South Korea Changes Crypto Procedures, Azerbaijan Tax Interpretation

This article was published on: 05/7/18 7:18 PM

Marcin IwańskiWritten by | exchange, news, regulations

South Korea Changes Crypto Procedures, Azerbaijan Tax Interpretation

Stricker procedures in South Korea

New regulations for South Korean cryptocurrency exchange markets; the Financial Services Agency (FSA) has issued stipulations for domestic crypto exchanges. Efforts to change current laws are made to prevent situations like with Coincheck, where hackers stole $532 mln in cryptocurrencies. According to Nikkei Asian Review, identifying potential risks in advance has been a challenge for the watchdog.

From now on, cryptocurrency exchange platforms will be required to monitor customer accounts multiple times a day for suspicious fluctuations. Client assets will have to be managed separately from those of the exchange. Also, cryptocurrency holdings will be stored on offline systems. The AML and KYC procedures will be stricter.

Fixing regulations

According to The Korea Times, the governor of South Korea’s Financial Supervisory Service (FFS) said that he sees positive aspects of cryptocurrencies and that the FFS will be working on cryptocurrency regulatory “issues” in collaboration with other regulators. As Yoon Suk-heun said, better cryptocurrency regulation will make usage of cryptocurrency and whole crypto-financial safer and more accessible.

Last December, South Korea banned anonymous trading on the Korea-based exchanges, which was the reason behind a rumor that the government will ban cryptocurrency trading in their country. However, the officials who are also banned from trading and holding cryptocurrencies, say that “cryptocurrency ban is impossible.”

Taxes in Azerbaijan

Azerbaijan’s Taxes Ministry outlined the new measures during the FIF 2018 according to Trend.

Nijat Imanov of the country’s Taxes Ministry said

“This is formalized as a profit tax for legal entities and income tax for individuals. If someone bought a cryptocurrency and then sold it after its price increased, this amount is recorded as income and therefore should be attracted to taxation.”

With such big growth of interest in cryptocurrencies, all countries are issuing tax regulations or tax regulation interpretation about crypto. From now on, Azerbaijan will treat earnings from cryptocurrencies as income and should be attracted to taxation.

 

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Last modified: May 7, 2018

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