Bitcoin, Crypto currency, Blockchain

South Korea: crypto-companies threaten to significantly higher taxes

South Korea: crypto-companies threaten to significantly higher taxes

Home News South Korea: crypto-companies threaten to significantly higher taxes

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Matthias Nemack –
04.10.2018

In the summer of important Places in South Korea were discussed, such as with crypto Start-Ups deal with it. Of the proposals of an important Ministry, the government wants to know seemingly nothing more. Crypto-businesses should be legally no venture capital companies. With a variety of significant consequences.

The government risked collapse of the domestic crypto market

A number of major crypto-exchanges, investors, buy worldwide, money in Wallets, store, or Coins such as Ripple and selling are located in South Korea. The service provider Bithump or Upbit and many others. According to the classification concept of the Ministry for small and medium-sized enterprises, in close coordination with a number of South Korean Startups from the August 2018, the companies of the Blockchain-industry would be the risk of companies has been certified. So far, everything after that looked, in fact, the majority of the exchanges could receive the Status as a Venture company. By the end of 2019 should be according to the current state to the end of the for the industry and advantageous classification ushered in. Experts see the development of critical, since they could affect the market growth in the country.

Classification would allow the corporate tax burden rise

Why? The classification of runs, elimination of, among other things, a currently customary discount of 75% on the acquisition tax. Also the corporate tax and the income tax would double the exchange of currencies. Furthermore, the loss of credit, guarantees, and other preferential threatening treatments as a result of the current arrangement. According to the South Korean government crypto-currency exchanges which are currently in the start-up phase and new to the market is no longer pushing as a venture capital company can be authorised. First opinions from the environment of lobby groups in the Blockchain Community and, in General, the crypto-world, allegedly, are no longer accessible to the tax advantages of a threat to the recovery of the market in South Korea.

The elimination of the tax-special terms and conditions could be serious consequences

In the worst case, could start-UPS be planned directly abroad, furthermore, the brain drain threatens established firms had decided to a lack of awareness due to the advantage of the treatment by the tax authorities for the location of South Korea. According to rumors, the representatives as Upbit are looking for first major industry to Alternative sites. The above-mentioned of the Ministry and the crypto industry is now really, finally, by the government, can come to the market in the country, even to a complete Standstill.

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