The government of South Korea is set to implement substantial tax bills on its Bitcoin Exchanges. This is its recent attempts to rein in the booming and volatile cryptocurrency sector.
According to Yonhap reports on Monday citing the Ministry of Strategy and Finance official, South Korean Bitcoin exchanges will need to pay 22% corporate and 2.2% local income taxes on previous year’s earnings by the end of March and April respectively.
Every company earning more than 20 billion won (US$18.7 million) is affecting by the new regulation.
For instance, Bithumb exchange would need to pay around 60 billion won for its last year’s earnings of about 317 billion. There was yet another quote from the official that exchanges would share user transaction data with banks. And also help authorities to collect a tax. The government said it intended to end anonymous crypto trading from January 20.
More than 2 million people in South Korea own some of the best digital currency platforms. Thus, South Korea hosts one of the most significant private Bitcoin exchanges in the world. The country’s cryptocurrency crackdown can be blaming as the main reason for bitcoin’s volatility. In the previous month, the government initiated real-time policies for crypto exchanges and banned investors from creating cryptocurrency accounts.
Furthermore, the Country’s Financial Services Commission ‘s chair reported to the parliament. It is that the government is still considering closing down all local crypto exchanges.
The country has also been in the news recently with some people calling for the sacking of the minister for market manipulation after he had announced falsely that the government had banned cryptocurrencies.