South Korea considers the tax on crypto-currencies as a means to regulate the market

The south Korean government announced on Wednesday that it could tax the gains on the exchange of crypto-currencies. During this time, global regulators are very concerned about the situation. Recently, the governor of the australian central bank said that the market is faced with a mania of speculation.

And while the futures of Bitcoin have made their world debut on a u.s. exchange this week, the leaders were forced to deal with the development of crypto-currencies. They are thus compelled to look for a way to regulate this sector.


A considerable rise of Bitcoin this week

The Bitcoin, the biggest and the most popular digital currency, has topped $ 17,000 this week, reaching historic highs this year. The SEC has cautioned that the negotiations of the digital assets may be violating the federal law. The crypto-currencies are very popular in Asia. Many investors operate on the market in Japan and South Korea.

In the Face of this enthusiasm, the south Korean government has decided to put in place a system of taxation on the profits obtained on the sale of virtual currency.

Here is a video explaining the decision of South Korea to impose a tax :

A device designed to regulate the market

To be able to operate in the sector in South Korea, companies will have to comply with the rules for the protection of investors and to be transparent. The measures must still be approved by the Parliament. Seoul will continue to prohibit all transactions of crypto-currencies in the country.

Thomas Glucksmann, head of marketing at the stock exchange Gatecoin based in Hong Kong, stated that the regulations in South Korea will not have a negative effect on the market of the virtual currency. In Japan, operators must register with the government. In April, the japanese government has granted the legal status of crypto-currencies as means of payment.

Source : Reuters