Bitcoin Forum

any truth to this?

seems okay or at least better than a ban?

Sounds like good news??

https://cointelegraph.com/news/s-korea-to-tax-crypto-exchanges-242-percent-in-line-with-existing-tax-policy

Isn't that a bit too much of tax?
and how would they regulate taxation protocol when holders of crypto transact anonymously?

But yes it is better than totally banning it! However, doing so would have a domino effect on other countries.. and people are used to no regulations with cryptos

but isnt expecting zero tax on any profits unrealistic long term?

also i just read this is on exchange owners only not individuals i guess they will pay as regular income tax or capital gains tax

https://cointelegraph.com/news/s-korea-to-tax-crypto-exchanges-242-percent-in-line-with-existing-tax-policy

As far as I know, it seems that taxation is only a tax on exchanges, which is the fee they earn.
But there is no news that a tax on individuals, even if it is levied on individuals, is good news too, suggesting that the Cryptocurrency market has been legalised in South Korea.

As far as I know, many South Korean bitcoin holders have held a parade to protest against the government's ban on the bitcoin exchange, which can be regarded as a government concession.

I think it is reasonable and way better than a ban.

I would accept 24 percent tax on profits rather than a ban for sure.

Hopefully china next to follow then we're back off on track again.

Seems fair enough. but this move says that the korean government are only concerned about the money that people are making out of bitcoin. They are not thinking about the technology behind bitcoin. This is also good instead of a total ban. I think they should lower it a little more.

24% seems a bit steep but in a good way its not being stopped ,  they know how much money they can get out of the crypto currency markets and rather ban it let it carry on with a hefty tax %

I think its not fair! what they are doing now is forcing the people to that so, and if thr people dont want it thry will hold their crypto unless they will give taxes ? about 20%?  its bigger than what the government appealing taxes on employees, but i guess korean will deal with it since their coins are on hold by the government.

Can't argue with you on that, that is just and fair to impose tax on profits gained.
Also it will be a good news if we look at it on the positive side, it would mean that market for crypto will be used widely as it already have.

I think imposing tax on crypto profits is fair enough.. but 24% may be a little high for starters.
I would say this is good news, it means crypto market is now accepted as legal.
But regulations need to be polished

Hold on though this is just on exchange owners profits right? in fiat

Individuals in S Korea we don;t yet know how they will be taxed do we?

Perhaps they will not be expected to pay tax unrealistically on each crypto to crypto trade?

Not sure where they are going with that yet.

Didn't hear about that news but if it's true then you will see many South Korean miners putting stop to the mining if banned.
But I don't understand what's the meaning of this tax. Since the miners will be paid anonymously by the pool then how can SK expect to get the tax paid?

It's in line with the country's current tax code, so there is no anti-cryptocurrency campaign going on. If the exchanges are operating in South Korea, then they have to follow South Korea's tax laws. Every other company does.

The 24.2 percent tax is taken from the exchanges' profits, not the trader (unless he makes obscene amounts of money to end up in that tax bracket). Part of this is inevitably going to be shouldered by their customers though, so that kind of sucks, but it's also fair. What would be unfair is if they charged higher taxes for crypto-based earnings, and they're not doing that.

I love how governments pretend to be working for the people. 

I think its still unconfirmed until their government releases this issue on the news agencies.
 

Literally better than dropping the ban hammer, at least they are still given a chance to do trades which i think will give the market another boost.


Some how its still a good news but its gonna hurt because 24.2% is quite high for a tax. Its their governments decision so i think they are planning for theirs countries future economy.

If it is indeed on the exchanges' profits, that is only reasonable and normal. Every business should expect to pay some taxes on their profits. And of course those are eventually passed onto their customers. That's just how every business operates. So actually, it's good news. Bringing them into the tax system is implicitly legalizing them. And once the gov starts making money from them, they will be much less likely to shut them down.

if  that is true i think it is still better than banning bitcoin. in my country government always say bad about bitcoin and never look it deeply. if i can choose i prefer to pay tax but bitcoin can be legally in my country

High tax rate will reduce investors interest to invest in south korea. It's actually not good for south korea. Australia also did that but the regulations was changed due to the decreasing number of fintech in industries that operate in Australia. Bitcoin is very useful for financial and technology industry so must be treated appropriately.

it hurts for korean crypto 24% tax this is a double tax than the original tax fee. This tax is only for local currency in its area. But it's a bad idea that other local exchanger may also be following a 24% tax tax evasion of a local exchanger this is my opinion only. We should notice that the local exchanger pays tax for the government not the crypto users.
Earned by Korean korean users will only be taxed at 24% tax i think based in the principal amount.
the korean crypto users no longer have to accept it rather than bitcoin banning.

