Korean Authorities May Take Off Tax Perks From Exchanges

It is unknown can local minners be affected with this decision
30 July 2018   443

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.

Bitmain to File IPO Application

The application was sent to Hong Kong Stock Exchange (HKEX)
27 September 2018   384

The largest mining company Bitmain has submitted to the Hong Kong Stock Exchange (HKEX) listing application for an initial public offering (IPO), according to CoinDesk.

The application is a draft option, and some of its details, in particular the number of shares offered for sale and the immediate date of the IPO, are still in the process of editing.

Nevertheless, the document indicates that last year Bitmain's revenue was $ 2,517,719,000. This figure is higher than in 2016 ($ 277,612,000). As of June 30, 2018, the company's revenue was $ 2,845,467,000.

The application said that in 2017 the gross profit of the company was $ 1 212.7 million, which is also higher than in 2016 ($ 151,351,000).

Earlier, the head of Bitmain, Jihan Wu, expressed his indignation over the actions of the company's chief financial officer, who disclosed the figures for the first quarter 60 days after his end, and not after 90, as he had expected.

The media suggested that in the run-up to the IPO the publication of such information could have a negative effect on the company's investment attractiveness.

In addition, the document confirmed the media's information that Bitmain owns a 3% stake in Opera's Internet browser thanks to an investment of $ 50 million.

The application also indicates that the underwriters of the IPO are China International Capital Corporation Hong Kong Securities Limited, Commerce and Finance Law Offices, Maples and Calder LLP, KPMG and Frost & Sulliva