skbitc - Cryptocurrency Exchanges in South Korea Registered $648 Million Taxable Revenue for 2017

Cryptocurrency Exchanges in South Korea Registered $648 Million Taxable Revenue for 2017

South Korea had a moved 2017 regarding cryptocurrency regulations. The country actively participates in the crypto market and several enterprises need it in order to keep operating. According to figures released by the government, South Korean exchanges generated $648 million dollars revenue in 2017.

Crypto Exchanges Revenues

South Korea has a very active population in the cryptocurrency market. Thousands of millennials trade daily on the different cryptocurrency exchanges available in the country. Upbit, for example, generated more than half of the total crypto exchange revenue in the country.

The lawmaker Park Kwang-on explains that South Korean exchanges registered an incredible revenue growth compared to 2016. 2017 registered an extraordinary increase of 8025% compared to the year before when it amounted $7.5 million.

The South Korean market was in very healthy conditions before the government decided to impose restrictions and sanctions to banks and traders. Now that the market is more settled after the intervention of the government, new tax obligations continue for exchanges for the last year.

In January 2018, lawmakers have expressed that cryptocurrency exchanges had to pay 24% of local income tax and corporate tax, an amount in line with the existing tax policy. The most important cryptocurrency exchanges in the country, Upbit, Bithumb, Coinone and Korbit must pay the corporate tax by the end of March and the local income tax by the end of April.

According to the local news source, the government has accumulated commission-related sales of 30 cryptocurrency exchange operators in the Asian country.

Bitcoin Rises as South Korea Supports Trading

At the moment of writing this article the most important cryptocurrency, Bitcoin, is being traded around $11.300 dollars. The rally that the cryptocurrency is experiencing has been reinforced by news from South Korea. According to Bloomberg, Choe Heungsik, governor of South Korea’s Financial Supervisory Service, told reporters that they want to see a normalized trading of digital assets.

Arthur Hayes, Chief Executive Officer of BitMEX explained:

“South Korea did not ban Bitcoin. We have now gone up almost double in the last few weeks, and I think a lot of this is people coming around to the fact that Bitcoin trading is not going anywhere.”