South Korea’s legislative communion proved to be very fruitful for the crypto space, as it vowed yesterday, July 18, to cut taxes on blockchain companies.
According to CoinDesk Korea, the country’s lawmakers will be creating a legislation that is blockchain-friendly, as the taxes imposed on similar technologies will be revamped, of course to the blockchain firms’ favor.
This will immediately benefit about 157 technologies in 11 areas which belong to what the legislation describes as “new growth technologies,” which includes blockchain, security, quantum computing technology, and commercialization plants.
Also included in the announcement is the lowering of the threshold for those applying for tax cuts. Currently, the threshold is set to more than 5 percent of research and development (R&D) sales in contrast to last year’s, and at least 10 percent of new growth technology research and development (R&D).
The recent announcement could just be one of the many improvements in the country’s crypto and blockchain regulation.
The timing could not have been more right, since the crypto world endured a terrible assault last month when two South Korean exchanges were hacked, with the culprits nabbing millions-worth of cryptos. Indeed, the assembly is a much-needed measure for the government to address the demands of its citizens, who consider cryptos a “happy dream.”
Truly, the South Korean dream is coming alive.
The country’s National Assembly began on July 13 and will conclude on the 26th. South Koreans, as well as the world, are keeping a close eye on the results of the two-week gathering. Interestingly, many experts are partly attributing the recent increase in Bitcoin’s price to the developments in the said assembly.