Korea To Tax Bitcoin Use

[ledu_ico]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

[Vannie12]

It's possible. Then it's a step to legality. When government ask for taxes in the use of bitcoin, it means that they are accepting it for implementation. In the Philippines, there are taxes upon the use of bitcoins. Via banks, remittances and Philippine made wallets for digital currency.

[error08]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq. Han Seung-hee, the commissioner of the country’s National Tax Service, told lawmakers this weekend that the issue of how to best tax cryptocurrencies is being discussed, including the areas of capital gains tax, the VAT, and gift tax.

https://news.bitcoin.com/south-korea-tax-bitcoin-use/

Government can't let capital gains without taxes after bitcoin surpass Kosdaq, soon or later people should pay taxes from every single profit they get.
But, hopefully South Korea's NTS do not implement same regulations which issued by IRS in USA, or people will use bitcoin under the radar and will not reporting their savings in bitcoin.

[chickenado]

Do they prepare to tax the use of bitcoin or do they prepare to tax bitcoin trading winnings?

There is pretty sure already a law in South Korea where you have to pay taxes on bitcoin trading winnings as this is covered by tax payment for any kind of trading winnings.

Even if they plan to tax the simple use of it, I have no idea how they want to enforce those tax payments based on an anonymous and decentralized system?

That's normal and tax is everywhere.If Korean government already embrace and accepted bitcoin officially in their country so that's not a problem and it can make happen if they want to. It's their choice and if it helps their economy to be more successful then they have to do it. I think it's not a problem after all. The thing is how can they immediately put an action with that if there are irregularities to happen for just a sudden situation fo instance,electricity and no internet connection or even calamities and disastrously environment to happen can they still manage to tax bitcoin? What do you think?

[UCHCHILD]

That would really be cool. But how they will going to put tac in their? In everytime the user will going to withdraw or convert btc to their currency? How can they manipulate it? If so, they have back up from the system of bitcoin (in my own thinking) but who knows this will gonna happen.

[Gaaara]

It's possible. Then it's a step to legality. When government ask for taxes in the use of bitcoin, it means that they are accepting it for implementation. In the Philippines, there are taxes upon the use of bitcoins. Via banks, remittances and Philippine made wallets for digital currency.

I think you're wrong there, in Philippines we don't taxes since our governments are unaware of bitcoin, they only care about being re-elected so basically things like bitcoin won't get notice by them. We only have a certain wallet that has a partners who supports bitcoin, banks and other things that is connected to bitcoin supports it including internet provider.

[unamis76]

Regulation and laws from authorities are a two sided knife, they can empower Bitcoin or hinder its progress. Bitcoin is in direct competition with the traditional banking system, so it's more likely that regulation hinders Bitcoin... Which is extremely sad and bad. So we're better off not being noticed and having no regulation at all. We can't afford the risks that this brings.

[Yakamoto]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

Well, you can't beat the government (easily) and when there is money for them to tax, they are going to tax it just to make your life that much more difficult or try to appeal to your altruistic side, regardless of whether or not you have one, and spend your taxes on keeping those who usually don't work going off of the multitude of welfare systems that likely exist. It's insane but they use everyone as consumers and seek to force everyone to consume something in some way, either through using the welfare systems to get people spending money for food and the like, or seeking to get people to take debt to keep the economy flowing.

[jseverson]

It's kind of inevitable. This is the price we pay to avoid an outright ban. If they decide not to tax it, then everyone will just move to using Bitcoin to avoid taxes, and tax collection will plummet. The government will not be able to provide welfare and infrastructure and won't have enough funds to keep the country running. It's annoying, but it's probably the only way to stop mass adoption from causing anarchy. I'd rather have that than a complete ban. It's not like governments will be able to control Bitcoin directly anyway.

[Psalms23]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

I think this is a good news.  Because this may mean that bitcoin is already accepted by the government and worries from banning bitcoin is out of the question.  Paying tax is not that of a problem as long as bitcoining is already accepted.

[SoulBargain]

Any link? Where does this news came from? I suggest to attach it in the OP.

Anyway, like Japan and any other governments, will tax it but as long as it is not abusive and it's reasonable then no need to worry much. Also, it will be used for the country's development so think of it as a contribution and as a duty of every citizen to pay taxes.

[ruskytailz02]

It's possible. Then it's a step to legality. When government ask for taxes in the use of bitcoin, it means that they are accepting it for implementation. In the Philippines, there are taxes upon the use of bitcoins. Via banks, remittances and Philippine made wallets for digital currency.

I think you're wrong there, in Philippines we don't taxes since our governments are unaware of bitcoin, they only care about being re-elected so basically things like bitcoin won't get notice by them. We only have a certain wallet that has a partners who supports bitcoin, banks and other things that is connected to bitcoin supports it including internet provider.

