Bitcoin, Crypto currency, Blockchain

South Korea: Blockchain-companies oppose the tax plans of the government

66fba6ef33b0f18a197186b9f172ad02 - South Korea: Blockchain-companies oppose the tax plans of the government

The South Korean government had recently decided to crypto stock exchanges of the country from the planned tax advantages for growth, technologies to exclude. This decision has now, as expected, considerable resistance from the resident in the crypto scene. Three representations of interest of the crypto sector have done particularly.

In July, the South Korean government has passed a law, the small and medium-sized companies, especially those that deal with so-called growth technologies, particularly favoured for tax purposes. The aim is to promote Innovation and technological innovations in the country.

The new regulation does not apply, however, without exception, for all new companies and Start-ups. The Ministry responsible for SMEs and Start-ups has compiled a list of the industries which are exempt from the tax advantages. In addition to the game industry and the entertainment industry also Blockchain-companies according to the Plan of the Ministry. Including both crypto-exchanges as well as Blockchain to fall according to the current reading-Start-ups.

Resistance from the Korean crypto scene

In the South Korean crypto-industry classification was understandably good. So it is not only negative, that you give crypto-company, no tax advantages, which leads to an economic disadvantage. Also the arrangement on the part of the Ministry in a more dubiosere corner against the representatives of the industry sour.

As the Korea Times reports, now the biggest special interest group of the South Korean crypto sector against the proposed scheme. The Korea Blockchain Association, the Korea Blockchain Industry Promotion Association and the Korea Blockchain Startup Association, a joint press release.

“Discouraging for the whole of the Blockchain-industry”

“The trade with block chain-based virtual currencies will soon be treated the same as gambling and alcohol shops. The national Assembly should adopt this law, there would no longer be a number of Blockchain-companies for various tax concessions in question. It discourages you from investing in research and development and leads to long-term migration to other countries“,

it is said in the press release. The exception is the Blockchain-companies of the tax advantages, is an expression of contempt, and “discouraging for the whole of the Blockchain-industry”.

Whether the proposal of the Ministry for SMEs and Start-ups will be really adopted as now planned, will only become clear in a couple of weeks. The legislature checks the draft up to 4. September. The local Blockchain industry so you still have the opportunity to present their concerns. But time is of the essence.

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