South Korea bans ICO

Following China, South Korea bans an initial coin offering campaigns; top coins fall
29 September 2017   3633

South Korean authorities will ban all types of initial coin offering (ICO) due to the risk of scam and fraud. This is reported by the ZdNet. 

The Financial Services Commission (FSC), the country's finance regulator representatives noted that the ICOs are a popular tool for raising funds by start-ups and individuals. However, at the same time, they carry the high risks of "financial bubbles", various market manipulations and do not promote the protection of investors' rights.

Also, state representatives say, ICO is often held for purely speculative purposes.

Separately, it is noted that FSC has not yet "institutionalized" the exchange of digital currencies. Currently, the agency is carefully examining the situation on the market in order to further improve the effectiveness of regulatory measures.

At the same time, there is still no clarity about the scope of the ban. So, according to News1, FSC "bans all types of ICO in Korea." At the same time, the JoongAng publication informs that the ban will concern only ICOs conducted by South Korean start-ups, and also refers to officials who claim that the restrictions do not apply to private investors.

Top cryptocurrencies price chart
Top cryptocurrencies price chart

As you can see from a charts above, market's reaction is quick as always. In top ten, only IOTA continues to grow.

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   122

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.