According to Yonhap (a South Korea news agency) the government announced a 24.2 percent corporate and income tax requirements on all crypto exchanges on Monday 22nd January. This will see Korbit, Bithumb, Coinone and other South Korean crypto exchanges pay a whopping $300 billion by 30th of April.
These developments come just weeks after South Korean banks were reported to have concluded their grappling with the unexpected anti-money laundering probe that saw a good number of Bitcoin and cryptocurrency activity-related accounts in the country being frozen.
Petition by South Korea’s Public Underway
These developments coincide dramatically with South Korean public’s fightback attempts against the government’s enforcement of hash continuous regulations on the crypto market and crypto-related activities in the country. Just recently, the South Korean government stepped in to order financial probes into crypto activities and bank accounts, going as far as banning the use of virtual accounts, and forbidding foreigners and underage individuals from trading in crypto.
In response, the South Korean public protested by acquiring over 200,000 signatures in a petition that will see the stop of some of the government’s regulations.
But even with this existing backdrop of uncertainty, resistance and pullbacks, the South Korean government is focused on ensuring crypto exchanges pay the 24.2 percent tax, citing the fact that these obligations are in line with existing South Korean tax policies.
Security Breaches in Cryptocurrency Exchanges
Last year alone, Bithumb ( the largest exchange in the South Korea and possibly the entire world, made a total of $295,368,000 in revenue. Now, the giant crypto exchange is projected to pay about $18.7 million in taxes by the due date of 30th April 2018.
Bithumb was reportedly hacked about a year ago, losing millions worth of Bitcoin and Ethereum in an attack that is believed to have come from South Korea’s neighbor, North Korea. This is believed to be one of the many security breaches that have triggered South Korea’s firm stance on Bitcoin and cryptocurrencies.
Do you think South Korea will succeed in regulating and taxing crypto exchanges in the country? Share your thoughts and opinions with us in the comments section below.