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South Korea considers cryptocurrency tax

reuters.com

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Re: South Korea considers cryptocurrency tax

#81

Post by RobertoG »

mewwts wrote: post #66
RobertoG wrote: post #36

Earlier quoted context omitted.

National currencies are not really in risk. Suppose that bitcoin or similar are used as currency in practice (that it's very far of happening, by the way). Even if you are able to do all your operations in a cryptocurrency, you will need to pay taxes. Governments only accept their own currency, so, you need to get it to pay taxes, so, demand of national currency is going to exist always. >> "economic vessels like nat…

But wouldn’t that have a profound impact on the value of a currency? If all demand for it dissappeared except taxes what would happen to it’s value relative to other currencies? What would happen to trade?

Maybe demand wouldn't be impacted. Taxes affect every spending in the economy.

If you need to pay your taxes where that currency will come from? You are going to need to win it somehow.

Instead of exchange currencies in order to be able to pay taxes, why not accepting payment in the government currency in the first place?

Re: South Korea considers cryptocurrency tax

#82

Post by UncleMeat »

ethanwillis wrote: post #71
dqpb wrote: post #39

Earlier quoted context omitted.

For an “infrastructure” that burns dozens of terawatts of power per year I would at least expect fast transactions, and yet...

MFW it takes up to two weeks for an international wire transfer to clear. MFW banks are closed on Sundays.

How many international wire transfers does a typical person make in their life?

Re: South Korea considers cryptocurrency tax

#83

Post by kazagistar »

noarchy wrote: post #70
lucozade wrote: post #69

Earlier quoted context omitted.

> Thank goodness it’s impossible to ban crypto! No it's not. It may be hard to prevent all SK citizens from using cryptocurrencies as SK is a reasonably open society, but it would be straightforward to ban their use.

A ban won't stop crypto any more than it stops illegal drugs, prostitution, etc. That said, there would be an effect on the crypto markets if a handful of major nations took action. So the question I have would be: will they aim for the taxes (presumably allowing crypto trading), or for an outright ban?

Sure, but unlike drugs or prostitution, aggressive police action doesn't harm any underprivileged classes, but rather a bunch of affluent tax evaders.

Re: South Korea considers cryptocurrency tax

#84

Post by jstanley »

thkim wrote: post #76
fragsworth wrote: post #75

Earlier quoted context omitted.

> Bitcoin & cryptos are financial weapons of mass destruction. You need to explain this. Many of us just think it's a good replacement for gold and other precious metals. Is gold a "financial weapon of mass destruction"?

that's a valid question. three reasons why bitcoin & crypto is NOT like gold and very dangerous. 1) limited supply: drives up price enormously. almost endless. minimal supply, infinitely increasing demand. depending on how far this will go it can potentially suck up all liquidity in the world. 2) no authority, no price stabilization, meaning extreme volatility that adds fuel to vol & price rise, 3) ease of access: an…

> 1) limited supply [...] 2) no authority [...] 3) ease of access

But there must be something bad about it as well, right?

Re: South Korea considers cryptocurrency tax

#85

Post by mtgx »

kazagistar wrote: post #83
noarchy wrote: post #70

Earlier quoted context omitted.

A ban won't stop crypto any more than it stops illegal drugs, prostitution, etc. That said, there would be an effect on the crypto markets if a handful of major nations took action. So the question I have would be: will they aim for the taxes (presumably allowing crypto trading), or for an outright ban?

Sure, but unlike drugs or prostitution, aggressive police action doesn't harm any underprivileged classes, but rather a bunch of affluent tax evaders.

Do you think most people owning cryptocurrencies are affluent tax evaders?

Re: South Korea considers cryptocurrency tax

#86

Post by pjc50 »

seibelj wrote: post #49
non_sequitur wrote: post #2

Updated: 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 effe…

Thank goodness it’s impossible to ban crypto! Everyone in SK withdraw from the exchanges before they seize it!

SK has quite a "policeable" internet; for a while they required use of real names, although that has ended. https://thenextweb.com/asia/2012/08/23/south-korea-scraps-la...

Re: South Korea considers cryptocurrency tax

#87

Post by pjc50 »

mtgx wrote: post #85
kazagistar wrote: post #83

Earlier quoted context omitted.

Sure, but unlike drugs or prostitution, aggressive police action doesn't harm any underprivileged classes, but rather a bunch of affluent tax evaders.

Do you think most people owning cryptocurrencies are affluent tax evaders?

Well, they are now the price has shot up. Although this does remind us that "affluent" and "liquid" are not the same thing and that capital gains tax usually requires realising gains to be a taxable event.

Re: South Korea considers cryptocurrency tax

#88

Post by watoc »

noarchy wrote: post #70
lucozade wrote: post #69

Earlier quoted context omitted.

> Thank goodness it’s impossible to ban crypto! No it's not. It may be hard to prevent all SK citizens from using cryptocurrencies as SK is a reasonably open society, but it would be straightforward to ban their use.

A ban won't stop crypto any more than it stops illegal drugs, prostitution, etc. That said, there would be an effect on the crypto markets if a handful of major nations took action. So the question I have would be: will they aim for the taxes (presumably allowing crypto trading), or for an outright ban?

If South Korea bans exchanges in the country or at least restrict their operations that could have a major impact. It would still be easy for Koreans to trade one crypto for another but much more difficult to exchange crypto for USD or any other currency.

Re: South Korea considers cryptocurrency tax

#89

Post by kazagistar »

glorkk wrote: post #64
thkim wrote: post #48

Bitcoin and cryptos ought to be banned for good. Cryptocurrencies are scam and outright bubble that will bring down the world economy. There is no currency without an authority to guarantee its value. Cryptos are pure bubble. If there is any good in this thing, it's ease of transaction, which is a question of underlying technology - it has nothing to do with lack of authority or decentralized scheme that cryptocurren…

> Bitcoin and cryptos ought to be banned for good. Serious question: how would you go about “banning” cryotocurrencies? The most you can do is close exchanges which would make crypto harder to acquire and liquidate.

Arrest and jail anyone known to buy or sell any amount of the currency, for cash of other other goods. Ban any comapny that trades in botcoin from doing an buisness in thr country. Sure, you can keep your wallet, but as soon as you try to exchange it for anything else, you are risking jail time... very few people would bother.

Re: South Korea considers cryptocurrency tax

#90

Post by freeflight »

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 would also all but entirely nullify a major chunk of government power and control.

At the danger of being somewhat off-topic: The tv show Mr Robot explores a scenario comparable to that in a very interesting and well-made way.

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