South Korea Plans to Tax Cryptocurrency-Related Profits

The South Korean government is reportedly planning to tax cryptocurrency-related profits, with discussions surrounding a proposed bill already taking place.

According to local news outlet The Korea Times, citing “government sources,” a related bill is close to being pass on the country’s National Assembly. South Korea’s Ministry of Economy and Finance reportedly confirmed it’s pushing for the government to impose taxes on capital gains from cryptocurrencies.

A ministry official was quoted as saying:

Related discussions have been taking place. The revised bill will be drawn up by the first half of next year.

Whether the bill is or isn’t passed, the government is still planning to levy capital gains tax on cryptocurrencies. This, the news outlet adds, means the government will have to precisely define what cryptocurrencies are, and whether they should be taxed the same way gains from the stock market or real estate are taxed.

To levy capital gains taxes on cryptocurrencies, the government will need trading records from cryptocurrency exchanges, which will need to keep track of their platforms’ users. It’s worth noting South Korea has had somewhat restrictive cryptocurrency regulations. The country banned initial coin offerings (ICOs) over concerns related to fraud and resemblances to gambling.

Cryptocurrency-related crimes in the country reportedly cost over $2.3 billion over the past two years, as some of its largest cryptocurrency exchanges have been hacked. In response the government has launched a task force to fight these crimes.

Featured image via Pixabay.

President Trump Wanted to 'Go After Bitcoin' in 2018, John Bolton Reveals

Michael LaVere
  • Former national security advisor John Bolton's claims that President Donald Trump wanted to "go after bitcoin" in May 2018. 
  • Bolton's new book details a tense exchange between President Trump and Treasury Secretary Steven Mnuchin over cracking down on crypto-assets.

Former national security advisor John Bolton said that President Donald Trump wanted to “go after bitcoin” in 2018. 

According to a report by the Washington Examiner, which received an advanced copy of Bolton’s tell-all book The Room Where it Happened,  President Trump wanted to crack down on bitcoin and cryptoassets in 2018. 

The book claims that President Trump told Treasury Secretary Steven Mnuchin to put pressure on the trading and selling of bitcoin. 

The report reads, 

Don't be a trade negotiator," Trump allegedly said, as was written in The Room Where It Happened, a copy of which was provided to the Washington Examiner. "Go after Bitcoin [for fraud].

According to Bolton, the exchange took place in May 2018 amidst a tense discussion over trade sanctions and tariffs placed on China. 

The report also notes the Trump administration’s history of skepticism towards cryptocurrencies, culminating in the release of new guidelines for the trading of crypto-assets earlier this year. 

Mnuchin said in a statement made in February, 

We want to make sure that technology moves forward, but on the other hand, we want to make sure that cryptocurrencies aren't used for the equivalent of old Swiss secret number bank accounts.

Featured image by Library of Congress on Unsplash