South Korean Exchanges to Pay 24% Taxes on Cryptos As Officials to Declare Bitcoin Holdings

South Korean Exchanges to Pay 24% Taxes on Cryptos As Officials to Declare Bitcoin Holdings

Last week was one of the breakneck fluctuations in the prices of all virtual coins, including bitcoin. However, the downhill swings were prevailing, as sometimes the prices saw falls by more than 20%. Crypto critics stirred the bubble bursting talks, although the reason for such plunging could remain on the ground surface. And that would be the Asian curbing on digital money, which continues this week.

For example, South Korean exchanges will have to pay 24.2% of corporate and local revenues taxes soon, whereas the country’s executives might be obliged to declare their crypto holdings.

Our top trading bots

How It All Started

Being squeezed between the sides (crypto inimical China and bitcoin congenial Japan), South Korea was staying hands-off regarding crypto regulation at the very beginning. But now, because of bubble concerns with lots of people involved in trading and gambling and against the background that North Korea, South Korean biggest enemy, could target the country’s crypto exchanges, its government decided to get more severe with crypto regulation. In December 2017, it announced the restricting measures on cryptos.

Nearly two weeks ago, on January 11, South Korean justice minister announced the scheme to ban crypto exchange platforms. After receiving a tremendous amount of adverse responses, the government tried to soften the attitude saying that the decision was not final. Even though Koreans continued the backlash, signing the petition against the government curbing on cryptos, which on January 22 had over 224,000 supportive voices.

Moreover, in the past few weeks, the country’s government prohibited the trading of bitcoin-based futures and the use of unnamed virtual currency accounts. Since then citizens above 19 years old, foreigners and local financial establishments are not allowed to invest in cryptos.

Exchanges to Pay 24% Taxes on Income, Share Data With Banks

According to Yonhap, this Monday, January 22, South Korean authorities notified about the decision to collect up to 24.2% of regional revenues and corporative fees from the country’s virtual money exchanges in 2018. The platforms should pay the corporative fee on revenues gained in 2017 by the end of spring’s first month. At the same time, the local earnings tax should be paid by the end of spring’s second month.

Meanwhile, according to existing South Korean laws, country’s corporations whose earnings make up more than 20 billion won ($18.7 million) are obliged to pay 22% of corporate revenues taxes and only 2.2% of local income taxes.

This is especially interesting because the South Korean crypto market is in the top-3 largest on the planet. One of South Korean largest crypto platforms Bithumb last year gained 317.6 billion won ($298.5 million). Thus, it is anticipated to pay approximately 60 billion won ($56.4 million) both for corporative and regional earnings taxes.

On Sunday, January 21, country’s government informed that six largest banks would be eager to offer services to crypto platforms already this month. Therefore, the exchanges will be required to share clients’ data with these financial institutions.

Officials to Declare Their Cyber Pilings?

Recently, a term at the country’s National Assembly’s Administrative and Security Committee Chung Dong-yong presented a document, according to which South Korean placemen will have to declare their digital earnings. The bill appends such virtual pilings as BTC, ETH, and XRP to the nomenclature of public exposure items.

“The current Public Service Ethics law excludes cryptocurrency, which has recently emerged as a means of property proliferation,” said Chung Dong-yong.

The new document might bring some changes in the Public Service Ethics Act and demands public governors expose their virtual money holdings which exceed 10 million won ($9,350). If the placemen try to deceive the public, they could face fines and disciplinary action.

Interestingly, last week some executives at the Financial Supervisory Service (FSS) were blamed for insider trading on the understanding of cyber money rules.

Mark Cuban calls for stablecoin regulation in wake of Iron Finance 'bank run'
Billionaire investor and DeFi proponent Mark Cuban has called for stablecoin regulation after losing money on what he dubbed as a “rug pull” on the Iron...
Here’s how Bitcoin’s impending death cross could be a contrarian buy signal
Bitcoin’s (BTC) succession of sharp corrections from its all-time high at $64,900 has turned investor sentiment negative, at least for the short-term. While...
Bill banning crypto mining for 3 years dies in NY state assembly
A bill which would have required miners in New York to halt operations for three years as part of an apparent effort to slow the environmental impact of...
Canadian prime minister's sibling goes bananas for Dogecoin at Bitcoin 2021
The big crypto news out of Miami over the weekend may have been Salvadoran President Nayib Bukele’s decision to proceed with making Bitcoin (BTC) legal...
Unsure about buying the dip? This key trading indicator makes it easier
When an asset enters a bear phase and the headlines are negative, analysts project further downside, and the sentiment shifts from optimism to pure gloom...
Bitcoin Swings Again, But Blockchain Boom Keeps 100K Target Alive
By Yasin EbrahimInvesting.com – The wild swings in bitcoin continued Friday, but business activity on the blockchain has never been better, and will eventually...
Crypto derivatives market down but not out as $3B expiry sours the mood
Bitcoin (BTC) led the entire cryptocurrency market through a tumultuous period after the majority of the cryptoverse was painted red on May 19, a day now...
Nvidia reports record earnings, claims it's 'hard to determine' impact of crypto miners
Nvidia, a leading manufacturer of graphics processing units, or GPUs, has announced record earnings for Q1 2021. However, the firm has downplayed the role...
Cardano Jumps 20% In Rally
Investing.com - Cardano was trading at $2.260629 by 08:52 (12:52 GMT) on the Investing.com Index on Saturday, up 20.36% on the day. It was the largest one-day...
Ripple wins access to SEC discussions on defining crypto assets as securities
Ripple Labs has been granted access to U.S. Securities and Exchange Commission documents “expressing the agency’s interpretation or views” on the subject...
Cinedigm integrates Theta blockchain tech into anime streaming channel
Cinedigm, a major American content distribution company, is applying blockchain technology to one of its streaming channels.The company has partnered with...
Kakao’s Klaytn expands NFT offerings to OpenSea following 800% quarterly growth
Klaytn, the blockchain project of South Korean tech giant Kakao, has partnered up with NFT marketplace OpenSea to bring a non-fungible token market to its...
First Swiss Crypto Asset Management License Issued For Crypto Fund
For the first time in Switzerland Crypto Fund has been authorized to serve institutional patrons in the niche of cyber assets. The document which permits...
Latvian Gov’t Considers Recognizing Cryptos As ‘Means Of Exchange’
Latvian crypto enthusiasts may soon start enjoying cyber assets legally. However, they will also be obliged to pay taxes on them. According to local reports,...
PhD Student Won DNA Deciphering Contest, Receiving Bitcoin as an Award
A unique contest among science students has been completed this week. Scholars had to decrypt secret messages in a DNA tube in order to receive a unit...