South Korean authorities consider cryptocurrency and ICO tax

Financial authorities in South Korea are considering imposing cryptocurrency tax, Finance Magnates reported referring local news reports.

In response to a question by a member of South Korea’s Democratic Party, the country’s Minister of Economy and Finance, Hong Nam-ki, said that authorities are planning a cryptocurrency tax and are determining how to implement it.

“We are preparing taxation plans by reviewing cases of foreign taxation through a task force, composed of relevant [governmental departments] and private experts, for proper taxation on virtual currencies,” said Hong. “It is desirable to confirm the concrete taxation plan by taking a detailed look [at the market].”

Furthermore, the minister also implied that authorities would consider an initial coin offering (ICO) tax.

“It is necessary to take a careful approach [to ICOs] considering the market situation, international trends and customer protection problems,” he said. “We will examine the direction ICOs take and the results of a survey by the Financial Supervisory Service and the gathering of expert opinions.”

Earlier this year, the Ministry of Strategy and Finance was reportedly planning to prepare a cryptocurrency taxation plan by the end of June, Financial News reported.

More recently, Ohio became the first state in the United States to allow taxes to be paid in digital currency bitcoin.