Korean government to discuss measures to tax cryptocurrency trading

Now to news that might worry local virtual
currency investors. The Korean government is on the move to tax
cryptocurrency transactions,… on concerns of a bubble and speculative investment. This follows a series of regulatory measures
announced last week. Kim Hyesung has the details. The Korean government is pressing ahead with
plans to tax cryptocurrency transactions in the country amid concerns of a bubble. The finance ministry has created a taskforce
team made up of blockchain experts and National Tax Service officials… to discuss how to
go about taxing virtual currencies like Bitcoin. They will be looking at taxes on capital gains,
income from transfers and value added tax. For value added tax, one question is whether
cryptos are classified as currencies, services or goods. If they go with value-added, then sales of
cryptocurrencies on exchanges will be subject to tax, which could create an issue of double
taxation. Transfer income tax would require personal
information. Given that virtual currencies are now traded
anonymously, the taskforce will also likely discuss related laws and refer to policies
from other countries. On December 13th, the Korean government announced
its main regulatory policies such as banning minors and foreigners from investing in cryptocurrencies,
and a stricter identification process. Such measures come amid the growing craze
over bitcoin and concerns of cyberattacks from North Korea. South Korea has become the world’s third
largest market in bitcoin trading, after Japan and the U.S. More than one million people in the country
are believed to hold at least some Bitcoin, which is equivalent to one out of every 50
citizens. Kim Hyesung, Arirang News.

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