Bitcoin Forum

South Korea’s government has reportedly imposed a tax on the domestic Cryptocurrency (https://rothscoin.io/) exchanges.

To be specific, they will be subject to a 24.2% tax (22% coporate and 2.2% local income taxes). According to Yonhap News Agency, the government is also requiring exchanges to share the transaction data with banks.

Tom Lee, a strategy analyst, reckoned there would be a dramatic drop in Bitcoin price down to $8,000-9,000, followed by a sharp increase to above $20,000 (https://rothscoin.io/) by the end of 2018.

This year is anticipated to be a rough, yet successful year to wise investors in this market.   

RothscoinTeam (https://rothscoin.io/).

this could lead to two endings, either the exchanges in south korea start to die out, or they simply pay 24.2% of their incomes as tax, which is not much actually.

It will be 2018 years bitcoin eruption year, get on the ground from the ground, get more recognition, so we should hold more bitcoin, perhaps this is our next millionaire is us. South Korea has already begun to tax on bitcoin, so other countries may do the same, with fluctuations in the short-term market, but the price of bitcoin will surely rise in the long run.

Actually, that tax rates in S Korea is normal. The S. Korea is known to be the highest taxing government, the 24.2% Income tax is nothing if you are earning a lot from Cryptocurrency.

How do think this is gonna impact the fees on these exchanges? Are we gonna see trading becoming more expensive? Somebody has to pay for the taxes and I doubt it will be the exchanges.

Taxation by government is great news for the crypto industry. When the government recognizes that crypto trading should be taxed, they are also recognizing crypto as a legitimate asset and that they need to tax it.

U would never see a government taxing drug smuggling even though it is profitable. Cos everyone including government views drug smuggling as illegal hence they can't tax it despite knowing the huge market for it.

But the moment governments are taxing BTC and crypto trading, they are recognizing crypto as a real asset and a legal asset. They view the crypto trading as a real business activity and hence the need to tax it.

With crypto viewed as legal, the whole crypto marker capitalization will boom !

This is good news for cryptocurrencies, indicating that the government officially acknowledged that cryptocurrency is an asset and does not need to worry about whether Bitcoin is illegal or not. Despite the increase in transaction costs, at least bitcoin has begun to reach into the larger world.

Probably it's a good thing. South Korea government understand that entirely banning crypto exchanges wouldn't be wise idea. 24% tax I think nothing for exchanges.

The "Man" will only let you do it once he figures out a way to get his cut.

 For me this is a wise decision of  south korean government to employ a 24.2% tax  to all corporate and local income tax and declare to  some exchanges share a transparent transaction data with banks,they do this command to prevent money laundering and using the cryptocurrency in illegall transaction.this decision of korean government is better than  totally banning of all digital currency in there country,because many korean investor would be affected if this kind of law will be implemented.

To those complaining about the 24.2% tax, I say this is a lot better than banning cryptocurrencies. The government finally permitted cryptos in its country and have recognized it, not as a bank threat, but an asset. It could somehow help their economy since we are in the century where digital money is a trend.

the problem starts when they start to investigate where the people with those cryptoreturns are cause then no one will like to use those korean exchanges,

but i doubt states will be able to survive with their difficult taxation system the new digital and cryptoeconomic age.

but seriously folks i am questioning myself, since quite a while, how long are you going to evaluate cryptocurrencies in US dollar, i mean what are you going to do when the US dollar evaluation is gone?

regards

it can help and damage their economy, the endeffect remains to see.

Hmm I don't understand this.  I guess they are only taxing crypto that is being changed back into the won or fiat currencies right?

I mean how do you tax bitcoin or any altcoin?  So if you never convert your coins into any fiat currencies you would still never need to pay tax.

When a government will not eventually ban cryptocurrency, everything will boil down to taxation. Maybe the government has this feeling that since cryptocurrency is something it could not totally control and understand, it might as well use it to gain more revenues from without ever thinking that it is their own people who are really into cryptocurrency. Anyway, we are all hoping that in return for paying the tax levied against every transaction the government will give some leeway and let the market do its own thing (as long as things are done legally and no hocus-pocus). Alas, in life, we could not go away with tax and death -- and cryptocurrency is no exemption.

paying this percent as tax is better than banning it entirely, I think is a good decision to the south korea government.