Its a little bit too much i think. but if this is the only way to legalize it then they don't have a choice unless they make a move to reduce a little bit in tax cause bitcoin owner will only receive the effect its make they profit less because of that higher tax. but i think that tax isn't a final decision. lets observe and wait for the outcome.

I guess it is a bit steep but 24% of any profits taken is better than no profits is it not?

Besides that bracket is a high one perhaps no tax on profits to a certain level for individuals.

Most of the comments on cointelegraph demostrate it is bad news.... so did those people not think the ban was for real anyway?

I would have thought if the entire global mantra from govs was 24% on all fiat profits from trading crypto but it is fully legalised would be pretty good news all round and the crypto party is here in full swing...

As far as I know, taxes seem to be a tax on exchanges, which they earn.

I think it's more reasonable and better than the ban.

I would accept a 24 percent profit tax, not a ban.

Apparently, after all, a tax of 24 percent is introduced in South Korea from the owners of exchanges. For citizens, I hope it will be much less. Citizens of this country several times recently showed that they are ready to defend their rights and therefore it is unlikely that the government will establish such a draconian tax for citizens.

I don’t hear the news yet but this is a good new on South Korea people involve on crypto currency, but the tax is unfair enough or this is fair enough rather Banning all type of Crypto currency. In other side these is good news on the crypto currency because South Korea is legalizing the crypto currency.

wow, 24% tax is high, but it's better to pay high tax than to ban bitcoins. for me is this a good news. no ban from south korea is good for btc.

Good luck enforcing that.

And thank you SINGAPORE for being you.   

Is singapore zero tax on crypto? or lower tax?

I dont think thats too much. In South Korea, capital gains in the stock market is 20%. Thats only 4.2% more for capital gains made in crypocurrencies.

The good news is Korean traders will be forced to hold everything in BTC now and start trading for profits in BTC, not fiat just like a real Bitcoiner lol.

This tax is corporate tax, which is for BTC exchange, not individual, so it's a pretty good news.

Stop reading cointelegraph.  You can get more accurate bitcoin news from marvel comics.

Good new crypto exchanges in S Korea has been legalized.

24% is really hurt for many of people here, may be not for a big whale because they can be backed by their own money here. The problem here is for people that want to try their luck into crypto which they invest everything but in the end they will pay some 24% tax? This will be ridiculous, unless they can keep on getting profit, may be it is better but traders not always profit everytime. Btw is this even true for 24% tax and is it already fix?

what i understood from the past days is that Korea was not planning on banning cryptocurrencies, or trading them. they were planning on closing unregulated exchanges or regulating them. and now this is the regulation they come up with including this tax plan.

and 24% is high but this is the government they chose to accept, they have to deal with the decisions they force upon them now.

Where did you guys think they get 24 percent from? Is it based on how much a crypto user can gain?

No tax is good on any currency it's bad always bad. I also read a horrible thing that people need to disclose their real name while trading  that's so bad, this opens up legal people to catch on you anytime. This is so bad for everyone involved in the transaction, I hope the South Koreans topple this government in fresh elections, close their work and make government reconsider it.

It's good news ended. I think those banning announcement was made by some investor to shaken the market of btc to ensure profit when invest.
It's a business strategy of a business expert. 

I almost want them to ban it, so we dont have to hear about this anymore.

