the country did not hold the South Koreans from investing in them from overseas, the thing that draw the attention of the regulators that government budget might have lost lots of additions.

In return, the country is still said to be open for blockchain, which as industry, has always been linked to digital assets.

AtoZ Markets reported at the beginning of last October, that the country had witnessed launching the first blockchain company, named Tamo, which was said to have been founded to “revolutionise the supply chain systems for small-to-medium-sized businesses”, according to KIP- the largest venture capital firm in the state.  

KIP is known of its major billon dollars investment in the country, according to financial reports, and some of its notable enterprises are Naver- the largest web search engine in the country, and the mobile phone messaging app Kakao talk- the main phone messaging software in the country.

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The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZMarketz.com, nor should they be attributed to AtoZMarkets.

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