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South Korea considers cryptocurrency tax

reuters.com

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Re: South Korea considers cryptocurrency tax

#21

Post by TeMPOraL »

indubitable wrote: post #9
eksemplar wrote: post #6

Earlier quoted context omitted.

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 indi…

> 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).

Plenty of young people are easily to dupe with get-rich-schemes too. And earning money is not that helpful, especially on the poorer end - I mean, imagine that right now all your savings went to 0. Somebody cleared out your savings account and all the spare cash you happen to store around the house. Are you comfortable with that situation because you still have your job? Now consider a person on a regular, shitty, low-paying high-demand job. A loss of all money buffer can, through small unexpected expenses, quickly push someone into poverty.

So now these people stop contributing to GDP, because they can't hold a job (had to sell a car to eat, etc.), and they get on welfare, and they are unhappy and spread that unhappiness around, and if there's enough of them, they'll make a stink in the media about government not doing enough to protect their people.

This is not something socially desirable.

Re: South Korea considers cryptocurrency tax

#22

Post by Agebor »

indubitable wrote: post #14
smaili wrote: post #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…

Let's be enormously speculative and consider what might happen if cryptocurrencies do not collapse. The implications of this are interesting. They would end up being a worldwide asset that hedges against pretty much everything except worldwide economic collapse. That's sounding like the makings of the next reserve currency. What would be the implications of this for nations that currently benefit from the current wor…

It's not that speculative on the long term IMO.

In the 80s and 90s, we found a way of connecting many computers together and here we are.

Now we found a way to create programmable: trust, value, scarcity and incentives. If that's not going to change the society over the next 20-30 years, I don't know what will.

Only land ownership could remain in the space of interest of governments then (being immovable).

Re: South Korea considers cryptocurrency tax

#23

Post by [deleted] »

__warlord__ wrote: post #19
josephagoss wrote: post #16

Edit: ok not 100% sure of the solution, but I think that there should be a way for the government to stop people putting their life savings into Bitcoin.

This, in fact, goes against what Cryptocurrencies represent and what scares me the most is that people, in this case governments, are trying to regulate the new with the old. Remember, innovation always win.

[deleted]

Re: South Korea considers cryptocurrency tax

#24

Post by chii »

indubitable wrote: post #12
JetSpiegel wrote: post #10

Earlier quoted context omitted.

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"

I think this almost certainly is not the reason. You can take something as simple as lotteries to show this. Lotteries specifically target and exploit lower income individuals who we can say are probably not 'professional investors.' And they're huge money. In 2016 $80.55 billion was spent on lottery tickets in state lotteries in the US. [1] That's hundreds of dollars per person if each and every adult in the US boug…

but people don't usually put their entire life savings into lottery. but may be they could with Bitcoins...

Re: South Korea considers cryptocurrency tax

#25

Post by dmichulke »

TeMPOraL wrote: post #17
dmichulke wrote: post #11

Earlier quoted context omitted.

Why can't they? Surely they can indebt every person with accumulating govt deficits (currently 62k in the US) so what's different? https://ycharts.com/indicators/us_per_capita_public_debt

Because a) this debt at least pretends to pay for the comforts of their lives like infrastructure, security - and in some countries - education and healthcare; and b) national debt does not work the same way a private individual's debt works.

a)So taking on debt pretending to do something good is fine?

What if I say they do something bad with that debt too, is it still OK?

b) Interest rates are being paid for decades via taxes, money that could have been put to use much better. I'd say it's similar enough and don't think "it works differently" is an argument here

Re: South Korea considers cryptocurrency tax

#26

Post by kgwgk »

eksemplar wrote: post #6
KasianFranks wrote: post #5

Korea: 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…

Nothing of value is being created, at least not of the magnitude of the apparent “value” of the bubble, so making money off bitcoin is by definition getting money from someone else. Clearly it cannot work forever, and those who are left holding the bag won’t be happy.

Re: South Korea considers cryptocurrency tax

#27

Post by flashmob »

KasianFranks wrote: post #5

Korea: 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.

Relax. Looking across the sea, Japan has been positive on cryptocurrencies. Japan is always Korea's main rival and influencer when it comes to technology and everything else. This rivalry is deeply embedded in the Korean psyche. Most likely they will follow Japan's lead, they would not risk Japan taking any pieces of the crypto-currency pie from them.

Re: South Korea considers cryptocurrency tax

#28

Post by slowmotiony »

chii wrote: post #24
indubitable wrote: post #12

Earlier quoted context omitted.

I think this almost certainly is not the reason. You can take something as simple as lotteries to show this. Lotteries specifically target and exploit lower income individuals who we can say are probably not 'professional investors.' And they're huge money. In 2016 $80.55 billion was spent on lottery tickets in state lotteries in the US. [1] That's hundreds of dollars per person if each and every adult in the US boug…

but people don't usually put their entire life savings into lottery. but may be they could with Bitcoins...

I don't understand your point at all, what is stopping me from using my life savings on lottery?

Re: South Korea considers cryptocurrency tax

#29

Post by pixelpoet »

kgwgk wrote: post #26
eksemplar wrote: post #6

Earlier quoted context omitted.

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…

Nothing of value is being created, at least not of the magnitude of the apparent “value” of the bubble, so making money off bitcoin is by definition getting money from someone else. Clearly it cannot work forever, and those who are left holding the bag won’t be happy.

> Nothing of value is being created

Just like the entire financial services industry, and yet that gets a pass to wreck the world economy on the reg. It's fine to bail out rich bankers, but normal people? Nooo way can we risk that!

Smells like the global elite getting scared of power shift, and telling their lawmaker cronies to get on top of it ASAP.

Re: South Korea considers cryptocurrency tax

#30

Post by charlesdm »

worldburger wrote: post #4
verroq wrote: post #3

In 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.

Do the same limitation apply to legal entities? Why not just set up a company?
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