Blockchain in Singapore to push ASEAN Financial Inclusion

The government of Singapore is aimed to enforce blockchain development in order to improve financial inclusion for Southeast Asian countries
09 April 2018   776

On Friday Heng Swee Keat (Singapore's minister for finance) in his starting report for a meeting with finance ministers from Southeast Asian countries, underlined the government's objects to develop innovations such as blockchain to improve access to finance in the region.

In particular, we will support digital innovations like fintech. For example, the underlying distributed ledger technology presents us with many opportunities for cheap and secure transactions. This can promote financial inclusion for underserved and underbanked segments in ASEAN. 

Heng Swee Keat, the Minister for Finance, Singapore.
 

Though the minister did not reveal the details on any blockchain decisions, his remarks come at the same time when the governments in Southeast Asia have been directing efforts to expand and adopt blockchain technology in the financial sphere. Singapore's Infocomm Media Development Authority (IMDA) has begun a blockchain contest with government funds to boost blockchain innovation in the country.

Also, the neighboring state of Malaysia is stepping to accept blockchain technology to improve banking services in the region. The deputy governor of Malaysia's central bank in his speech in March pointed out that nine banks in the country have already started working with the central bank in enforcing blockchain powered applications for trade finance.

Thailand's Siam Commercial Bank is as well constructing out a Ripple-based blockchain money order platform for cross border payments.

Bithumb Filed Appeal Against Korean Tax Office

Looks like the korean exchange doesn't really want to pay an additional tax worth $67 000 000
16 January 2020   124

The South Korean cryptocurrency exchange Bithumb has filed a complaint against the National Tax Service (NTS) because of the requirement to pay additional taxes for the transactions of its foreign customers.

The company claims that cryptocurrencies do not have an official status in the territory of South Korea, which is why the authorities cannot have sufficient reasons to levy any taxes.

The tax court will have to decide within 90 days whether to retain or withdraw from Bithumb the obligation to pay the $ 69.1 million tax that was assigned to it by NTS in November. The Office declares that the withdrawal of income from accounts in Korean won by foreign residents is a taxable event. It is assumed that the exchange itself had to withhold tax from its foreign customers.

We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.

 

Bithumb

 The ministry has its own position on this issue.

Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.

 

Choi Hwoa-in

Adviser to Financial Supervisory Service

According to the expert, the NTS maneuver is well thought out and aimed at starting to levy a tax on income that is currently not taxable.

We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal.

 

NTS

Earlier, Bithumb was ordered to pay an additional $ 67 million in tax.