Asia Blockchain Updates 2019.12.09 Korea will TAX Cryptocurrency, Alibaba + Guangzhou for Blockchain Administrative system
Korea will Tax on Cryptocurrency, then When?
North Korean’s Great Interest on Cryptocurrency, why?
Alibaba Leads building the Blockchain Administration system with Guangzhou City China
North Korea’s Great Interest in Blockchain, Following CoinDesk and Cointelegraph on Twitter
According to the NK Economics on Dec 6th, One Twitter account for the Marine Chain Platform project was found by the UN Security Council, publicly known as North Korea’s camouflage project. This account was created in November 2017.
The UN Security Council said last September that North Korea established a fake company called “Marine Chain Foundation” in Hong Kong to pursue the blockchain crypto project in April 2018. According to the United Nations, the project has a concept of tokenizing ship ownership and generating income. Owners who own ships all over the world participate in the marine chain platform to digitize ship ownership and sell tokens.
According to the Marine Chain Project, This allows ship owners to reduce their cost and secure funds for new ship purchases. The person who purchases the tokens can receive the revenue generated by the ship or sell the token to another person. In other words, ship ownership is bought and sold by their tokens like a stock listed on the exchange.
The Marine Chain Foundation was planning to issue the Marine Chain Token (MCT) based on Ethereum.
The initial funding target through MCT was a total of 20 million USD. The foundation planned to establish and operate the Marine Chain Exchange to generate profits from the commission fees for ship-based tokens.
However, the UN found that the actual owner of the Marine Chain Project and Foundation is a North Korean, Julien Kim.
There have been observations that North Korea is interested in blockchain and cryptocurrency. According to the NK, Marine Chain Foundation known as the North Korean account for crypto is currently following Coin Telegraph and Coindesk on Twitter. North Korean authorities are also interested in cryptocurrency to avoid financial sanctions. In April this year, a blockchain and cryptocurrency conference was held in Pyeongyang, the capital city of North Korea.
Alibaba to Support China, Blockchain + Administration Project in Guangzhou City of China
There is one administration project backed by Chinese IT giant, Alibaba and Guangzhou city which will be built based on blockchain. This is the first attempt to apply blockchain technology to administrative services in China, which has been applied in the areas of finance, tax, logistics, and trade in the past.
According to China Securities Times, Alibaba decided to develop ‘China’s first administrative service based on Public chain’ with Haizhou District in Guangzhou, China.
Alibaba and Guangzhou city will actively apply the characteristics of blockchain, Decentralization, to the project to create a system that can share administrative data while improving data privacy, security, and reliability in each sector of government.
To this end, both entities are planning to increase management transparency by using blockchain technology throughout the entire process, including standard information, electronic data, and processing results.
In addition, it will create a ‘book-keeping’ credit system with blockchain technology. In the system, the information sharing system can be created that will be managed in one place and recycled in many ways, allowing government sectors, businesses, and the public to have their own information nodes throughout the process.
In the end, the ultimate goal of the project is creating a ‘trusted electronic proof-verification service’ while allowing various proofs to be examined on the blockchain. This is to improve the reliability of submitting processing data online.
In this process, blockchain technology is expected to play an important role in data sharing, business process improvement, administrative cost reduction, double processing efficiency, and building a reliable administrative system.
Korea Government Imposes Tax on Cryptocurrency
According to the HKB News, the Korea government has decided to impose income taxes on transactions of virtual assets (cryptocurrencies).
The Ministry of Strategy and Finance announced on Dec 8th that it will set a tax policy on the income tax of virtual assets and plan to include a detailed plan for revising the tax law next year 2020.
There has been a move to tax virtual assets esp Cryptocurrencies since 2017. In particular, Hong Nam-gi, Deputy Prime Minister and Minister of Strategy and Finance, in December last year organized the Virtual Taxation Task Force and actively pushed for taxation on cryptocurrency.
The government plans to revise the current Income Tax Law first to establish a legal basis for the taxation of virtual assets. The current income tax law does not specifically definite the income from virtual asset transactions.
The government is concerned about whether the income from virtual asset transactions should be defined as ‘Capital Gains ‘ such as stocks or real estate transactions, or ‘other incomes’ such as prizes, lottery winnings, and manuscript fees.
About the taxation on Cryptocurrencies, foreign countries have several different viewpoints. The Japan Taxation Office plans to impose income tax on cryptocurrency transactions from last year and decided to implement it on January 1, 2020.