They have just taxed themselves into a corner. ^lol^

The ban rumours was just a warning shot over the head of Crypto currency users to force them to accept their high taxes and their strict regulations. Just another corrupt government forcing their will onto their citizens. They are saying, If we cannot stop you, then we will make Bitcoin unappealing to invest in. <introducing high taxes>

The same was tried with the introduction of the BitLicense in New York. <They just overregulated it to form a barrier to entry>

Good news. Maybe it will help the market to move up. I'm so looking forward to when the growth begins. So, it's time for crypto market to capture new ATHs.

Great news that the government will no longer banned bitcoins in South Korea but it's really unfair for them to pay for the high taxes implemented seems like the government is holding the South koreans on the neck right now. I'm just wondering how will the government will going to regulate this one and maybe some South koreans will think to transfer to other neighboring countries with no crypto tax being regulated. Just a thought.

Zero for individuals.   Zero for businesses not registered in Singapore.   But the real plus is virtually no currency controls.   You can take as much money into SG or out of SG as you want.   The only * is that for cash, you need to declare over 20k SGD, but that is a non issue with crypto as crypto doesn't pass through customs anywhere.   

LOL that's robbery, 24.2% that' very big amount if my transaction more that 1 M, that's makes people affraid to do big transaction using bitcoin. but in my opinion this is little good news than banned.  I acknowledge that taxes are the ones that have hampered bitcoin development because the government can not levy taxes from bitcoin users so they have to ban bitcoins. but look at it now when they can apply a tax issue to ban bitcoin disappear. but the tax is very large and it is disappointing if it is followed by other countries.

Yes, it's better than ban!
This news give impact to rise price again.
Keep on roll bitcoin :)
Thanks!

i think this is better way than to ban altcoins in this country :) n this way we can have another way of having transactions regardng to our altcoins to korea.

Thats a hell of a percentage for just tax,imaging a businessman making millions or hundred thousand a day or week,imagine how much he would pay in total in each transaction he will be making.Its pretty damn big to be approved and to be requested

hmmm nice. Wondering how to move to SG right now :)

This is true. Cointelegraph is a prostitute posing as a cryptocurrency news website because their services are always for sale lol. Its where all of the scammers go if they want more publicity for their latest scams.

Speaking of scams, check the Bitcoin Ore team, yes Ore, in their website.

http://www.bitcoinore.org/#team

Are those people real? The founder on the left's picture is photoshopped to make his eyes look bigger lol.

Is 24.2 percent the normal tax rate in South Korea? If so, nothing special and people shall be ok with it...

There are news circulating around the net that South Korea's government will be collecting a 22 percent corporate tax and a 2.2 percent local income tax from the country's cryptocurrency exchanges.

Yes, agree with you that it is better than ban.

Hint:  you don't need to live in Singapore to enjoy its benefit.   It's like you didn't need to live in Switzerland or Monaco to enjoy its benefits in the past (and still a good deal in the present).    Just fly over, open some bank accounts (moderately easy: as long as you aren't from a third world country, just need a proof of address from your home bank; funds to deposit; and ID), open a few crypto exchange accounts (easy; however some require a local cell phone number... which is pretty easy to set up, you just need to remember to maintain it with local bill pay from your bank account).     That's it, your funds now 'exist' in a place with no income tax on interest income.   

Governments taxation of crypto currency was going to happen at some point as soon as they seen they were losing out on a huge amount of revenue they had to be thinking they needed a slice of that. I think we will see more taxation and probably regulation of some form in the future too.

Well, Australia where bitcoin is legalized also butted dubble high tax on crypto profit in the beginning, but from the last year after citizens' petitions they put regular tax which is spreaded for all income, 17% as I remember. I think this situation is going to be repeated in South Korea as well.

I guess neither. Not a single crypto investor will be interested in investing if they are being taxed this much. Obviously they are still able to trade if they really wanted to and it's not illegal, and trading p2p probably won't get taxed anyways since it's just a fair swap without involving any companies and the government has no way of knowing that a bitcoin exchange has happened. So if you really wanted to rate this news, i guess it's better than banning altogether.

With this new progression, i think we'll see some crypto volume go from Korea back to Japan, where it is already one of the Asia's biggest bitcoin hubs. With the South Korean government not supporting bitcoin, Japan, who legalized bitcoin last year, is going to be the safe haven for investors.