If the government tracked that you have lotsbof money they will questioned you and look for you...

Bitcoin is hard to implement taxess... if these will happen wallets exchanger thatvare internet based will be partner with the government and implement some fees and taxes in every widraw remit or exchange like what western union and other exchanger did... they add taxes and aditional fees whenever we withraw it...

I think korea doe's that and it is way how government take advantage of like what is posted on this thread

[erickkyut]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

I can't think a way if how Korea (is it south or north?) can make it possible to tax Bitcoin. We all know that one of the strongest characteristics of Bitcoin is it being decentralized and can use without proper identification. For the korean government to tax Bitcoin, they should know first whom to tax. How can they trace Bitcoin users? Maybe they can tax it if they will ask for a higher transaction fees if the user wants to convert their Bitcoin into fiat.

[whoisyourking]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

This is possible and ok to the users of bitcoin than banned bitcoin in that country forever, if its true then the bitcoin is now legal in that country and it is positive in terms of legality and acceptance of bitcoin in Korea..

[pat4cryptoreal]

The taxation of bitcoin may be possible but it will be a very technical task. The government have to setup a bitcoin taxation department and the taxation department will work together with the different exchangers in order to achieve that. Government getting involve will  make bitcoin centralized which is not how it ought to be. Bitcoin is a currency that suppose to be out of government control.

[gribble]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

Yes, they have reason that “Bitcoins can be used for purchasing goods, etc., and profits arising from using them will be subject to income tax” i have got this information from here https://news.bitcoin.com/south-korea-tax-bitcoin-use/ i have said that the world always try to getting our money, it is normal if the they addopt technology of blockchain to manage of the taxes, it will be more transparant and the government of south Korea needs money to build their country.

[Brama Jasa]

of course a country wants to tax the bitcoin trade in the country, the tax can be for the development of the country, I think the Korean government is smart

[newlone]

It's too big and the total exchange big as many investors are interested and involved in bitcoin.  The government will tax it and get some money from it. Not a single state ignores a great opportunity to increase their value.

[kenkoy]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

I think this will have good and bad effects to BTC users.  good because it means that BTC will finally be legal and accepted if it will be due for tax.  Bad,  because it will create additional fees.  Both ways,  i believe this will impact Bitcoin greatly on a global scale.

[HabBear]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

Is this news? Several countries have issued guidance on how to account for taxes on Bitcoin, which isn't even as simple as saying "yeah, you gotta pay taxes on bitcoin." These countries have skipped that step and simply assumed "of course you'd have to pay taxes on bitcoin" and went straight to explaining how they expect the tax to be assessed.

[DoublerHunter]

In my opinion, this is a good step for the government to just tax the bitcoin use because it will help them to make money from bitcoin by taxing people who uses bitcoin. Bitcoin is legal in korea and the government will tax bitcoin because they want to get benefit from both side and i hope that the other countries will make bitcoin legal and tax it instead of banning it so they will both get benefit.

[darklus123]

Sad to say but yeah this is really happening to a certain countries that wanted to legalized digital currency  like bitcoin. Even if i am not a fan of it no choice but to accept it. Tho good thing about bitcoin being legalized is that we will be having a lot of option in terms of its uses.

[pooya87]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

this title is a little misleading.
there is no bitcoin "usage" in Korea that government wants to ban. what they want to tax is the trading volume. although you can call it "usage" but it technically isn't.
with that said, it is about time they did that. other countries (like IRS in US) already has laws about taxes and bitcoin. they call it a commodity from back in 2014 (IIRC) and they take taxes based on that.

[btc-facebook]

It's reasonable if they want to apply a tax for bitcoin because it can generate additional revenue
In other side, bitcoin may have lose their paradigm as decentralized currency because the government able to control bitcoin based on their policy as long as people are not experience any major loss

[FoxTheHuman]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

Many countries have started accepting it as a currency and taxing it because many investors in the country they are interested in it. But this is good news,
as more and more countries accept it, the value of it will increasingly rise in the crypto market.

[tengek37]

Toward the legality of the local government, if it is already legend and start in taxes, what will happen to market movements and bitcoin prices? whether it will affect or not? whether to make the price rise or vice versa?

[Theb]

It will be a standard thing because if you earn from your trades in the cryptocurrency market it falls under capital gains which means it is taxable. The good thing about this is usually capital gains tax are more lower compared to the income tax. I wouldn't be surprised if they do this because their own economy will be affected if the market shifts its attention to the cryptocurrency market, they have took advantage of it in which they adapted, I see no abuse of power here.

[Opquar]

This is fine. This at least tells us they're not planning on restricting its use in the near future. No government that accepts the presence of Bitcoin will let it go untaxed anyway.

