Thursday, May 19, 2022

South Korea Proposes To Impose Tax On Cryptocurrency

The South Korean financial authorities have recently, proposed to introduce income tax on crypto trading next year. But the crypto investors do not support this, in fact, they have raised some excruciating questions regarding the proposal.

On one hand, a huge group of crypto investors have cried foul over whether the government will collect a tax on digital currencies, while on the other hand, the policymakers do not see cryptocurrencies carrying any intrinsic value which could be beneficial for investors.

As per the report, the authorities in South Korea are in dilemma. It is struggling very hard to regulate crypto trading in the country, as the daily crypto trading value has reached over $17.9 billion.

Presently, the South Korean government has imposed a few regulations on cryptocurrencies. It has also mentioned that cryptocurrencies are crypto assets that do not have any intrinsic value.

On April 22, while discussing his views on cryptocurrencies with the lawmakers of the country, Financial Services Commission (FSC) Chairman Eun Sung-soo, said, “A cryptocurrency is a crypto asset with no intrinsic value and a highly speculative (investment).”

He further stated that the government could not protect crypto investors, as they are part of a speculative market which has little regulatory oversight.

Bank of Korea Gov. Lee Ju-yeol believes that cryptocurrencies are highly volatile in nature, therefore, they could not be used as a medium of exchange or payment.

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