These high tax percentages are basically discouraging big investors from investing. South Korea just didn't want to ban it altogether, but rather be able to collect some revenue.

This is terrible news. If so, you have to give kolosalnye taxes to 24.2% this quarter from each transaction. If this is the income tax it too hard. Many will move to the use of exchanges in other countries.

Every country will put taxes on capital gains made by the traders and it would definitely hurt the profit of traders who do so many things to make small profits.
Still, I say it's a good move from a tech country like South Korea.

The media reports that up to 24.2 percent taxes will be collected this year from crypto exchanges, the regulators say that the tax rates have not been decided.

First of all, it is good news to legalize cryptocurrencies, because it shows that bitcoin is gradually accepted by people and that tax rates are reasonable. After all, the amount of money involved in bitcoin is quite large.

I think that this is really some good news.
A tax paying company should be welcome in every country of the world. A company that pays takes shows it is taking social responsibility serious and is not running away (like many of the really big corporations do).
And 24 percent is somewhere in the middle from what I know. There are countries with higher taxes and ones with lower taxes.

This report hasn't been officially confirmed yet. If the South Korean government applies this new taxation rates to cryptocurrency exchanges then they would have to pay 24.2 percent of corporate and local income taxes, don't see why this new tax policy would have any significant impact on individual traders.


http://english.yonhapnews.co.kr/news/2018/01/22/0200000000AEN20180122002200320.html

https://en.wikipedia.org/wiki/List_of_countries_by_tax_rates

In my opinion, the amount of tax is too much. But It's not a bad news. It means that Korea government have accepted cryptocurrencies. Other governments will accept cryptocurrencies too. We are entering a new era.

Exchanges are company and must pay taxes. But users won't pay tax. It's very good.

Lol this is a good idea because I don't want to leave my country and migrate just for crypto currencies even if it's one of the most corrupt place in the world. ;D But I'm still hoping that crypto currencies will be widely appreciated and legalized by governments in different parts of the world even if they put some taxes for using it and make policies/rules and regulations it will be good for everyone. :)

That is a good sign for exchanges but exchange owners increase their fee percentage transaction, those transactions should be paid by the people who are trading in those exchange but it is a good sign for acceptance but it also will affect the people who are trading in those exchanges.

I just read that the Philippines also studying the Bitcoin and I think they will also put a tax on it, I sure hope this kind of thing will not happen for us to earn more, but even though they put a tax on bitcoin, it's alright i think as long as it's not banning it.

South Korea IS NOT BANNING bitcoin. They only said they didn't want anyone trading cryptocurrency with anonymous accounts period.

There is news that in South Korea it will be mandatory to create a personal couple in a bank for traders with the provision of personal data. There will be an anonymous trade ban!

At least better than totally ban it.....

Yet again it's a centralized economics. Bitcoin is built to be a 'decentralized' but government taking it away. I believe some traders in Korean will not agree with it. Well, the possible solution is to move to the country that less strict with Bitcoin. But in the end its good they not banning it because I'm sure it will be disastrous if Korea government keep banning Bitcoin, just look at when the Korean government announce a ban the Bitcoin price taking a big dip.

I think this is not totally a good news for the Koreans because I'm pretty sure that no one wants their income get reduced by any kind of deductions (even I will not agree into this if that is going to be  implemented here in the Philippines). But honestly,if this policy will avoid the banning of crypto in their country then this still said to be a great news for them, at least they still got a chance to make profits from it.

It would be only natural NOT to ban bitcoin but rather try to get most out of it (read: tax it accordingly). I am always surprised with that news surfacing that this and that government bans bitcoin. Why do they ban it? - I ask myself, when it makes so much more sense to tax it.

hmmm it all comes down to governments getting there protection money (oops i mean taxes ) at the end of the day  ;D

There is no ban!
just wait tommorow 25-01 , you wil see there wil come a hard rise with 10% krw .

I am sure tommorow 25-01 is a big day, and recovery in btc.

BE there!

