South Korea is preparing to tax the use of Bitcoin in the wake of the explosion of the volume of transactions. In effect, the transaction volume of Bitcoin has managed to exceed that of the Kosdaq. The opinion of the state revenue Service (NTS) for the country is that it is necessary to quickly discuss the best strategy to adopt for taxing crypto-currencies. Whether in the form of tax on capital gains, VAT or donations.
The NTS tightens the rate on the Bitcoin
At a hearing of the NTS to legislators japanese, the commissioner of NTS, Han Seung-hee, has responded to questions relating to the taxation of crypto-currencies, especially Bitcoin. He was notably asked about the details concerning the plan of taxation of the NTS response to the rise in the volume of transactions of the virtual currency compared to the Kosdaq. The commissioner then responded : “I continue to tax the income of businesses and I’m also looking at whether to tax the taxes on capital gains or on capital gains in respect of virtual currencies such as Bitcoin. “According to Mr Han, his department is in the process of to think currently with the ministry of Strategy and Finance issues relating to VAT and taxes on capital gains. The commissioner stressed that the use of Bitcoin can lead to the evasion of the donations. Therefore, evaluation methods must be implemented in relation to the taxation of donations for crypto-currencies.
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South Korea is accelerating the process of regulation of crypto-currencies
It is important to remember that South Korea is working on their regulatory framework for crypto-currencies for a long time. In August, the legislator Park Young –jin has submitted a ” law on the regulation of Bitcoin “, but no action has been taken on this issue. Then, in early September, the regulators met to discuss the way in which it was necessary to treat the digital currency. They agreed on the establishment of stricter checks for transactions with crypto-currencies. In addition, the ministry of Science and Technology information and the korea communications Commission announced that they will proceed with the inspection service providers of crypto-currency. Finally, towards the end of the month of September, the government announced the prohibition of all types of ICO in South Korea.
Here is the analysis of a user just after the announcement of the prohibition of the ICO by the south Korean government.
Source : News.Bitcoin