[rytyr]

Russia is planning to tax its own crypto with 13% so it would be cool to see how they go about it, as a model for other governments. Although a national crypto would surely be highly centralized and control and much easier to tax.

[krauzzer02]

As long as they will not regulate the bitcoin and it's uses that's a thumbs up for that, because taxing means they need to legalize and support it completely and make coinbase or any other exchanges implement taxes by the government and help their own countries progress the thing I don't like to this system is that they can impose much more tax than your transaction fee.

[AmXProX]

I wonder if they can tax bitcoin's if it is part of a final will and testament. will it be subject for an estate tax?

[ajmapalo22]

Bitcoin is considered income so I think it is just fair and just if government will tax it provided that fair assessment should be given to all people because it is so unfair if other countries will not imposed tax to bitcoin. I understand sooner when bitcoin become the main currency of the world it cannot escape being tax but it must be fair.

[salihno71]

You can bet that sooner or later most of the governments will follow suit. In the way, it makes sense and it is expected. I'm curious to see how they will handle OTC transactions.

[Svelto]

I feel that it is fair for the government to tax its residents on the capital gains or profit from trading cryptocurrencies. And I will be happy to pay in this case, since my government somehow make Bitcoin and Cryptocurrencies legal.

[cng-]

HOW will they do that? Mandate by vendors when purchases are made in BTC?

[joseafonso123az]

I think taxing BTC is what it makes legalized in the country. If you pay your taxes towards your BTC, well, they know how much you might have, so then if you are having huges transactions happening they dont get locked or frozen because, you have already paid the taxes for what you have! This is a move towards legalization, and it will help BTC become more strong  also.

[gajebo]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

I think korea has banned the use of bitcoin in their country. what am I wrong info about that. and if what you say is true please accompany evidence or link that states it.

[saif.shaikha]

If government start taxing bitcoin, the whole purpose of having bitcoin will be defeated as than it will be brought into the fold of government control and regulation like it is for trading in fiat currencies.

In my opinion tracking the ownership of bitcoin will not be an easy task for governments but they can easily impose taxes on exchanges and service provides that deal with bitcoins. The world of crypto currencies is no longer out of government control as before as several countries are looking at ways to restrict the usage of crypto currencies.

[Ucy]

No problem taxing Cryptocurrency as long as they're not deliberately over taxed.

Secondly, they can actually find ways to tax Bitcoin without regulating it.

Finally, Could Taxing Bitcoin  eventually lead to Centralization (I hope not). There is likely hood of tax-hungry authorities demonizing securely kept Bitcoin that are impossible to tax.

[makishart]

They're taxing the "use" of bitcoin there and not practically taxing bitcoin so your saying "even bitcoin can't escape tax" is just not a real thing.
But what I'm confused, how the government could track their citizens whose transaction is using bitcoin or even earning with bitcoin, it kinda complicated things to do and the ones who's going to be taxed need to report to the government first.

[Cxfan]

The beauty of Bitcoin is that they can avoid taxes, assuming that they keep transactions under the table. Large exchanges are the low-hanging fruit for tax authorities.

[reputation]

i think if this come true, it will be a badly strike to bitcoin in a short term, not only Korea has a huge trading volume but also other countries will follow it, but the good news is that according to the history, it may hardly come true or take a long time to push this regulate

[HonestSurfer]

Hey I read the article someone posted about this Korea tax thing. It actually doesn’t really say much apart from the fact that Korea is thinking about how to get taxes from crypto in general.
So one thing you should be aware is that there are several taxes possible and we need to be clear what are we talking about. I am no tax expert (would love a feedback of an expert though) but I think the most common ones are basically:

1.   Corporate gains tax: for business entities, which make money from their regular business
2.   Income from capital profit tax: for individuals, which make money by utilizing their capital

Practically people make money from crypto in 2 ways: mining and trading. Usually (depending on the jurisdiction) mining would fall under the 1. category. A miner will have to declare the “business” and pay a corporate gains tax. Trading could fall under 1. or 2. category, depending on who does it.

Another thing is the categorization of the cryptocurrency in question. For instance, in many EU countries BTC is still regarded as “asset” and not as capital, investment or currency. This means that (for the time being) a regular retail investor won’t have to pay any taxes on the grounds of earning money with BTC trading.
Would be great to hear some tax expert on this topic.

[ged00u]

How can they able to tax bitcoin without an exchange? I mean, people know how to avoid those rules. They can transfer their money to somewhere else, some other international banks to buy bitcoin without using their local exchange. Moreover, there are many places that provide us a chance to buy bitcoin anonymously with fiat. Maybe it is just a way to collect extra money from the people. They can not stop bitcoin

[fiulpro]

  Hey

Bitcoins are already taxable in many countries thus its.. not a big deal that korea had made it taxable, bitcoins were already taxable in India since 6 months or so , and the fact that bitcoins are taxable provides a very nice platform for them were they are acceptable as any other means to earn from a job.

