Via Fortune:
South Korea’s government is hitting the country’s cryptocurrency exchanges with massive tax demands, in its latest attempt to rein in the booming and volatile sector.
According to a finance ministry official, cited in a Yonhap report on Monday, South Korean cryptocurrency exchanges will this year need to pay 22% corporate and 2.2% local income taxes on last year’s earnings by the end of March and April respectively, if they had an annual income of over 20 billion won ($18.8 million) during 2016.
The report suggested that the Bithumb exchange, for example, would need to pay around 60 billion won for its earnings during last year.
On Sunday, Yonhap quoted another official as saying cryptocurrency exchanges would soon be required to share users’ transaction data with banks—another move that would help the authorities collect tax.
Shitcoin BTC no likey as it moves to new closing lows:
Meanwhile, backome:
Currently, the AML/CTF laws apply to authorised deposit-taking institutions (ADIs), banks, building societies, credit unions and other persons or entities specified by AUSTRAC, but the new amendments will seek to extend them to digital currency providers.
Law firm Dentons, which rebranded from Gadens Sydney in December 2016, has outlined the ways in which the AML/CTF laws might apply to digital currency providers.
“Digital currency providers will soon be required to adhere to the AML/CTF standards required for remittance sector providers,” said Dentons.
Providers would be required to adopt and maintain an AML/CTF program, conduct “thorough” identification and due diligence of customers, report on suspicious matters and threshold transactions, and retain the required records according to the AML/CTF regime, according to the note.
“The draft rules mirror the rules as they currently apply to the remittance sector,” it said.
“Providers will be required to register with AUSTRAC under a regime similar to the current registers for the remittance industry.”
Furthermore, when reporting on suspicious transactions, providers will have to provide additional information where the transfer would involve digital currency.
This would include the code of the digital currency as well as the number of digital currency units, the equivalent amount in Australian dollars, a description of the digital currency including details of the backing asset or thing, the IP address of the beneficiary and/or payee, the social media identifiers of the beneficiary and/or payee, the unique identifiers of the beneficiary/payee’s digital currency wallet(s), and the unique device identifiers of the beneficiary and/or payee.
“If you are a digital currency provider, it is time for you to start thinking about how you will manage your new obligations under the AML/CTF regime,” the note said.
“This most importantly includes drafting and maintaining an AML/CTF program and KYC [Know Your Client] policy, in addition to systems and procedures which will identity any AML and CTF risks in your business.”
The consultation period will close 13 February 2018, and the draft rules are expected to come into effect in April 2018.
