Cryptocurrency Tax Coming to South Korea

Reports in South Korea indicate that the country’s financial authorities are considering a cryptocurrency tax.

Responding to questioning by a member of South Korea’s Democratic Party, the country’s Minister of Economy and Finance, Hong Nam-ki, said that authorities have plans for a cryptocurrency tax.

"We are preparing taxation plans by reviewing cases of foreign taxation through a task force, composed of relevant [governmental departments] and private experts, for proper taxation on virtual currencies,” said Hong. “It is desirable to confirm the concrete taxation plan by taking a detailed look [at the market]."

As Hong’s comments imply, plans for a cryptocurrency tax are still in their early stages. Thus, it’s difficult to get an idea of what such a tax would actually look like.

Building a Cryptocurrency Tax - Not so Easy

The economy minister also implied that South Korean authorities would be looking at an Initial Coin Offering (ICO) Initial Coin Offering (ICO) An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco Read this Term) tax. Determining what that would look like is even more difficult as Hong himself seemed unsure as to what form an ICO tax would take.

"It is necessary to take a careful approach [to ICOs] considering the market situation, international trends and customer protection problems," he said. "We will examine the direction ICOs take and the results of a survey by the Financial Supervisory Service and the gathering of expert opinions.”

Taxation of cryptocurrency has, ironically given Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term’s anarchistic origins, become a real possibility over the past few months.

Most recently, legislators in the US state of Ohio said that people could pay their taxes in Bitcoin.

Across the Atlantic Ocean, in the midst of the Iberian Peninsula, Spanish authorities have also said that they are going to implement a cryptocurrency tax by looking at capital gains on cryptocurrency holdings.

A survey undertaken by regulators in Madrid found 15,000 individuals, holding cryptocurrency in Spain, that the government plans to tax in the near future.