Crypto Exchanges Protest Against Korea's Removal of Crypto Businesses from Tax Reduction Bill
The government of South Korea has made a very controversial decision which provoked the exchanges to protest. They removed cryptocurrency business from its tax reduction bill. The decision was pretty quick.
Local crypto exchanges and blockchain-related non-profit associations have started to formally protest against the government of South Korea for its controversial decision to remove cryptocurrency businesses from its tax reduction bill.
Earlier this month, the government of South Korea released a proposition entitled "Venture Enterprise Bill", a bit of administrative system planned to fuel the development and advancement of small to medium-sized organizations. If passed, the bill will give an extensive variety of advantages to organizations over different enterprises, including 50% of tax reduction.
On August 12, the government of South Korea officially made a statement that the blockchain project and cryptocurrency-related business will be taken out of the bill. There are restaurants, bars and event operators that are included in the list that will be taken off from the bill.
Local authorities expressed that blockchain projects and cryptocurrency exchanges were wiped out from the bill to prevent a rapid increase in speculation in the new asset class, communicating their worries over the present condition of the cryptocurrency trade market in South Korea.
A year ago, in December, the demand for digital assets in the nation flooded to a point in which existing supply of cryptocurrencies on the local trading exchange was not adequate to encourage the exponentially increasing volume driven by new purchasers and examiners.
Subsequently, the Financial Services Commission (FSC) and other financial offices in South Korea forced a few arrangements to impose with the so-called "Kimchi Premium" in the local trade market, which achieved 30 to 40 percent in late 2017.
Nine months ago the price of Bitcoin peaked at around $19,500 in the global market, in South Korea.
The investors then took over the dominant cryptocurrency at around $24,000, with a premium of 40 percent.
As per the statement by local publications, cryptocurrency trading exchanges and blockchain startups requested the government formally and in all ways to re-think on their decision of the elimination of cryptocurrency-related businesses from the bill.
Cryptocurrency trades argued that theory inside the crypto trade showcase in December of a year ago was extraordinary, and with new administrative systems made by the FSC set up, the local cryptocurrency trade market won't exhibit such an abnormal state of stability, unpredictability, and speculation.
More significantly, cryptocurrency trade administrators argued that the government's new regulatory structure relating to the digital asset sector, which basically recognizes cryptocurrency trades as banks, will constrain digital asset businesses to take safety efforts, internal administration system, and anti-money laundering (AML) strategies used by entirely regulated financial organizations.
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