South Korea is seriously considering coming up with a tax regime for cryptocurrencies and ICOs gains. According to the recent submission to the National Assembly by country?s Minister of Economy and Finance doubling as the Deputy Prime Minister nominee, Hong Nam-ki, the strategy in place involves setting up a taskforce that will benchmark with other oversees nations that have managed to come up with a tax structure for cryptos and ICOs.
The ban on ICOs imposed in September last year still holds in the country. However, with the current climate it is possible that the nation will lift the ban ? how else will they tax an illegal operation.
According to the minister, the issue of setting up regulatory guidelines for the cryptocurrency industry needs to be approached with caution given that cryptocurrencies? presence domestically and globally is intense.
In his statement, the minister argues that, ?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.?
Ban continues to hold
Like China and several other nations, south Korea has warmed up to the idea of Blockchain, the pivotal technology behind cryptos but is not sold entirely to the idea of cryptos probably because the digital currencies can easily be used to conduct financial crimes like money laundering and financing of terrorism activities. However, with regulations in place governments can at least manage the menace of financial crimes but in the expense of cryptos? reputation.
South Korea is yet to announce its stance on Initial Coin Offerings ban despite reporting earlier that it was going to do so soon. Nations like France are set to milk the benefits of cryptos and ICOs as the country is in the final stages of enacting into law the 2019 budget amendment bill that seeks to reduce cryptos gains taxation to a parallel of 30% with other capital gains.