Government is employing taxes on them means they are accepting it And its a very nice thing indeed .

So its not at all something to worry about because its providing us a medium to connect with goverment
In a Positive way offcourse.

[sukoon]

NTS Commissioner Han Seung-hee said we are currently monitoring the status of the [cryptocurrency] transactions and will move forward quickly. so yet to decide but sooner or later they will legalise and impose tax on btc.

[junoreactor]

It's possible. Then it's a step to legality. When government ask for taxes in the use of bitcoin, it means that they are accepting it for implementation. In the Philippines, there are taxes upon the use of bitcoins. Via banks, remittances and Philippine made wallets for digital currency.

My thoughts exactly. I would rather get taxed than living in a country that does not recognize Bitcoin.
This is actually the future I would like to see, in the whole world.

And yes no one likes to pay taxes, but taxes are also used to help the public communities, help building schools, etc. as long as the taxes are not over a reasonable % , I am fine with it.

[BrewMaster]

if they take the same route as the Japanese government and a couple of others like Australian (IIRC) took, then it is a very good news for bitcoin's future and its adoption.
there is even talk among the parliament members in US to do the same thing.

they first add taxes for trading bitcoin. then in order to do it only once not multiple times, they remove any taxes on bitcoin usage. meaning when you pay with bitcoin (use bitcoin as a currency) you don't have to pay any taxes. and that helps bitcoin's adoption a lot.
as i said a couple of countries have already done that.

[bitctrimor1]

It's part of any government's power to impose taxes on services and any thing of value actually; part of that is bitcoin. Since, its value kept on increasing and increasing, it's actually expected that governments, especially those that acknowledge and recognize its value, would sooner or later impose taxes on it as part of their revenue-producing means.

[Dava.Dina]

No big deal if Korea Bitcoin is taxed,
Bitcoin has been taxed in India for 6 months or more,
The government using taxes on it means they accept it. And very good indeed.

So there is nothing to worry about because it gives us the means to connect with the government,

So the fact that Bitcoin is taxable gives a very good platform for them. can be accepted as another means to earn income from a job.

[pereira4]

Only if you were to move in a country that claims no taxes on bitcoin usage you would be safe, and as far as I know there are plenty.

I think people should pay on capital gains once, but not on every use of it. Well, maybe when you purchase something that belongs to the country that held that particular law, but taxing on a transaction basis (even if you send BTC to someone for example) it's pretty stupid and I don't think they can ever charge you on that.

Just don't be delusional if you think you can avoid taxes when dealing with states and the legacy banking system.

[ss890]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.

Death and taxes ... it seems that even bitcoins can't escape that

Why it's not possible. It's completely possible to tax bitcoin or any other crypto currencies because its being used in the world and don't forget that everything operates here under the regulation of laws. So it's government behind the tax implementation and they have full authority because they need to take care of the national economy which could be disturbed by investment of bitcoin. This is why china implemented ban on the bitcoin in first place and let the investments driven out of the country. This can happen in any country and that's why Korea might be doing that.

[btcprospecter]

I don't know how they would tax individuals using bitcoin but for big businesses and exchanges it would be a lot easier to to tax them. Atleast the government is getting on board this way. Government missing out on tax from bitcoin is one of the reasons they don't like bitcoin and other crypto currencies.

[Meepospammer]

They probably tax individuals by charging them everytime they use certain wallets. You might not feel it but the wallet companies definitely do since they are the ones with legality on this matter. Looking for individual owning bitcoin is kinda absurd, its so hard to prove someone's ownership with bitcoin.

[ClvrGmr]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

This is surely a bad thing to happen to bitcoins. Bitcoin's one advantage is that it is not affected by local taxes. This makes transactions cheaper than local transactions in banks. Bitcoin is so volatile and it can be transferred easily because it does not undergo any processes which banks and governments have. If this will happen and if many countries will be able to implement this surely bitcoin's price will go down gradually. I hope this won't get any further so bitcoin will remain and will constantly grow.

[Denamen]

There are no doubt that this is a nice news. I strongly believe after tax income Bitcoin, The government has no reason to refuse to accept Cryptocurrency and ICOs. Let buy Bitcoin right now. The bump will happen. lol

[dunfida]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

They are making a step already regarding on taxation on those services or things which are related on bitcoin earning. When we do talk about direct tax on it then its not possible that's why they would regulated instead into those services which they can able to see that they can sip out taxes on it which one is on trading exchanges which they can really impose or implement deductions on each trader to pay taxes on each profit that they would made.They can already see that its booming up and we are already talking huge money on here and its not good for their eyes to pass by those possible taxes that they would able to get.

