Opinion: Bitcoin Traders From South Korea Will Pay Tax Of 20%

According to local South Korean crypto-media, the country's authorities are thinking about to increase in capital gains tax on operations with digital currencies up to 20%.

Where does this information come from?

This conclusion was made by representatives of the private sector, who discussed legislative initiatives of the government of South Korea.

What's this all about?

These possible legislative changes may be connected with a new interpretation of cryptocurrencies: as a commodity, not a currency. That is, digital assets can be considered as electronic certificates of economic value, but during operations, it is regarded as an asset.

“Until now, virtual assets have been recognised only as a function of currency and have not been subject to income tax, but recently, virtual assets (like Bitcoin) are increasingly being traded as goods with property value. Considering various conditions, such as the recognition of intangible assets with property value, the necessity of taxation, and the recognition of the property value of virtual assets are being raised at the same time.” – wrote in the statement. 

Who's it really for?

Representatives of the private sector believe that the new rules will apply only to residents of South Korea, while everyone else will be exempt from this tax