South Korea to tax cryptocurrency business

South Korean authorities are now very interested in how to benefit the state from the growing cryptocurrency market. With this in mind, they are now searching for ways to tax cryptocurrency income and deals. The VAT and gift taxes are also planned for development and adoption in the future.

One of the leaders of this process is Han Seung-hee, the member of the National Tax Service. He voiced the aforementioned governmental plans to the lawmakers during the past weekend. In response to the question about cryptocurrency taxation plans, he told:

“I am still taxing business income, and I am discussing whether to tax the value-added tax or capital gains tax with regard to virtual currencies such as bitcoin.”

Image courtesy of Yonhap News

“We are currently monitoring the status of the transactions and will move forward quickly,” Han Seung-hee added.

Bad news for right-wing anti-authoritarian economists, who, of course, believe that governmental taxes for business activities are always bad and made by corrupt officials to fill their pockets. But in reality, the country could get even richer, and if the market is taxed, the government will have more reasons to protect crypto market from frauds, thus helping to solve one of the biggest problems this market currently has as well as making it more attractive for new players who were previously afraid of investment risks.