[riskarcher]

Wow, it is true the government also took part in taking advantage bitcoin.luckily my country does not have such a rule, of course, it imposes for an unemployed person to bear a large tax. I bet sooner or later some countries will enact the system to get big profits

[rindo]

From the moment that the Bitcoin volume, of trading exchanges, overruled the Kosdaq volume, there was no other option than taxate the crypto-currency. The way to set, the method of taxation is still in discussion by the South Korean government. Possibly they will adopt Japan methods or even study what are countries are doing related to that and come with a beter improved solution for the problem. 

[Kprawn]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

If you think the idea behind Bitcoin is to avoid paying taxes, then you are wrong. You should always pay the taxes that are

due, because it is the law. If you use Bitcoin for tax evasion, you will be caught and you will face stiff penalties and/or some

jail time. Bitcoin is just a currency or some might say a speculative commodity. 

[Cindy1983]

If Bitcoin want to be legalized in anywhere I think this case is necessary cause if noboday has to pay tax for Bitcoin income I think a lot of people will take advantage of it to evade taxes. But I think to collect tax from Bitcoin income of every Bitcoin owner I think it's not easy cause it's really hard to find out all Bitcoin owner in a country

[michellee]

i think if we have to pay tax, then it will no problem at all for us because if we compare the profit with the tax, I am sure that our profit is still bigger than the tax. unless the government apply bigger tax for every people which sending the money from bitcoin to the bank account then it would be a problem. but I think the government will be fair with this and they will thinking win win solution for their people especially korea is a develop country and they are receive new technology which could bring a good innovation for their country.

[Firefox07]

That is the decision of korea. As long as the tax is low it is ok. And they will not ban bitcoin. And it means bitcoin will be legalized in korea.

[nelmari]

I think that's okay because it is their governments decision to tax bitcoin and other cryptocurrencies for as long as they are not banning bitcoin and the exchanges.

[nkarm1]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

Death? No I don't think so, for me as long as internet is there Bitcoin won't die. And about the tax thing, don't be disappointed about it. Because everything must be fair among all their citizens, and if they refused to accept taxation they might be punished by law or worst jailed. Also this is a good step for bitcoin in South Korea, because addition of taxes means bitcoin is being legalized and accepted on their country. Sooner or later other countries will follow Korea actions, meaning total legalization and adoption of bitcoin in this world is not that far.

[phr0stbyt3]

It's fine as long as bitcoin is being legitimized by tax or regulations it is better for us we don't have to worry about it getting banned in future otherwise if it isn't regulated we have a good amount of bitcoin and when we need it for any emergency the it get's banned being regulated takes our profit but we don't have to be scared anymore

[Nameless27]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

I don’t see deaths is co-related with taxation. In other words bitcoin and government can work it out for the betterment of one country, the security of bitcoin users and tracing illegally acquired bitcoin such from drugs and many more.

Taxation for the South Korean citizen is advantageous than harm, as it will be legalized in due time and they’re investors be protected. We know how Koreans love to support theyre country and it is one way to be.

[pikebu]

I think that's okay because it is their governments decision to tax bitcoin and other cryptocurrencies for as long as they are not banning bitcoin and the exchanges.

Yes, unfortunately the bitcoin's users can not see the management money of taxes from bitcoin because they don't use system of decentralize to manage it, there is not transparancy where the money from bitcoin's taxes goes.
I think the government must addopt technology behind of blockchain to manage the money from bitcoin's taxes
 it will be good than taking taxes from bitcoin's users.

[CryptosapienZA]

I am always fascinated when government attempt this. I'm interested in finding out how they will police this. The only way it is possible is if the only way to buy bitcoin is through a Bitcoin exchange then yes, it certainly is possible to police it. But smart people will start using things like local Bitcoins, then the government will be screwed.

[alfstep]

I think it will only apply to trading by adding another percentage in the buy/sell fee
Or perhaps it will only be taxed when it is cashed out into fiat

[mmmmyah]

But if they tax crypto, does this mean that crypto becomes legit there just like in Japan or USA

[Vendetta666]

If this happens they should be happy. Because it is one of the steps to legalize bitcoins in the korean country. The tax is also appropriate because if they do not do it how their country where they will get the funds to make everything ready for repair and maintenance. So we must support it because it is also for the good of the people.

[Vatimins]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

Well, it is good on one side for the people who loves bitcoins as a currency. But for the ones who loves it because of the profit it can provide, I don't think so. This is a huge step for bitcoin and all the other cryoto currencies out there because this just means that they are doing ways to make bitcoins legal and be accepted. Although the word "taxing" is quite scarry, i think they mean taxing bitcoins when you turn them into fiat. I mean, if they don't, there would be no way that people will be telling the truth to wether they possess any crypto currencies or not.

