S. Korea To Tax Crypto Exchanges 24.2 Percent, In Line With Existing Tax Policy
January 23 2018 - 4:23AM
ADVFN Crypto NewsWire
S. Korea To Tax Crypto Exchanges 24.2 Percent, In Line With
Existing Tax Policy
Local news agency
Yonhap reports that South Korean government has announced
Monday, Jan. 22 that it will be collecting a 22 percent corporate
tax and a 2.2 percent local income tax from the country’s
cryptocurrency exchanges.
The tax announcement comes right
after the conclusion of an unprecedented anti-money laundering
probe into six major South Korean banks that showed a 36
times increase in commissions from virtual accounts linked to
crypto exchanges, from 61 mln won ($57,340) in 2016 to 2.2 bln won
($2 mln) in 2017.
Yonhap reports that South Korean
exchange Bithumb made 317.6 bln won ($295,368,000)
last year in total, so is expected to pay about 60 mln won in
taxes, according to the tax percentages announced Monday.
The announced tax percentages are in
line with the South Korean tax code for all corporations that make
a yearly income of over 20 bln won ($18.7 mln).
Bithumb, which is the largest
exchange globally at $2.85 bln daily trading volume as of press
time, was hacked in February 2017, losing about $7 mln in
mostly Bitcoin and Ether. This security breach, along with several
other breaches of South Korean exchanges, has recently been more
definitively linked to North Korean hackers.
The South Korean government has
recently been stepping up enforcement of cryptocurrency regulation
within the country. Besides ordering the financial probe, the
government has banned the use of anonymous virtual accounts,
frozen the opening of new virtual accounts, and forbid underage and foreign users from
trading on exchanges.
The South Korean public has fought
back with a petition to stop the recent government regulations.
After reaching the necessary 200,000 signatures, the
petition is currently awaiting an official response from the
government.
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