South Korea to Double Crypto Taxes, Says Exchanges Are Not Venture Firms

    South Korea Says No to Crypto Exchanges as Venture Firms, Taxes to Double

    The government of South Korea has refused to go back on its stance to exclude the cryptocurrency and blockchain industry from being certified as venture firms and has rejected a legislative proposal to this effect,

    In fact, the position will see cryptocurrency exchanges face the burden of their corporate and income taxes doubling while they will no longer benefit from a 75% cut in acquisition taxes.

    The Ministry for Small and Medium Enterprises (SMEs) had requested for Korea’s domestic blockchain industry, including cryptocurrency exchanges, to be removed from the government’s official classified list of certified venture firms. This meant that cryptocurrency startups and exchange platforms will join businesses from the gambling, bar and entertainment industry. By implication, the industry will give up tax perks and any privileges such as credit guarantees.

    At present, some of the biggest exchanges in Korea including UPbit and Bithumb are still running as venture firms, a status they would by year-end.

    Industry players including the Korea Blockchain Association, Korea Industry Promotion Association and the Korea Blockchain Startup Association have decried the move saying the measure will discourage the industry as a whole.

    As reported by Business Korea this week, the South Korean government has agreed upon the proposal with its legislation in the National Assembly.

    The report said under the new government policy, cryptocurrency exchanges that will be newly set up this month or later cannot be certified as venture firms, painting a bleak forecast for new startups entering the space.

    Industry analysts say the cut in tax benefits is certain to discourage research and development within the industry which could seek to move their base of operations to friendlier jurisdictions abroad.

    So far, Korean exchange Upbit made a notable expansion to Singapore in its first international foray earlier this year with operations to commence this month.

    Launched a year ago by Dunamu, an affiliate of Korea’s largest messaging platform Kakao, with support for over 100 cryptocurrencies at launch, chief executive Sigroo Lee had a telling explanation for the company’s expansion beyond South Korea.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Coinbase Upgrades Wallet App to Simplify Crypto Transactions In A Bid to Boost Adoption

    Coinbase exchange has announced an upgrade of its digital wallet in a bid to make crypto transactions much easier. According to a blog post...

    Bitcoin’s Correlation with S&P 500 Jumps to A New High, But So Does With Gold

    Bitcoin’s correlation with both equity market and precious metal climbs to an at all-time high Bitcoin busted the myth that it can’t be...

    Former Olympic Wrestler and UFC Fighter Ben Askren Promotes Bitcoin With Twitter Handle

    UFC fighter Ben Askren changes his twitter handle to ‘Bitcoin Halving May 13 in a bid to promote to the BTC community with halving...

    Ether Price Undervalued But The Fundamentals Are Not Looking Good

    After a bad March, ETH price seeing greens, MVRV Ratio says ETH undervalued While Bitcoin active addresses on the rise, Eth’s declining but...

    Microsoft Joins Blockchain for Social Impact Coalition Initiative For Virtual Earth Day Hackathon

    Microsoft is set to support the Blockchain for Social Impact Coalition (BSIC) program whose winners will be rewarded during the Global Virtual Earth...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.