Switzerland to Regulate Crypto Within Existing Laws

The Council proposes to change the current legislation in the field of securities, so that the situation around cryptocurrency tokens becomes more specific
17 December 2018   734

The Swiss government expects that it will be able to incorporate new financial technologies into the existing legal framework.

On Friday, the country's Federal Council published a report in which it described the legal norms for the technology of the distributed ledger, while acknowledging that they still need to be improved.

The Council proposes to change the current legislation in the field of securities, so that the situation around cryptocurrency tokens becomes more specific.

Since an entry in a decentralised register accessible to interested parties can create publicity similar to the ownership of a security, it seems justified to attach similar legal effects to this entry.
 

The highest executive authority of the Swiss Confederation

In addition, the authorities intend to separate cryptocurrency assets from the common property of persons declared bankrupt. The current legislation in this area does not give a clear answer to the question of how to handle such assets during the bankruptcy procedure.

Infrastructure providers in the blockchain sector are invited to be placed in a separate “authorized category” and taken into account in the law on the infrastructure of financial markets. Other changes to this law are subject to further discussion, since the concepts of securities and derivatives are also applicable to blockchain markets.

The Council does not consider it necessary to change the legislation in the sphere of combating money laundering, because it is already so effectively applied to regulate cryptocurrencies and ICO.

The Swiss government has been dealing with blockchain industry regulation since 2016. It was then that the country's finance ministry announced its intention to take control of financial technologies.

Recently, the Swiss Financial Market Supervision Authority (FINMA) submitted a “lightweight” license for representatives of the fintech sector, which can be obtained by companies working with blockchain and cryptocurrency.

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.