You guys still don't GET IT.  They can't tax cryptocurrencies because it is legally NOT a currency.  It is a commodity.

Until they all actually aknowledge and make it an adopted currency they can't tax any of it UNLESS you change it back into Fiat currency or (money that the known world knows).

The day that crypos are accepted as REAL CURRENCY is the day it will never die.

they can legalise cryptocurrencies actually.... they can develop new taxation models

the question is how the population that provides goods and services for those cryptocurrencies will think.

and weather they will be willing to defend themselves. or otherwise cryptocapitalists might become a huge burden on the economy, if they only drain the economy and dont develop and upkeep value sources.  ::)

regards

This is a sad news to most of the korean citizens but this is a great new for all of us because regulation is better than a total ban.Cryptocurrency isnt intended to be like this but for the greater good we should follow what our government wants,its better to take medicine than to undergo a surgery that is the logic behind it.

For short term South Korean move cause some problem but it’s really healthy for long term move .If country start accepts tax on crypto exchanges then it will be regularised. So next couple of day I will prepare in mind not to sell grab as much as I can.

But maybe you didn't find a problem.
Exchange tax (rather than for individual users), for the exchange fees of profits each year is in is too high, so the tax is should, but a tax on individual users, may not be a good decision.

If every transaction you made in trading would have additional 24.2 deduction for tax I think its to much expensive and a huge inflows income to the korean government. What if every cash out you made would have a 24.2% additional deduction for taxes I think it is quiet reasonable than imposing 24.2 every trading transaction you made your killing the crypto trader for that rulings :(

I guess,that the situation with taxes in the South Korea is better than just banning Cryptocurrency

Imposing that 24 percent on every trading transaction would kill the trading for many. Unless you're a whale who doesn't need to care.

If you look at the bigger picture, most of the collected tax is hopefully going back into the economy. Imagine a larger treasury because of crypto trading leading to less taxation elsewhere. Which is good for local investors, not so much for foreign ones.

I think 24 percent is for corporate tax which is govern by corporation big partnership and i totally agree with this but for local income tax 2.2% is quite good.

They will come around. Big projects like IoT Chain (ITC) are expanding into Korea. They partnered with a huge crypto firm Hashed to make it happen. Very underrated coin to be watching. https://coinmarketcap.com/currencies/iot-chain/

24% tax is very large especially if you do not earn much money in crypto currency. So it should be fair to every person. I'm sure that many countries will do what South Korea did. And hopefully here in our country it will happen so that we will be able to withdraw our money without fear of being caught by the police

the introduction and legislative regulation says only one thing that the state not only wants to make money of you , but also sees prospects in the crypto world

I'm agree. I think that this is  the good news. This means that States are aware of the need to transition to the blockchain economy. Gradually, many countries will understand this and cryptocurrencies will begin to grow strongly again.

That means if they do not have any interest to ban crypto but just try to take a prospect about the future of crypto. If crypto becomes big and then, They can make a lot of advantage from there. But as far as i know, they are still never giving any clarification about that. That seems a bit interesting to me.
So, I can't decide if that was true.

These are all manipulations from the East so they want to put the BTZ price down and buy it more than to market the market and create such news.

24.2% - it is almost a quarter of potential profit. I`m waiting for era of decentralized exchanges. Nobody is needed in centralized exchanges with government control.

I think taxationis really neccessary dor Bitcoin to be considered legal in any country, all investment and businesses does that after all, I think this is a positive outcome for both party especially bitcoin, we can now expect a good relationship between the government resulting in positive price outcome for Bitcoin. Finally we can move on with government scrutiny.

This news may help boost bitcoin prices in 2018. Taxation means the recognition of bitcoin exchange is lawful.

So they will need to pay an income tax like every other business and this is the end of the world?? They are taking fees on every trade, why shouldn't they pay taxes over their income?

I find it reasonable and normal. There are many countries with higher income tax.

