President Joe Biden's budget proposal, which aims to "limit mining activity," might eventually subject cryptocurrency #miners in the United States to a 30% #tax on electricity bills.

Any company using resources, whether they are owned or rented, would be "subject to an excise tax equal to 30% of the costs of power used in digital asset mining," according to a Department of the Treasury supplementary budget explanation paper published March 9.

It was suggested that the tax would go into effect after December 31 and would be phased in over three years at a rate of 10% each year, rising to the top tax rate of 30% by the third year.

The "amount and type of electricity used as well as the value of that electricity" would be subject to reporting requirements for cryptocurrency miners.

#crypto miners who obtain their electricity off-grid would still be liable for the tax and would need to calculate the cost of any "electricity generating plant" output.

Treasury cited "negative environmental effects," "increased pricing for individuals using a grid shared with the operations," and "uncertainty and hazards to local utilities and communities" as reasons for the tax.

“An excise tax on electricity usage by digital asset miners could reduce mining activity along with its associated environmental impacts and other harms.”

The White House acknowledged in a statement on March 9 that it is looking to stop a tax plan for cryptocurrency transactions that it thinks would earn $24 billion.

The tax-loss harvesting practice of selling digital assets at a loss for tax reasons and then buying them again right away is permitted under current regulations for cryptocurrency investors.

The new regulations would align #cryptocurrency trading tax laws with those governing stocks, where such a tactic is prohibited by wash sale regulations.

South Korean tax authorities continue their efforts to uncover and combat tax fraud related to cryptocurrencies. Recently, a raid was conducted in the city of Hwaseong, during which cryptocurrency assets worth over $768,500 were seized.
Cracking Down on Tax Evaders
Raids conducted by tax authorities in Hwaseong are part of their extensive efforts against tax evasion and non-compliance. By seizing cryptocurrency assets, authorities obtain evidence of undeclared income and implement tax measures.
Increasing Pressure for Tax Transparency
South Korea is intensively working to increase tax transparency, especially regarding income from cryptocurrencies. New technologies and electronic systems enable authorities to better monitor cryptocurrency transactions and uncover tax evasion.
Monitoring Cryptocurrency Transactions
Tax authorities utilize sophisticated cryptocurrency monitoring systems to identify undeclared income and tax fraud. These systems allow authorities to scrutinize transactions and identify individuals attempting to evade their tax obligations.
Expanded Investigations and Raids
Raids and investigations conducted by tax authorities target not only individuals but also businesses and organizations suspected of tax fraud. Authorities rely on modern technologies and collaborate with other agencies to ensure compliance with tax laws and prevent tax evasion.
Stringent Enforcement
South Korean authorities make it clear that they will consistently penalize individuals and organizations involved in tax fraud. In this way, they aim to create an environment where all taxpayers adhere to laws and contribute fairly to public finances.
Future Development
Given the constant evolution of technologies and cryptocurrencies, authorities are expected to continue improving their methods for monitoring and uncovering cryptocurrency tax fraud. They are likely to employ increasingly sophisticated technologies and collaborate with international partners to ensure an effective fight against tax evasion and non-compliance.
Conclusion
South Korean authorities are paying increased attention to uncovering and combating tax fraud in the cryptocurrency sector. Their goal is to ensure compliance with tax laws and enhance tax transparency in the country. Through the use of modern technologies and thorough investigations, they strive to create a fair and transparent tax environment for all citizens.
 #tax #Korea #crypto

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

South Korea is gearing up to launch a new monitoring system aimed at ensuring that users of virtual assets fulfill their tax obligations.
Selection of Consulting Firm for System Development
The National Tax Service has selected a consulting firm responsible for developing a sophisticated monitoring system for virtual assets. Information about this decision was disclosed by the local portal Digital Daily. This new system will be capable of thoroughly analyzing and managing transactional data related to digital currencies, helping authorities better monitor and enforce tax rules in this area.
Consultation Project with GTIC
The tax service has chosen GTIC as a partner for developing an integrated system for managing virtual assets. This strategic decision was made at the end of February, initiating a consultation project expected to last approximately four months. During this time, GTIC is expected to develop and implement a system that will enable authorities to effectively monitor and control the flow of virtual assets in the country.
Focus on Tax Gaps and Illegal Activities
South Korea is responding to a recent significant increase in investments in virtual assets, particularly after the approval of Bitcoin Spot ETF trading in the United States. However, this surge in cryptocurrency investments also raises concerns about compliance with tax obligations and possible misuse of virtual assets for illegal purposes such as money laundering. Therefore, South Korean authorities are focusing on regulating and monitoring these transactions to ensure the integrity and stability of the financial system.
Plans to Close Tax Gaps
The initiation of the new monitoring system is part of broader efforts by South Korea to close tax gaps and ensure fair and efficient taxation in the virtual asset space. Following the consultation phase of the project, it is planned that the system will be fully operational by 2025. Authorities anticipate that the new system will enable more detailed and accurate data collection on transactions involving virtual assets, allowing them to better monitor the flow of these assets and enforce tax rules.
KYC Requirements for Crypto Services
South Korea is also taking proactive measures to regulate digital assets by introducing stricter rules for crypto service providers. These new regulations require these companies to enhance their anti-money laundering systems and implement Know Your Customer (KYC) procedures to better identify and verify their users. These measures are intended to ensure greater transparency and security in the digital finance sector.
Expectations for Future Development
South Korea is also considering whether to approve Spot Bitcoin Exchange-traded Funds (ETFs), which could bring further changes in regulation and cryptocurrency trading in the country. Authorities are monitoring this situation and acting to ensure the stability and security of the virtual asset market in line with the latest global trends.
#crypto #tax

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Kenya’s parliament has asked the Blockchain Association of Kenya (BAK) to prepare the first draft of what might become the Virtual Asset Service Provider’s Bill, commonly known as the Crypto Bill. The decision followed BAK’s second appearance before the National Assembly Committee on Finance and National Planning on October 31. BAK’s first engagement with the committee was in August 2023 when it opposed the Digital Asset Tax (DAT) provision in Kenya’s Finance Act, 2023 #tax BAK’s draft preparation coincides with notable cryptocurrency transactions in Kenya, reaching nearly $20 billion (KES 3 trillion) between July 2021 and June 2022. Kenya’s engagement with crypto assets is also high, coming in third position in Africa for crypto site traffic and 21st in global crypto adoption.#CryptoMoj The meeting between BAK and the National Assembly Committee sought to enable BAK to partner with the national government in shaping cryptocurrency and digital asset regulation policies. BAK, alongside Binance, Yellow Card, Kotani Pay, and the Law Society of Kenya (LSK), presented key elements for a robust regulatory framework, including a clear licencing framework, tax framework, consumer protection framework, anti-money laundering (AML) and counter-terrorism financing measures, and a regulatory sandbox.$BTC In response, the parliamentary committee directed BAK to draft and submit a bill governing digital assets within two months. This development acknowledges a knowledge gap that has historically hindered their ability to address this asset class. It also marks a unique instance of a parliamentary committee instructing an association to draft a bill for adoption.BAK’s directive to draft Kenya’s digital asset regulatory framework, including tax integration and revenue guidelines, mirrors efforts in South Africa (Financial Sector Conduct Authority), Nigeria (Finance Act 2023, SEC Regulations on Digital Assets), and Mauritius (Virtual Asset and Initial Token Offering Services Act 2021), which lead in Africa’s crypto market values at $25 billion, $19 billion, and $3 billion, respectively.