South Korea’s Finance Minister Nominee Reveals Government Plan in Taxing Crypto and ICO

South Korea’s Finance Minister Nominee Reveals Government Plan in Taxing Crypto and ICO

Dec 8th 2018| Investment By:Linda
South Korea’s Finance Minister Nominee reveals government plan in taxing crypto and Initial Coin Offering (ICO), bringing hope to the country’s cryptocurrency market.

As the recent “banishment” of Security Token Offering topic raises heat and reinforces on the already-tightening crypto regulations in China, South Korea’s Finance Minister Nominee reveals government plan in taxing crypto and Initial Coin Offering (ICO), bringing hope to the country’s cryptocurrency market.

In September 2017, South Korean government banned ICO sales officially, as Financial Services Commission labels ICOs a “violation of the capital market law.” The South Korean National Assembly made an official proposal to allow ICOs to operate within the country by May 2018. The assembly’s special committee stated that “a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order” should be in place overseeing domestic ICO operations. By July 2018, the South Korean National Assembly raises possible terms of lifting ICO ban and creating a taxation framework. 

According to The Korea Times, the ICO taxation plan would be completed in accordance with the taxation infrastructure and the trend on international discussions. "A task force consisting of experts from relevant government agencies including the National Tax Service and the private sector will be formed to examine overseas examples and hammer out the taxation plan," said by the Finance Minister nominee Hong Nam-Ki. 

Hong further stresses on a diversified regulatory system globally because "cryptocurrencies are a new phenomenon" and regulatory framework needs to be carefully laid out for investor protection and balanced market to avoid overheating. 

"We will determine our policy orientations on ICOs with relevant agencies after reviewing the results of the financial regulator's market survey and getting feedback from experts," Hong said.