South Korea considers cryptocurrency tax
reuters.com
South Korea considers cryptocurrency tax
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Re: South Korea considers cryptocurrency tax
#2Updated: South Korea Clarifies Position After Reports of Possible Ban on All Crypto Transactions
"On Monday, Financial Services Commission (FSC) Chairman Choi Jong-ku clarified to reporters at a luncheon meeting that “the FSC is mapping out measures to restrict [cryptocurrency] transactions to some extent,” which he did admit include “an all-out ban,” Yonhap reported. “The restriction is aimed at minimizing side effects of bitcoin transactions and reducing speculative investment,” the news outlet added. Choi was then quoted by Asia Economy:
We are discussing to what extent the government will regulate the trade, including the prohibition of trade. The chairman noted that the Ministry of Justice is currently reviewing measures to regulate cryptocurrencies. News.Bitcoin.com reported last week on this ministry being put in charge of a new Virtual Currency Task Force in order to “set up and implement the regulatory measures through consultation between the related ministries.”
And also "It is expected that the government measures related to virtual currency will not be a one-sided regulation that prohibits virtual currency trading altogether, but a regulation that limits investment amount and investment qualification."
https://news.bitcoin.com/south-korea-reports-ban-all-crypto-...
Re: South Korea considers cryptocurrency tax
#3In addition to bitcoin’s swings of 20-30%, the premium with respect to USD also swings 10-20% in local South Korean exchanges. I really wonder what is going on in there sometimes. The premium is persistent and doesn’t seem to be arbed out. Is getting money in and out of South Korea so difficult that a 20% premium doesn’t yield an arbitrage opportunity?
Re: South Korea considers cryptocurrency tax
#4In addition to bitcoin’s swings of 20-30%, the premium with respect to USD also swings 10-20% in local South Korean exchanges. I really wonder what is going on in there sometimes. The premium is persistent and doesn’t seem to be arbed out. Is getting money in and out of South Korea so difficult that a 20% premium doesn’t yield an arbitrage opportunity?
Precisely. Tight currency flight controls (see Korean Anti-money laundering laws).
$50,000/year is the limit per capita for personal use.
BUT even then, you’d need a Korean bank account which is difficult for non-resident foreigners to get.
Re: South Korea considers cryptocurrency tax
#5Korea: Crypto is changing the world before our eyes, it's a black and white swan event combined. Better to adapt than stick your head in the sand.
Re: South Korea considers cryptocurrency tax
#6Korea: Crypto is changing the world before our eyes, it's a black and white swan event combined. Better to adapt than stick your head in the sand.
Crypto is changing the world. I've made money off of bitcoin, but I've done so responsibly, like I suspect must people on HN have, by only betting what I could easily afford to lose.
By going mainstream that sort of reasonable/safe approach has ended, and people are now happily risking their entire savings. This will certainly be great for some people, but it also has the potential to be absolutely devastating.
In America you may not care about that, but in my part of the world, this means that we're sitting on a real risk of society having to clean up after a bunch of people lose everything.
The old world financial system is regulated to prevent regular people from losing everything on investments. I suspect that in time Crypto will be regulated similarly.
This isn't very libertarian, I know, but I'm old enough to have seen a few bubbles burst and the result isn't pretty.
Re: South Korea considers cryptocurrency tax
#7In addition to bitcoin’s swings of 20-30%, the premium with respect to USD also swings 10-20% in local South Korean exchanges. I really wonder what is going on in there sometimes. The premium is persistent and doesn’t seem to be arbed out. Is getting money in and out of South Korea so difficult that a 20% premium doesn’t yield an arbitrage opportunity?
Precisely. Tight currency flight controls (see Korean Anti-money laundering laws). $50,000/year is the limit per capita for personal use. BUT even then, you’d need a Korean bank account which is difficult for non-resident foreigners to get.
How about not using fiat currency whatsoever
Re: South Korea considers cryptocurrency tax
#8> Australia’s central bank governor Philip Lowe warned on Wednesday the fascination with the assets felt like a “speculative mania.”
Just curious, what is it about speculation that has govs so worried? It’s quite clear at this point Bitcoin has grown far too large and most are now speculating on its value as a store so what benefit is there to step in, attempt to regulate it, and risk its undoing? To me, I’m reminded of Sean Parker’s Social Network quote about putting ads on TheFacebook, It’s like you’re throwing the greatest party on campus and someone’s saying it’s gotta be over at 11
Re: South Korea considers cryptocurrency tax
#9Korea: Crypto is changing the world before our eyes, it's a black and white swan event combined. Better to adapt than stick your head in the sand.
Crypto is changing the world. I've made money off of bitcoin, but I've done so responsibly, like I suspect must people on HN have, by only betting what I could easily afford to lose. By going mainstream that sort of reasonable/safe approach has ended, and people are now happily risking their entire savings. This will certainly be great for some people, but it also has the potential to be absolutely devastating. In Am…
Can you elaborate on "society having to clean up after a bunch of people losing everything."? Perhaps I'm reading too much into your post, but so far as I can tell you're suggesting you reside in a nation with stronger social systems than the US. And a number of people failing, who otherwise would not have, could pose a strain on such systems. Yet this is confusing to me since presumably we're speaking of older individuals. Young individuals are, generally, still earning money and so they are already sustaining their own livelihood regardless of their savings (or [sudden] lack thereof). But back to the older individuals, would these individuals not already be receiving social benefits - healthcare, social security, etc? It seems that their personal dependence on these would increase - but their burden on society would not change, at least not particularly meaningfully.
Like I said, probably reading way too much into your comment. Curious what you meant!
Re: South Korea considers cryptocurrency tax
#10> Australia’s central bank governor Philip Lowe warned on Wednesday the fascination with the assets felt like a “speculative mania.” Just curious, what is it about speculation that has govs so worried? It’s quite clear at this point Bitcoin has grown far too large and most are now speculating on its value as a store so what benefit is there to step in, attempt to regulate it, and risk its undoing? To me, I’m reminded…
If non-professional investors start putting their life savings into Bitcoin and it crashes, the government can't just say "though break, you will starve on retirement"