At first look 24.2% is a pretty big tax, but if we take into consideration the daily/monthly volume it would be clear enough that this rate is pretty good. I'm sure that this step could play the major role in worldwide crypto development.

I even think that this is good news for the entire crypto currency market. This will increase people's confidence in the crypto currency, and therefore can give a boost to the price increase.

Are there any negative effects on bitcoin? I actually saw this one coming that government agencies from different countries may tax bitcoin because they can't stop it so regulating it is the best way to do. I hope they don't tax too much so we can still earn a decent money from cryptocurrencies.

It is good that South Korean goverment decide to tax echxanges and not to ban Crypto, but i wonder how they are going to collect taxes, in which currency in BTC/Altcoins? :)

Good or bad remains a perspective here. From what i can understand, people are not going to accept this without protest, and governments and policy makers too need public support for any such implementation.

I'm wondering why, in the opinion of the Tom Lee Bitcoin, after a completely predicted recession, should rise to 20k ? Maybe because he put it into BTC lots of money? I do not think that after a large dump, Bitcoin can pump even up to 10 thousands)

Yeah, I don't trust this analysis or speculation at all.
This is crypto, it's decentralized and open source.
If I didn't want to pay those taxes there are SO many other places to trade.

And to say that because of this tax that btc will only reach 20k by 2018 seems incredibly misinformed.
The Korean market consists of less than 20% of the global market.
Taxes being imposed affect the exchange itself more than the trader. (even then, the trade is only paying 2.2%)
This also doesn't take into account macro economics and trade history.

So yeah, btc at 20k at the end of december?
Pshaw, it will be 20k by April, 60K by december.

I am sure that the fee will increase, due to the fact that popularity of these exchangers will decline, it is possible that companies will go to such losses in order not to lose customers.

This is definitely the year of the altcoins, I'm sure of it. Bitcoin from the New year began to slowly but confidently lose in capitalization, and after the recent introduction of a tax on exchangers by the Korean government, it will completely fall

I think over time , many countries will come to the taxation of the crypto market, as I would not like but it will be . But I hope we still have time to earn

Of course, the government of any country sees that in the world of cryptocurrencies large amounts of money turn around. Of course they want to cut off a piece of a tasty pie. They come up with rabid taxes. In my opinion, this is not entirely fair. If taxes were not high, then many were happy to declare their income from the crypto currency. But, when it comes to 55%. Then sorry - this is a real robbery.

i think we all pay taxes on other tradings too , and on profit on selling assets / i.e capital gain tax .

so why govt will spare this market , they will charge tax and nothing wrong .

Maybe almost you guys think this will affect to cryptocurrency in bad way but IMO I think it's a good signal for the future of cryptocurrency. When the government is going to control the cryptocurrency that mean they're going to legalize cryptocurrency as a local currency in their country and of course we will have to pay taxes for cryptocurrency income although our income will be decreased but we will be able to use cryptocurrency to pay for everything we want to in this country :)

so fianlly south korea really understood the need of this technology good news regulating bitcoin and altcoin is positive initiation after all hope to here more positive news soon.

Taxing is not bad at all. Taxing means that they recognize exchanges as legitimate business. This is the first step of regulating in a good way.  

The collection of taxes from stock exchanges and exchangers in South Korea is basically good news. It means that at last the government has recognized the circulation of the crypto currency legal in this country and it's time for a quiet work in the crypto currency market. Taxation in any case was necessary, and 24 percent is not such a big percentage to panic and believe that because of this bitcoin will fall in price, or sales will decline. The income from the purchase and sale of crypto currency on exchanges and exchangers is very large, so it is more profitable to pay even a quarter of the profits as taxes and calmly trade further than having permanent problems due to the unanticipated and unstable market-based crypto-currency relations.

For me the whole event is just a drama so that the government of South Korea could impose tax fairly to the crypto currencies in which obviously they could not stop it so they create an scenario in which they would try to Ban the crypto currencies but the truth is everything is just a drama so that the South Korean people will not protest against the tax and to consider it good than banning it.

This is really a step forward for the development of crypto currencies. The introduction of tax in South Korea will only benefit all crypto currencies. I hope this will make the price of bitcoin more stable, at least news about a possible ban on crypto currencies in South Korea will no longer affect the market.

