Bitcoin Forum

Central Bank of South Korea: Bitcoin Is a Commodity, Not a Currency

The South Korean central bank have announced that they will classify digital currencies as commodities rather than currencies. Whilst regulation is yet to be confirmed, the decision will certainly have an effect within the third largest global crypto trader's borders.  The declaration on Monday comes as the first news from the nation of South Korea regarding digital currency since the ban on initial coin offerings which came into place following China’s similar ruling this September.

http://www.newsbtc.com/2017/10/27/south-korea-central-bank-bitcoin-commodity-not-currency/

The commodity wise comes to my mind with physical objects and materials that can easily be turned into money. Bitcoin is definitely a real currency unit.

It's good that they think so. If to consider bitcoin a commodity it is not possible for the government to demand payment of taxes for the use of bitcoin. When you are able to buy things with bitcoin it will be a barter transaction and it is also not taxable. I support this decision. I hope all government will think.

It seems to me that there will still be taxes. The bank did not recognize the Cryptocurrency in cash, but he pointed out that the Cryptocurrency has value. This means that the goods can also be taxed

I don't see anything bad in crypto getting taxed. If people are required to pay tax traditionally in basically every aspect, there is no way that crypto will be treated differently ~ this market is no longer a fun thing.

Everything crypto related has been progressing in such a rapid pace, that governments just can't keep up with it. Slowly but surely we'll be seeing how more regulations will change this market further.

It's not for nothing that certain exchanges (Poloniex & Bittrex) that were operating loosely when it comes to the law, are now suffering from huge loads of user complaints ~ something that has cost Poloniex its reputation.

If the crypto currency itself is a measure of value, it can not be a commodity at the same time. The central bank of South Korea has taken some chances. Now the state can not in any way determine what is the crypto currency and what place it should be allocated among other means of payment, so the crypto currency is an unusual and revolutionary phenomenon.

Regardless of how they classify Bitcoins, commodity or currency, I am always reminded that I still earn out of it because it is convertible at the same time salable to fiat. I need not worry much if the Bitcoin situation is the same as it is today since I have the absolute liberty to convert whatever I have in my Bitcoin wallet to fiat. It is not something I am most concerned of at the moment. What concerns me is what will happen should Bitcoins' system shuts down?

I think this decision is mostly political as many other governments also refused to recognize Bitcoin as a currency and gave it a status of commodity instead - most notably the US. By denying Bitcoin the status of a currency they try to prevent it's adoption as such, so people would think about it more as a speculative asset. But most countries don't have any strong position, and since everything that is not banned is allowed, Bitcoin can be used as a currency around the world with no repercussions.

This is not necessarily bad. The uses of Bitcoin are subjective to each user and it obviously can be used as currency at least with limited options compared to other more popular alternatives.

I agree. There's no bad in the South Korean decision. They can still taxed it just like any commodity which for me is their goal. And anyone is really free to convert it to their traditional fiat, there's is no love lost in between.

The main thing is that they still support bitcoin and crypto and this decision really proves that they won't turn its back against it. They understand that crypto or bitcoin is a revolution that will change the world. Would be better on its side than against it, specially its gonna be a winning moment for all of us.