[gabmen]

Well hopefully they find a way to make compromises so that bitcoin use won't become that much different to how it's being used today. Though it's going to be hard due to bitcoin's anonymous nature, and i'd prefer it to be the way it is today, it probably would be for the betterment between btc and governments this way

[Mandoy]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

If there will be taxes on bitcoin then it is a good sign and development to bitcoin. If taxes were placed to bitcoin this means that the certain state who placed such rules have already accepted bitcoin as a currency. This will provide bitcoin a greater market since the state has recognized it, this will also promote bitcoin usage and increased its users.

[Opquar]

If paying taxes is the price to pay for Bitcoin to be legal, then I would be more than happy to oblige. You really should pay taxes anyway. Just cross your fingers that they would be used properly lol.

[eaLiTy]

If there will be taxes on bitcoin then it is a good sign and development to bitcoin. If taxes were placed to bitcoin this means that the certain state who placed such rules have already accepted bitcoin as a currency. This will provide bitcoin a greater market since the state has recognized it, this will also promote bitcoin usage and increased its users.

As a crypto currency trader and a bitcoin enthusiast i am not a fan of the government imposing rules and regulation and these sort of taxation being imposed on the crypto currency market is just absurd ,we are here for the free market away from the corrupted government and the banking system and now they wanted to exploit this market too.

[soham]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

I don't know about what others are thinking, but imposing tax on bitcoin transactions or revenue looks like a positive change to me. If bitcoin is taxed by some government, that means, bitcoin become legalized in that country. I am sure bitcoin users won't mind paying a certain percentage of tax from their trading revenue to the government and get a legal status. While majority of the governments have not taken a step to legalized bitcoin, Korea's case can work as an example to them and they might follow the same route by providing a tax framework to their citizens as well. That will be a positive move and acceptability will grow higher for bitcoin. That means price of bitcoin will also grow higher. I am sure if it happens, it will leave a positive impact on bitcoin and crypto world as a whole.

[Indrawan77]

I don't surprise this thing happened, in the next few years there will be a lot of country follow this step, the transaction volume of Bitcoin is too high, it makes the government worry, because if all people used Bitcoin it can caused the decreasing income tax, but this situation can make Bitcoin into a legal currency

[Hexah]

That's pretty normal for them since bitcoin implementation on their country is highly legal and so far that is a good sign that they really embrace bitcoin as their currency they can be used. And hence, if the government really eant to implement that rule then citizens of South Korea I supposed should acxept that fact to tax transactions between bitcoins and hope it will be also distributed to the welfare of the society just like improvement of their country.

[mevmike]

we all cant prevent the day to come when all the government in the world will pass laws that will put taxes on all bitcoin related transactions.
huge amount are now being invested in bitcoin and other cryptocurrency.
and the government won't close an eye on this forever.
it is simply inevitable...

[Yaunfitda]

I don't see anything wrong with this moved. South Korean is very friendly to bitcoin at least they just decided to put tax instead of outright ban just like China did. And people are going to bitcoin not to pay tax, they are into bitcoin because they have total control control of their money. Although there are really unscrupulous individual hiding from bitcoin. But I believed most of us don't involved ourselves illegally. I'm fine with the tax on our bitcoins.

[Reatim]

we all cant prevent the day to come when all the government in the world will pass laws that will put taxes on all bitcoin related transactions.
huge amount are now being invested in bitcoin and other cryptocurrency.
and the government won't close an eye on this forever.
it is simply inevitable...

Yes, sooner or later government can't ignore bitcoin anymore and they are going to imposed tax on it. This is the result of bitcoin gaining popularity lately. Its inevitable, a lot of cash in flowing on the ecosystem and the government want's to get a slice of it. And I think that it will bring more good to those people who are into bitcoin and for those who are thinking to join the market later South Korea.

[Blockfolioz]

At some point each and every country who has got large number of bitcoin users will initiate plans to tax based on several factors. Now Korea has come up with plans of regulating the bitcoin related transactions and tax according the value transfer. In reality how this could be functional effectively is yet to be known.

[Erkallys]

I think that at the end it gives legitimity to Bitcoin, it makes it finally an asset like any other from which the criminals from the government will take a tax on. But that is another story. At the end it is good that in such places where I will have very limited interests in the future the reglementation makes it legal to increase the legitimity of Bitcoin so that here without taxes I can still enjoy these effects on the price !

[PORN_coin]

on the other hand, this can be a positive step towards the legalization of bitcoin and the entire crypto community

[2fresh]

we all cant prevent the day to come when all the government in the world will pass laws that will put taxes on all bitcoin related transactions.
huge amount are now being invested in bitcoin and other cryptocurrency.
and the government won't close an eye on this forever.
it is simply inevitable...

