One of the largest crypto exchanges in South Korea, Bithumb, has pledged to invest $8 million into South Korea’s “regulation-free” zone for blockchain development in Busan. National Tax Service of South Korea recently slapped Bithumb with a $69 million bill for withholding taxes on profits earned through international clients.
South Korean authorities lifted 11 regulations to make Busan regulation-free zone.
The South Korean authorities want blockchain and crypto projects to focus on the public sector with ideas that would help in tourism, consumerism, and public safety. Even though the place is called “regulation-free,” but there are still some restrictions. Businesses can not engage in Initial Coin Offerings. The South Korean government had lifted 11 regulations for businesses and startups leveraging blockchain.
Crypto profits are not taxable in South Korea for now.
Earlier, the government of South Korea revealed that the profits earned by an individual from cryptocurrencies are not subjected to income tax. Currently, there is no legal definition of cryptocurrencies in South Korea. But the government noted that they are studying approaches of different major countries on how they should go about taxing cryptocurrencies. The Ministry of Economy and Finance is expected to propose a bill this year that would tax cryptocurrencies.