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Crypto Businesses Eliminated From South Korea Tax Reduction Bill

An official announcement made by the South Korea government on Aug 12 said that the tax reduction bill will eliminate all crypto-related businesses and blockchain projects. All local exchanges and blockchain-related non-profit associations have begun protesting against this announcement.

The South Korea government released a proposal earlier this month entitled “Venture Enterprise Bill”. This proposed bill is a piece of the regulatory framework that’s intended to fuel the growth and development of small and medium scale companies. If the government passes this bill, it will offer a wide range of perks to businesses across various industries. The prime benefit will include a 50 percent reduction in tax.

According to local authorities, crypto exchanges and blockchain projects are exempted from this South Korea tax reduction bill to prevent a rapid increase in speculation in the new asset class. They also expressed their concerns over the present state of cryptocurrency exchange markets in South Korea.

Crypto trading platforms and blockchain start-ups have formally appealed to the government to reconsider their elimination from the bill. The exchanges raised the point that the speculation within the crypto exchange market in December 2017 was unprecedented. They also further added that with the new regulatory frameworks created by FSC in place will prevent the local crypto exchange market from demonstrating such high level of volatility, speculation, and instability.

As mentioned in the BTCManager report, the exchange operators also argued that the government’s new regulatory framework will force digital asset brokerages to adopt security systems, anti-money laundering policies, and internal management systems. Thus they feel that the South Korea government must not exclude them from the tax reduction bill and give them a fair chance. If local financial authorities continue imposing policies that place crypto exchanges in an unfair position, the government’s efforts to legitimize the blockchain and cryptocurrency sector may turn futile.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Jesmine Rahman holds 15+ years of professional writing experience of working with reputed Indian dailies like the Times of India and the Indian Express. She also holds a rich experience of working as a Senior Technical Content Specialist with a reputed IT company. for 10 years. She writes crypto news on OWLT Market.

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