If you would have read news a little bit more clear, it is written that they want to take taxes from country’s cryptocurrency exchanges. So if you trade somewhere else you do not need to worry about it :)

Bitcoin was designed for trading btc for items, it was designed as an alternative to fiat but now the majority of it's users do not even know how to use crypto currencies. In my opinion every country should take a solid 80% tax. That way all the fiat assholes would drive away from bitcoin, the price would go back to maybe 120$ and it would again become the beloved crypto currency it once was.

I think it is too big tax to be real in fact - people will organize new petition for this tax. Probably this problem will be resolved and tax will be decreased

Yes, that is true and i like it that way.

the government made a smart move.

this is because if he had decided to ban it, people will still hide behind VPN to invest in cryptos and he will get nothing.

so its better to regulate it to get your share from it.

Its way too big, its like robbing the users, but somehow I agree that putting a tax is better than banning it, at least the wealthy people will still invest in bitcoin and that could impact the price, and new petition is not always going to work, I doubt the government will response to any petition regarding to bitcoin

Depends though is it a flat 24% tax and be done with it kinda deal or are there other terms and conditions involved in the whole thing

This move will kinda kill all the arbitrage opportunities though where people outside korea would buy from other exchanges and sell in korea

I do think it's good news. It is better than banning it, and by imposing tax on profits made on cryptocurrency - the country is accepting cryptocurrency. But 24 per cent tax, is far too high.

The UK and EU are also looking to regulate Bitcoin and other cryptocurrencies to fight anti-money laundering and tax evasion. I believe that we will see that in the next month or two. And I expect to see more of the same in many other countries.  https://www.theguardian.com/technology/2017/dec/04/bitcoin-uk-eu-plan-cryptocurrency-price-traders-anonymity

It is certainly well that is not banned entirely, but I sincerely do not understand how they are going to track it. It is too costly in time and resources.

The percentage is too high. 2-3 years pass and people will stop doing in the crypt so many x's. And because of the high taxes it will be available only to larger players.

The stronger going to control the crypt the stronger the opposition from the community. Leave many cryptocurrency providing anonymity of payments. Now this is a very big trend.

Sounds good news whe the south korea announcement that the korean is will not banned bitcoin and cryptocoin, it will be good news for the all off bitcoiner in the world and excatly for the bitcoiner from korea. Just few day bitcoin price will be up and pump again, nothing stop the bitcoin price and the korea have annoucement that bitcoin will be allow for transaction in south korea. Just waiting for good news in another country.

Well, it's both good and bad since the tax doesn't take into account the transaction fees needed to transfer coins in a timely manner... It will be painful for those making payments...

the South Korean government will take reprisals against anonymous trading bills and penalize market manipulations, money laundering and fraud. But the government will also support and even fund the development of blockchain technology.

Of course it is good news bro and if every government in the world would regulate bitcoin or other crypto currencies the price of this digital assets will somehow be more stable. I know there are still ups and downs even if it's regulate but it's a one step closer to the world acceptance of this digital currencies just what I have said before in this thread. And thanks for the link I'll read it later after finishing some tasks. ;D

Seems fair to me. Better than banning the cryptocurrency totally. Besides, the government will never approve anything without them getting benefits right? It's the government for God's sake. Of course they want something in return to give it full permit of operation. It is unrealistic if it will be taxless. Rules make the world circulating.

South Korean not banning bitcoin is good news, bad news is that the tax is too high.  Considering the 24.2% tax plus the transaction fee, it may discourage South Koreans to invest in bitcoin.

South Korea might have implemented something similar to US IRS in 2014. They taxed not only cashing, but also trading cryptocurrency to cryptocurrency and purchasing goods and even some of the wallet-to-wallet transfers may be taxed. Certainly, one can avoid paying taxes at his own risk and peril, because it's illegal. The thing is, cryptocurrency transactions are not that anonymous and can be tracked if needed. Take a read on this interesting article https://www.buybitcoinworldwide.com/anonymity/

So essentially this doesn’t affect individual traders and is more for people who might own an exchange or run a crypto based business

I think this is good news, because then the investors in south korea can reinvest their money with bitcoin
But now the South Korean government itself, issuing taxpayers to every bitcoin user
But not with existing investment licenses, it can also increase state revenues, with the taxes required from bitcoin.
but I think a 24.2% tax will weigh on investors
This is good news, so is bad news