South Korea might not be tax haven for cryptocurrency exchanges much longer

South Korea might not be tax haven for cryptocurrency exchanges much longer

Cryptocurrency exchanges based in South Korea are currently operating under very favorable tax laws. Many crypto exchanges are based in S

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  • Cryptocurrency exchanges based in South Korea are currently operating under very favorable tax laws.

  • Many crypto exchanges are based in South Korea due to a tax law enabling start-up businesses to be eligible for a 50-100% tax refund.

  • In a recently proposed revision to the current tax law, crypto exchanges would be excluded from this tax law.

  • South Korea is considered to offer a cryptocurrency friendly environment, should this change, they might lose that.

The tax perks for crypto exchanges in South Korea might be gone soon

A new proposal on the existing tax law is looking to end the tax benefits for crypto exchanges in South Korea. The current law enables tax refunds of 50-100% for the first five years, and 5-30% after the start-up period.

The main reason seems to be that crypto exchanges do not add enough value to justify the tax reduction.

A new and revives bill will be presented on 31st of August, if the South Korean Government approve the new bill, they will implement it in the near future.

Which country will become the king of cryptocurrencies?

South Korea has attracted a lot of business as they are a cryptocurrency friendly country. If the government decide to rock the boat too much, this might just change.

Malta seems to be another good location that is of interest for cryptocurrency exchanges.  As we all know, Binance, the worlds biggest crypto exchange, is to launch in Malta. In a recent interview, Binance CEO Changpeng Zhao disclosed that Binance had open a Maltese bank account.

The Maltese prime minister has on several occasions made it clear that Malta wants to attract cryptocurrency businesses. And, Malta has proven to offer a friendly environment for crypto exchanges

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