Bitcoin Forum

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

Despite all the FUD from Korea lately, it seems like the government is actually taking a fairly positive stance towards crypto now. I think an official tax system for cryptocurrencies legitimizes the industry. Looks like Korea might be going towards what Japan has done in terms of policies regarding crypto, even though in the beginning it looked like they were going in the same direction of China (creating FUD, making things illegal).

Everything is still in the initial stages, so I'm really interested in seeing what happens in the future. What do you guys think?

Fine if they want to take back some control over cashing to fiat, but 24% is way too much in my opinion.

Yes, a tax is a better alternative than a ban. In future, when trading from wallets
and atomic swaps are there, controlling cryptos via exchanges will be very hard to do.

It's in line with the existing tax policy, so I think it's hard to disagree with.

If undertaxed, people will see it as a sign that the government is very lax about it. If overtaxed, people will think the government is too strict, etc.

Crypto is in its literal infant stages in Korea, so I can see why the govt would want to do this in the beginning, and the lower or raise the tax rates according to public response.

it makes btc pump after 30 january. btc can be again 15000 dollars in early february.

When will people learn? Did they realize the "FUD" for the past two months was all complete garbage? Every time the news said something, the Korean government came out and said otherwise, they constantly said for months what they were going to do, so this latest news is not new, it's simply something that again reaffirms what the government anyway had been wanting to do and kept saying.

Now here's the other strange thing: if this is really new news, why hasn't the price rebounded? All was blamed on Korean FUD, wasn't it?

The target for all countries is tax. Exchanges need to reduce their profit rates and meet investors with 50%.

And what is there to think about, it's time to forget about anonymity, now we need to think what will be the tax when exchanging for fiat and what it will eventually result in for us. To say, managing our state by our actions will now be easier and they will also have a profit from this.

24% is a big TAX. crypto is decentralized and no one owns its. The government didn't spend anything for this technology and yet they want a very big part of the income. this is very insane. This is the real government, they're like vampires. bloodsuckers.

Imagine that we are paying a 30% tax in France  >:( >:( >:( >:(. It hurts so much !

I must actually commend the south Korea government and there tax agency for being fair in this as I know from beginning that people were just over pump the issues over there in other to create panic selling. I have said this several times that government need to understand crypto currencies aim and objectives in other to take advantage of it as we can see that Japan gdp has rise significantly because of legalizing of bitcoin and others altcoins!

I agree. I'm generally not a big fan governments, but I think the Korean government took the right step in this case.

In the beginning, I really thought Korea was going towards what the Chinese were doing. I watch quite a bit of Korean news, and FUD was being spread around constantly. There were a lot of reports of people selling cars and houses to buy crypto, only to lose their money in the recent dip. Obviously the fault of the investors, but news media were treating it as if cryptocurrencies were at fault, and not the investors.

Things started changing I think about a month ago when factions of the government started disagreeing on what to do with crypto, with some saying it should be banned all together. Cooler heads prevailed though, and now I think it's headed somewhat in the right direction. Hopefully the same thing that happened in japan in regards to crypto can happen in Korea

Every country has the right to tax their citizens on their income, both domestic and abroad... Anyway, I'm not totally against this approach. It makes crypto gains less obscure and hopefully will attract more people investing in crypto.

Btw here in Belgium a judge ruled crypto gains are speculation and should be taxed at 33%...

malaysian taxman also start blocking exchanger bank account and asking exchanger to handover customer record for taxation purpose, feels like not appropriate for any government to impose such tax regime as its does not involved any government process at all, they do not take responsibility to regulate or protect it in any way at all, and they also do not provide clear process for participant to be recognize as  investor of some sort, this is free market built by people, without involvement of government at all, why they come and ask for money

It's market manipulation. The price should bounce back this evening after futures contracts come in.

It sucks, but it seems like a dirty trick has been played.

If that rates number is true, it is too much. I mean not many people make millions out of crypto, cutting 1/4 of it for government is lame idea, I would rather try to avoid it than pay for it.

