The South Korean government is planning to tax cryptocurrencies and initial coin offerings (ICOs), says finance minister nominee Hong Nam-ki.
According to him, the ministry is preparing new taxation plans that will be made after consultation with experts and looking at foreign taxation rules, this way, he believes that they can be desirable and work well.
The plan is only in the early stages yet so it will change a lot before the idea is finally enforced. Lawmakers are still determining how the tax should be implemented.
The idea to tax cryptocurrency has been floated around since the beginning of crypto’s mainstream use, and South Korea has been at the forefront of creating a legal infrastructure for dealing with digital currencies, so unsurprisingly they appear to be among the first to publicly put forward solidifying plans of taxing crypto-related income.
The economy minister also implied that South Korean authorities would be looking at an initial coin offering (ICO) tax. Determining what that would look like is even more difficult as Hong himself seemed unsure as to what form an ICO tax would take.
He said whether to allow ICOs — which are banned in Korea — would be carefully considered after watching market conditions, international trends, and investor protection issues.
“We will determine our policy orientations on ICOs with relevant agencies after reviewing the results of the financial regulator’s market survey and getting feedback from experts,” he said.