Yes, sooner or later government can't ignore bitcoin anymore and they are going to imposed tax on it. This is the result of bitcoin gaining popularity lately. Its inevitable, a lot of cash in flowing on the ecosystem and the government want's to get a slice of it. And I think that it will bring more good to those people who are into bitcoin and for those who are thinking to join the market later South Korea.

Why would paying tax on bitcoin bring "more good" ?
I think we can agree nobody likes or wants to pay tax on their btc.

[SapphireToken]

we all cant prevent the day to come when all the government in the world will pass laws that will put taxes on all bitcoin related transactions.
huge amount are now being invested in bitcoin and other cryptocurrency.
and the government won't close an eye on this forever.
it is simply inevitable...

Yes, sooner or later government can't ignore bitcoin anymore and they are going to imposed tax on it. This is the result of bitcoin gaining popularity lately. Its inevitable, a lot of cash in flowing on the ecosystem and the government want's to get a slice of it. And I think that it will bring more good to those people who are into bitcoin and for those who are thinking to join the market later South Korea.

Why would paying tax on bitcoin bring "more good" ?
I think we can agree nobody likes or wants to pay tax on their btc.

Nobody likes taxes!

[plr]

Government are good at this, taxing whatever people are into, they are not going to do this if bitcoin has not become a popular trading stuff in their market, now that they saw the popularity of bitcoin in their citizen, they are now taxing it, this is the sad reality for bitcoin users.

[xuan87]

There is no doubt every country will follow this rule, when Bitcoin become big and steal the government attention then the consequences is tax, from the beginning I know it is the matter of time before the government interfere with Bitcoin but I think taxing is better than banning

[Transformbitz]

Well government are issuing the same thing, tax is everywhere and they will use that for the economy to sustain needs well. government should study more blockchain so they won't get any taxes from their citizen..

[etsonarrantes]

I think this is the first country to demand tax about BTC. I think this is something good. I hope my country would make the same, i want to feel safer with my bitcoins.

[uslfd]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

Once they start taxing bitcoin, they would unlikely make it illegal - because declaring it illegal later will mean cutting off a good source of financial income!
So actually I think this is good news!

[aysiksyava]

Boscoin's Korean coin has already entered the real world. During the ICO, investors bought the entire coin in 11 hours. In the near future, the coin will be traded on exchanges.

[Atimarieva]

Taxes are levied when converting to fiat funds?

[kueyen]

I'm happy with this. Although we automatically think "tax = evil", it means bitcoin and the money you make off of it is legal. I'd rather give away a small amount of my money and feel safe about it, rather than sitting on a mountain of bitcoin and not knowing what to do with it.

[Fox-111]

Taxes suck, but we all have to pay them. If Korea are looking to implement taxes then they are publicly saying Bitcoin is accepted and that helps mainstream acceptance, not to mention bringing in a bit of regulation.
There is a whole lot more to crypto than avoiding taxes.

[ranman09]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

How are they going to implement this? Via exchanges? Like inclusive taxes?

[Nilda]

Tax means regulation. Lack of government regulation is what keeping most of those in the sidelines from investing in bitcoins.

[Henry27]

I think if this come true, it will be a badly strike to bitcoin in a short term, not only Korea has a huge trading volume but also other countries will follow it, but the good news is that according to the history, it may hardly come true or take a long time to push this regulate.

[Tony_Nguyen]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

That's suck. I hope that they plan to pay us some money to recover the losses from trading/ investing too.

[Yzhel]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

That's suck. I hope that they plan to pay us some money to recover the losses from trading/ investing too.

I heard that Korea will ban all cryptocurrency? right? It is better for them to tax crypto rather than banning it at least you still earn profit from it rather than earning nothing. We must be positive always, of course if your people are earning you as a citizen is oblige to pay right taxes as well.

[dewi91]

not easy to legalized bitcoin in a country.. the country who will accept bitcoin certainly want to some advantages, the one of advantages are tax.. because the tax will increase the state's income and help the economy of the country..

[Tramle091296]

It is Good i think for them if they want to get a tax in bitcoin its their decision. if its really can help they economy raise and be successful why not. some people do not recognize it and don`t want it but as long the republic of Korea want it we cant counter them cause its their decision. i think more country and more country will do the same like Korea.

[windsee]

Will by tax paid by bitcoin or fiat currency? If its paid by bitcoin, that means Korea government formally recognize it?

[Freebieindia]

India has already started to Tax profits on Bitcoin where you will be taxed 20-30% on your profits depending on long or short term investment .

[icanscript]

India has already started to Tax profits on Bitcoin where you will be taxed 20-30% on your profits depending on long or short term investment .

And how to control it?
Do you need to indicate the profit in the reports yourself?