I guess sooner or later it will be available in all countries .And this is a good sign, so this market is recognized by world powers , this is the future

I'm not just south korea, but chances are all countries will be taxing in cryptocurency :)

I think that this year will be successful for experienced investors, and newbies will lose large sums due to the fact that all the processes market are very accelerated

I think its good, that govt asking people to pay tax, whatever you make profit. Means govt accepting crypto currency and more and more govt will adopt it. I hope china come back and do same thing, it will be huge for in this industry.

I think here such type of tax system will make people force to down the work of bitcoin Because this is not that better rule of taxation . Tax of 24%+ is really a big amount because here the workers in cryptourrency how can they pay if they will make very small amount of earnings and will pay more than that what they will make .
In actual my view toward this taxation system is saying clearly that they will not fully make people free to use bitcoin and at another side their rules will make people to leave bitcoin ,in this way bitcoin popularity will go down more than what people were using without more restricted rule of tax .
And also at another side if anyone will exit through this work then during withdrawal of all of his money he will needed to pay 24% tax no matter he is in profit or loss .

Yes it is good for long term run because government imposing tax means it’s considering crypto currency as a legal assets . So people start to believe more on crypto as they paying tax no need to worry about ban and other things. Yes for short term it’s bit difficult long term it is great move.

ho! this one was happened in south korea 24% of tax means it is difficult they need more time to get profit in cryptoworld. i think due to this happen the bitcoin price was increased more than 20k $ also they are not satisfied with this profit.

I don't know more that South Korea introduces new tax on cryptocurrency exchanges. Please tell someone.

This is a good news for South Korean peoples and now they are free to do crypto trading with 24.2% tax slab.
By the example of this, other countries should also make tax slab on crypto trading and make crypto trading legal. From this thing, people can trade crypto freely and government will also earn tax in huge amount.
I wish our government will also do the same think and make it legal.

In South Korea, taxes on the use of crypto currency are only being planned. Hearings in the national taxation department were carried out in the middle of October. The tax service said that business using crypto currency is taxed, there are discussions about the possibility of taking taxes for capital gains.

Take part in the bounty. If anyone does not already know, in simple words, Bounty is a certain percentage of tokens that start-ups (ICO) are willing to pay to ordinary people for spreading information about their project to attract more attention and, accordingly, more investments. And funds for this stand out, believe me, very much. That's what we can use to earn tokens (coins) for subsequent sale on the exchange. And get your percentage with the right approach is very simple and for this you do not need to have special skills.

The exchange in South Korea exactly after such a tax will die, this and commission will also grow. Thus, all the profits received will be reduced by a third, whether it is profitable to make an exchange then or better leave it in your wallet and then exchange it through trusted people to their wallet and receive money in their hands.

I don't think it's bad news, but a tax on the whole market would at least mean that it's legal to trade bitcoin, right? Other countries are also planning to levy a tax on encrypted money markets, a trend in the future.

probably because of such regulation, the level of security will grow, but otherwise there is no sense in regulating it, only losses (

South Korea declares that the fintech company will probably register its company into Financial Supervisory Service or FSS legally. This action will eventually lead to the provision of money transfer services internationally in small funds. Once registered the profits of the Fintech company are able to use various methods to send money abroad including using virtual money which is none other than bitcoin.
but There are several conditions that must be met by the Fintech company. The requirements in question include having to have paid up capital of more than 2 billion won. The company's debt-to-equity ratio should be below 200 percent. In addition to positively impacting consumers unfortunately this law also raises competitors for today's banks that first serve money transfer transactions. If using the Fintech company in remittance, the time required is much shorter than through banks. In addition, usually commissions taken by the bank to send money is more expensive than using a fintech company.
this is good news and hopefully followed by other countries.

It is interesting that SouthKorean officials so confident that they can monitor the incomes in cryptocurrencies. Otherwise the experience of South Korea would be useful for other countries and their governments.

I think it is the result of hitting big time in crypto. There are also many investors and traders in Korea that's why their government implemented this new tax rule. Korea is into crypto right now. Just wondering what will gonna happen after 2-3 years. Does Korea will still take their part in investing to crypto?

