Korean Authorities May Take Off Tax Perks From Exchanges

It is unknown can local minners be affected with this decision
30 July 2018   230

South Korean crypto exchanges may soon lose the right to substantial tax benefits granted to small companies. This is reported by CoinDesk.

The government of South Korea proposed to revise the tax legislation and, in particular, to exclude the crypto exchanges from the category of start-ups or SMEs. The latter have the right to reduce taxes up to 100%.

So, according to local laws, start-ups and SMEs can apply to the authorities for a discount on income or corporate tax of 50-100% during the first five years of business existence. Five years later, small companies can also apply for a tax preference, but already at a rate of 5-30%. It is unknown can local minners be affected with this decision.

However, the government decided that the provision of preferences to crypto-currency platforms is inappropriate. According to officials, "crypto-currency brokering is not an effective source of creating added value."

The draft amendment to the legislation will be submitted for discussion to the National Assembly on August 31. However, under any scenario, benefits will be provided to start-ups, which are focused on research and creating new products. Thus, the government of South Korea is trying to stimulate the development of new technologies in the country.

In general, in South Korea, there is a clear tendency to tighten the regulation of the cryptoindustry. So, the other day the local Financial Services Commission urged the National Assembly to enact laws urgently strengthening the exchange of digital currencies.

SoftBank to Deny Deal With Bitmain

It is noteworthy that Tencent has not yet commented on the situation
20 August 2018   92

The Japanese media corporation SoftBank came out with an official refutation of its participation in the investment deal with the largest manufacturer of mining equipment Bitmain. This is reported by Cointelegraph.

Information on the participation of Tencent and SoftBank in the financing of Bitmain appeared at the beginning of the month. Then it was reported that Tencent and SoftBank invested $ 1 billion.

Neither the SoftBank Group Corp. nor the SoftBank Vision Fund were in any way involved in the deal.

Kenichi Yuasa

Corporate Communication Office, SoftBank Group Corp.

It is noteworthy that Tencent has not yet commented on the situation.

According to the chief strategic director of Blockstream Samson Moe, Bitmain is increasing the pace of financing due to unsatisfactory financial results of the second quarter. He estimates the company's losses at $ 600-700 million.

Bitmain plans to leave on IPO already in September. Estimates of the volume of future investments vary from $ 3 billion to $ 18 billion.