Philippines to License 10 Crypto Companies

The Philippines will allow 10 crypto-related companies to work in their economic zone, providing them with tax benefits in exchange for jobs and fees
26 April 2018   1017

These 10 companies will be the first representatives of the cryptocurrency business, which will start working in the Philippines after the creation of a special economic zone in February. This is reported by Reuters.

We are about to licence 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, Koreans. They can go into cryptocurrency mining, initial coin offerings, or they can go into exchange.
 

Raul Lambino 

Chief, Cagayan Economic Zone Authority (CEZA)

Despite the permission received, the exchange of cryptocurrency for fiat and back should be conducted in off-shores in order not to conflict with local legislation, he added.

CEZA in February developed a set of rules designed to regulate cryptocurrency companies that can register in the special economic zone of the Philippines.

They must invest at least $ 1 million in two years and pay $ 100,000 as a license fee.

The Central Bank of the Philippines does not approve the use of cryptocurrency, because it believes that they can be used to commit unlawful acts.

The regulator of the economic zone intends to establish educational institutions on its territory that will train personnel for cryptoexchange companies.

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   119

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.