The government employee of South Korea, who took part in the initiative to regulate trade in cryptocurrencies, was found dead at home on Sunday. Local media reported that the cause of death of 52-year-old Jung Ki-Joon was a heart attack.  :o

yes it is really better way  to use tax on on cryptocurrency exchanges than banning all cryptobusiness. to my mind China and another countries will  do the same

The move is a good one from south Korea if tax is changed on crypto it will be regularized and this will be win win for both govt and the traders.

This is definitely better than banning crypto currency. A completely different question is the size of the tax, is it sensible to make such a large tax on such a young branch of the economy? It would be reasonable to make a small tax, which will come into effect in a few years.

I do not understand what the relationship between korea market is taxed with bitcoin prices that will rise to 20k $ at the end of this year.

I also tried to trace this connection between the growth of the bitcoin price and the taxation in South Korea, but I did not find a direct link. I see only such an indirect connection. The taxation in South Korea indicates that the government of the country recognizes the legitimacy of the crypto currency. Other countries can follow the example of South Korea. This will mean that the whole world recognizes crypto currency. This should give impetus to the development of crypto currencies.  ::)

Is it true?
then what is the name of the new exchange and what about the fee in the withdrawal transaction or altcoin income whether large or small? it looks like I really want to try the exchange.

This is actually good news for cryptocurrencies cause instead of banning exchanges the government has actually legalized the operations of exchanges by imposing taxes on them.

I think this is good news. Because taxes better than forbidden

Wow, in my country, they don't have strict rules for this, luckily! I mean we cannot trade or make money online if the government banned it

This was one of the reason why the price drops hugely early this year,this korean and Chinese news,that made exaggerated by the news agency.they sucks the market and until now we're suffering because of that,besides this news only defies some policy towards crypto but not totally banning

Paying taxes means that South Korea acknowledges that digital currency transactions such as bitcoin are legal. Great news! And this tax is already low relative to some countries, right?

Block chain new technology is born, the first wave is very normal!

this is good news south of Korea already impose taxes or legalize bitcoin in the country, hopefully in other countries also follow. so that bitcoin price can reach its highest point.

Will,maybe this is the result why the government of korea not impulse totally band of all cryptocurrency in there country,they make a treaty to,all the exchange traders in there country to implemement a tax of 24.2% from corporate and to the local income tax,so that this will become usefull to the rehabilate to there community.They impulse these law to prevent some exchanger to used this cryptocoin in the money laundering.

This is really good news, I also see only positive in this news. This really means full legalization of the crypto currency in South Korea. But some news agencies can present this news as negative, so we need to carefully analyze every news.  ;)

Then they unban ICO too? ??? ??? ???

If bitcoin had been regulated in all over the world. Then bitcoin will become legal phenomenon,so the price of bitcoin will increase like climbing the mountain in a hour.So the price of bitcoin will increase to the new peak.If it happens,many will start to invest in bitcoin and lead further more raise on the price of bitcoin.

I think South Korean Government has done the right thing. Most of these exchanges have not been fair in their dealings, so they should be properly regulated and taxed.

That's only if they catch you doing something wrong. If you aren't doing anything wrong then they won't bother you.
Use something that can block IP's.

Oh well that why its call fake news. The intention is to really spread false news causing a panic to investors. That's why it is really advisable not to listen but you have to understand what's going on and used your common sense before making any decision. As newbies this is the a mistake that you won't forget and its gonna be a expensive lessons to learn.

As for South Korea, yes, this is a good move, so that at least if another step toward the legalization of crypto in the country and that people will not be nervous as to what direction the South Korean really want. So at least we all know by now that they are pro-crypto unlike China who made a sudden U-turn.

I think the tax rate is rather high, so less people would keep their crypto in the South Korean exchanges which means potential loss for the country.

I agree. I think this is inevitable to happen. Governments would try their best to control and make the cryptocurrency market work for them. Making laws and imposing are just a few of those means to control it. I agree as well with the above-stated reply saying that since there are now taxes that implicitly makes cryptocurrency transactions legal, and thus, more and more people would be a little more comfortable embracing the technology, and since it's in Korea, where most people are technologically inclined, I hope it would work for the better.