[Dudeperfect]

I am not sure about other countries but in my country, we are bound to pay certain tax on the gains made through Bitcoin. I recently talked with the vice president of one domestic exchange and he said that paying 30% tax on the gains by showing the gains under income from other sources is the best practice as of now because there is no tax rate above this level and hence government cannot raise any objection on such gains in the long run when it will recognise Bitcoin through legal point of view.

[ranman09]

India has already started to Tax profits on Bitcoin where you will be taxed 20-30% on your profits depending on long or short term investment .

And how to control it?
Do you need to indicate the profit in the reports yourself?

Yeah may i ask also, how are they able to take tax out of those investments? Or maybe its the exchange that puts tax before you can even withdraw or take profit? Please tell us.

[Winner]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

Technically the Government can do whatever they want if people are using Bitcoin to get more of the Governments money.

[BlackRacerX]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

I don't really know how koreans will ever do this but the way I see it, the government will be taxing their money from bitcoins the moment they cash out. I don't know why but it seems to me that the SK government is just trying to fishout some money out of bitcoin transactions in their country.

[orions.belt19]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

That's suck. I hope that they plan to pay us some money to recover the losses from trading/ investing too.

I heard that Korea will ban all cryptocurrency? right? It is better for them to tax crypto rather than banning it at least you still earn profit from it rather than earning nothing. We must be positive always, of course if your people are earning you as a citizen is oblige to pay right taxes as well.

Regulation is better than a ban. The korean government must have wanted to impose taxes in order to generate revenue and at the same time, control the huge volume of bitcoin transactions in their country. It's probably to avoid money laundering or illegal activities through the use of bitcoin. The government always puts the interest of its citizens first and cater to their needs by ensuring their protection and security. This bitcoin regulation is just a safeguard for their country.

[winyau8888]

For this is a big meal. Not only SK but very government want to get hand on it. And most of them do not know how to do. If they do it the hard way, it might collapsed. So, I think they will do it slowly until they can manipulate. Patience is the key, so do we. If that is the way, we should go under the radar?

[nareshrohra]

Well, its not bad to pay taxes if you have 400% growth in few months. What I don't like is you cannot declare losses if you had any. They are just one-sided in most of the countries. It is like "if you lose that's your fault we had just warned you to invest in it. If you gain, you need to pay tax"

[winyau8888]

Maybe you are right. No offense. But do you know the dark side of this government when they claimed they are capitalism and free country?

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

That's suck. I hope that they plan to pay us some money to recover the losses from trading/ investing too.

I heard that Korea will ban all cryptocurrency? right? It is better for them to tax crypto rather than banning it at least you still earn profit from it rather than earning nothing. We must be positive always, of course if your people are earning you as a citizen is oblige to pay right taxes as well.

Regulation is better than a ban. The korean government must have wanted to impose taxes in order to generate revenue and at the same time, control the huge volume of bitcoin transactions in their country. It's probably to avoid money laundering or illegal activities through the use of bitcoin. The government always puts the interest of its citizens first and cater to their needs by ensuring their protection and security. This bitcoin regulation is just a safeguard for their country.

[taiwww]

All government taxes all currency trading. Governments run on taxes. Korean government is collecting taxes on bitcoin income, but it does not accepting bitcoin as mainstream currency.  In a statement Korean government said “it will consider taxing capital gains from trading of virtual coins and will also ban minors from opening accounts on exchanges, according to a statement obtained by Reuters ahead of its official release”.  Income has nothing to do with source of income. In india bicoin is not officially legalised by the government but government is considering bitcoin income as Capital gain & collecting taxes thereupon. Same is the case in USA. Taxes are the main source of income for any government they will never let it go.

[Canoppo99]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

It is good for korean government, hopely tha tax rate is not high. And this is good for bitcoin, its mean that korea's government is regognize bitcoin. It will make the market be more positive for bitcoin.

[primeminer]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

taxes are used to build the country in order to grow and therefore all business and income must be taxed, therefore I think it is natural

[claire]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

Unless someone cashes out then how can they even regulate it unless they do it through business, but even still it is like a black market and easy to hide.

[AjithBtc]

South Korea is preparing to tax bitcoin use after the cryptocurrency’s trading volume skyrocketed past that of Kosdaq.
Death and taxes ... it seems that even bitcoins can't escape that

taxes are used to build the country in order to grow and therefore all business and income must be taxed, therefore I think it is natural

Yes, taxation is common with each and every form of income or for assets. What I think is to have a tax free living like very few countries around the globe. This will let the people have a mentality to support the government, you might raise a question how will the government operate. For this each and every sector need to operate through government. This will end corruption and other economic defects.

[cozk]

Good luck.


Remember when they tried to stop music and movie piracy on the internet ?