I glad that all these FUD is clearing out, but I think if they stand on that huge tax on crypto trading which to me 24% is quite high, I can see the volume moving down to another country, the way Korea benefited from China FUD

They made FUD and mostly those FUDs come from US cuz there is future options on btc. investors are taking short position on btc. So they wanted to make some FUD than weekhands has sold their btc and now btc is 11k but how long can they do that ? You see many new coins/tokens coming up and there are many new investors. People join an Ico with thounds and rarely with millions dolar. Do you think they are fool ? no , they believe blockchain technology. everyone knows blockchain is future unless beter technology is come to true.

I dont think tax is bad option for cryptos but its not easy to regulate cuz many alts are coming up with decentralized so if there an ICO in Vietnam and i m join this ICO from Denmark and i did some profit with my invest so which country will ask for tax ?  
or there is a decentralized exchange (coss,cob,dex ) and i m trading on this exchange and i did good profit let say x5 . as you know you dont need kyc for decentralized exchanges. so who will come to me and ask for tax ?

Cryptocurrencies have to be regulate and than tax will come but how ? no one know real answer i think. we must be prepared for many FUD but we must believe in the end of day we will be winner.

In the beginning of all this mess the south korean government stated they
were NOT going to ban crypto, but that was REPORTED INCORRECTLY which
led the panic selling and to where we are today.

Taxing crypto is a funny one really, on one hand it legitimizes the industry
but on the other is introduces a degree of regulation. is that a good thing?
I know a lot of people will not like either taxation and regulation.

Did anyone against this read the story?  They are going to apply normal Korean corporation tax to Korean exchange.  Dont use a Korean exchange?  Doesn't affect you.  If you do, it might mean the exchange rises is fees a little to cover the tax thats on its profits NOT trading, though with competition may not do so.

BTW 24% corporation tax isnt even high, dont know where you posters are from but average in Europe is ~26%, Asia is ~27% and in North America 37%, Global its 29%.

A tax system is definitely better than a total ban.

I'm ok with that tax. It would be nice to lover it in future, but it's all good.
Legal matter is now one of the most important things in crypto.

I don't think it's too much. Yes, it's high as percentage along, but every business is paying even more taxes on profit in almost all developed countries.

As bad is it, taxing is giving legitimacy over crypto industry.

Most other Governments will certainly be looking at taxing Crypto - it's inevitable and does give more legitimacy to the markets.  In the UK hopefully it will stay as capital gains tax - 20%.  We're bound to see more legislation of course - how you deal with ICO's etc etc...

My overall impression with what is happening now is that the big banks are doing their best to somehow "control" the policies the governments implement against cryptocurrencies, through the Central Banks. They are afraid of what cryptocurrency can do against them. Maybe I am wrong also.

they cannot fight crypto, though they will try as some are doing. Japan and South Korea is another example

To be honest, I think this is a necessary evil. If we want to see Crypto rise up and fulfil its mass-adoption potential, then we need the powers that be to at least THINK they have some control over it. In the end it's bigger than them... but let them have their little slice of the pie in the meantime as it gathers momentum.

yes, the crypto rate may suffer now that some resist, and later it will go up. They will retain taxes for themselves

To be frank! instead of banning governments has taken some decision about the cryptocurrency. I think they are charging nearly 24% on bank transaction, so it will be placed for people who are trading in those exchanges, may be charged will be high and it is going to be collected from peoples trading.

Taxing on exchanges is rip off for normal investors because the taxed amount will be charged on the users deposit or withdrawal fees. Finally it would be for users to lose in these type of situations. Large investors likely won't get affected by this but shall fishes might suffer.
Anyway it is times better than banning cryptocurrencies completely like what they did in China.

If It's in line with the existing tax policy, then I think the current tax is too high.

20 percent  for crypto isn't much though !! turkish government gets 100 percent  tax of every car being sold :))

Absolutely right. People would agree more to that even if we don't want to be taxed but these regulations help clear the skepticism of what will happen next. Ban rumours will always come up but when regulations get implemented, it stop that rumours.

24.2 percent tax is really high, but the best is it didn't got banned on the country, many investor will be affected if that happen. In my country bank are banning all the account related to cryptocurrency because cryptocurrency is not supported on the laws .

Does it mean the price of the car is doubled as the cost?

Exactly , if the price is 50k we buy with taxes 110k :) unfortunately this situation  is not a joke.