South Korea Blockchain Associations For Retaining Tax Benefits

August 17, 2018

Some South Korea-based blockchain communities oppose the governmental measures that may hamper development of digital currency innovational technologies.

The communities take a stand against the initiative proposed by the South Korea's Ministry of Small and Medium Business and Startups on August 13 with the view to alter the existing venture business legislation. In accordance with this initiative, digital currency exchanges may be categorized as entertaining and gambling business.

The purpose of the initiative, as the ministry explains, is caused by problems arising in society, for instance, speculation realized via crypto exchanges. This however does not correspond to the recently voiced governmental plan to reassess the current legislation and strip the platforms of tax perks.

The initiative has produced negative effect on some blockchain communities that blamed the government in slowing down the innovative technologies development as this may influence both crypto exchanges and the whole blockchain industry.

With these amendments made, local organizations following IBM by the number of blockchain patents will be pulled out from the venture business category only by reason of exploiting digital currencies. This will complicate investing in projects for organizations engaged in blockchain issues. Finally, they will have to either cease operations of move abroad.

This is by far not the first initiative by the ministry to regulate crypto speculations in the country.

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