This is definitely smart marketing.

from goverment side it is a good step coz cryptobusinees now is dificult to kill, so if you can not change situation -  accept it and thing what benefits you can get to receive

In my opinion this is good news, that mean South Korea Government regulated exchange and organized it, so this is will be good for cryptocurrency market and will be increasing the demand.

Every citizens in a certain country that will legalize Bitcoin and other digital currencies should be used to the Bitcoin tax as this is the part of regulation in which a country will surely to impose such taxation policy to be use to improve the economy in which this is better than to ban Bitcoin investments.

Well the prediction for now is getting reality. I hope the second part will become true as well. We can only do our best for the community to grow. And by protecting people from scams that tend to move people away from the market

Its better than they will not ban Cryptocurrency which is down like hell now. Looks at my portfolio it drops 80%. That's really sad to look at it. Anw south korea is one of the largest economy in Asia so If they regulate cryptocurrency , other investors will not lose money in some scam ICOs like Bitroad.io. I lost some money because of this naughty scam.

I could only imagine what the USA gov will charge for tax.... 33% to 50% I'm sure.  Just pure greed!

this is good news
it means governments are accepting cryptos

The bitcoin price will be more than its $ 8,000-9,000 drop, my forecast is until it drops at $ 6000, but if the price gets below it then the bitcoin will go down deeper and will be long to rise above $ 6000.

In my opinion, the legalization of the crypto currency and the introduction of a tax of 24% is a very correct step for South Korea, which will have a very positive impact on its economy. In a few years, we will see the results of this decision, South Korea will rise in the ranking of countries in terms of economic development.  8)

In all likelihood, the bitcoin price will fall below $ 6000. This in turn will pull down all the other coins. It seems that the most pisimisticheskie forecasts come true. I think that a real panic can begin very soon. People urgently need good news, for example, about the temporary cancellation of tax for 1 year.

I do not think that the introduction of a crypto currency tax is the right step. Undoubtedly the legalization of crypto is the right step, but not the introduction of tax. Perhaps the right step would be to create special economic zones with a tax-free regime for crypto exchanges, crypto currency projects and other activities related to crypto currencies.

The tax rate is a bit high, and you need to know that the frequency of transactions in the encryption market is really high, and a high tax rate will further dampen people's trading enthusiasm. As a result, the cost of transferring to the user's hands increases.

Should this really have any bearing on the currency itself? It looks to me like they want to earn money from the businesses day to day operations. There was never any question over the legitimacy of crypto just regulation for those buyin and selling it. SK government behaving like a protection racket mob style  :)

Bitcoin isn't their national currency of course they can't tax it unless its being cashout to WON and that's when they can get their cut.  It all comes down still to how much is the value of a btc, if it goes so high, then the money they can collect is much higher. The high the BTC price the bigger the money the btc traders can provide to their economy.

I agree with your opinion, it is much better that they would able to make a legalization about crypto rather than putting tax on the crypto currency because somehow the government would be able to benefit it at some point in time.

It is good that the South Korean government's policy of using bitcoin in the country.
And I think the government requires to distribute transaction data to banks aimed at avoiding criminal acts such as money laundering using bitcoin.
By reporting transactions to the bank it will always be monitored transaction data of someone using bitcoin.

This is of course ridiculous. The only known information about transfers is the wallet. And the Bank can throw half of the transfers through another wallet and the exchange will not be against, since taxes are generally evil. People have long been accustomed to rely on themselves, and taxes are so that the government does not starve.

Its just a accountability move that the south Korean government is attempting and i believe it will have no negative effect on the cryptos, it will instead increase the level of trust, which is a good thing for crypto

At the moment, Tom Lee's prediction was correct. Perhaps bitcoin and in fact will cost more than $ 20,000 by the end of the year. In this case, the authorities of South Korea will receive very good taxes.  8)

I think with the application of taxes in korea is not a problem because in korea now it has become one of the major countries with the use of crypto and the application of such taxes in accordance with the conditions of korea that legalize crypto.