South Korea to Simplify Blockchain Investment With New Legislative Changes

Published at: July 13, 2018

South Korea regulators vowed to introduce friendly blockchain investment legislation in a meeting July 13, the latest chapter of an ongoing push to promote the technology nationally.

At the 4th Vice Ministerial Meeting on “Growth through Innovation,” presided over by Vice Minister of Strategy and Finance Ko Hyoung-kwon, the government pledged to make it easier for blockchain businesses to enter the market.

In order to promote job creation and support emerging technologies, the South Korean government plans to both “expand tax reduction for new growth engine investment and ease requirements for new technology support, including the blockchain technology investment support.”

 

The redesigning of corporate investment support comes the same week as Seoul unveiled drafts of bills also aimed at developing rules for Initial Coin Offerings (ICO) and specifying the legal obligations of actors like crypto exchanges.

South Korea has continued to shape its cryptocurrency landscape throughout 2018 after backlash at the beginning of the year over the country’s cryptocurrency regulations resulted in public protests and calls for ministers to resign.

Crypto exchanges in particular have felt the impact of changing legislation, being required since January to pay a corporate and local income tax in line with the country’s tax policy, as well as conform to a strict ban on anonymous and foreign entity trading.

Tags
Ico
Related Posts
South Korea’s Finance Ministry Considers Taxing Crypto and ICOs, New Minister Reveals
South Korea's Finance Ministry is considering taxation on cryptocurrencies and Initial Coin Offerings (ICOs), daily English-language newspaper The Korea Times reports Monday, Dec. 3. Hong Nam-ki, South Korea’s new Minister of Economy and Finance as well as new Deputy Prime Minister, revealed that а crypto taxation plan will be finalized according to global taxation trends in the industry. Pointing to the current ICO ban in South Korea, the deputy prime minister stated that the authorities will also form a new stance to the crypto industry, based on careful consideration of “market conditions, international trends and investor protection issues.” In his …
Adoption / Dec. 3, 2018
Russia: Bitcoin Activity Rising Despite Strict Law Proposals
A branch of the Russian federal government has recently published a draft of new litigation called “On Digital Financial Assets,” which is focused on enforcing strict cryptocurrency laws in the country. The legislation has not been approved yet and has been in discussion since 2018. The new laws define Bitcoin as property but not legal tender, and propose, among many other things, that Bitcoin (BTC) miners register as individual companies so they can be appropriately taxed. President Putin is planning on developing and revealing a new tax for Bitcoin miners by July 1, but many are skeptical about the government’s …
Blockchain / July 1, 2020
Blockchain Research Now Granted Tax Credit in South Korea
South Korea’s government has added blockchain to the fields of research and development eligible for a tax credit meant to boost innovation, English-language local media TheNews.Asia reports on Jan. 8. The local Ministry of Strategy and Finance announced the proposed changes to the enforcement decree of last year’s tax law, which will be enforced in February. The proposed amendments also include among the eligible fields wearable robots and fine dust reduction technology. According to the aforementioned article, a result of this amendment will be that 30 to 40 percent of the research and development expenses of small enterprises and 20 …
Blockchain / Jan. 12, 2019
Korea Blockchain Enterprise Promotion Association Calls on Government to Regulate Crypto
The recently launched Korea Blockchain Enterprise Promotion Association has called on the state to adopt crypto and blockchain technology, local news agency Korea Joongang Daily reports Aug. 8. According to the report, the blockchain association has filed a demand with the government to regulate the new technology to benefit from its opportunities instead of focusing on its negative “short-term side effects.” The association stressed that it demands the government’s regulatory action on both blockchain technology and cryptocurrencies, including Initial Coin Offerings (ICO), Korea Joongang Daily reports. The move aims to assist in generating employment, as well as to “pave the …
Blockchain / Aug. 8, 2018
South Korean Regulators to Introduce New Rules for Crypto and Blockchain
South Korean legislators have revealed drafts of bills intended to develop rules on cryptocurrencies, initial coin offerings (ICOs) and blockchain technology, The Korea Times reported July 11. Lawmakers will reportedly introduce the drafts at an extraordinary session of the National Assembly, which will take place from July 13 to 26. According to the Korea Times, representative Song Hee-kyung of the leading opposition Liberty Party Korea (LPK) has called for regulations on trading platforms in order to prevent money laundering, cybercrimes and personal data leaks. Representative Park Yong-jin of the ruling Democratic Party of Korea, Chung Tae-ok of the LPK and …
Blockchain / July 12, 2018