Taxes Are Coming… South Korea, The U.S. and India on Bitcoin Taxes

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We see it time and time again.

Something amazing comes out and starts its flight to the moon, and then there are regulations, rules, and laws. This isn’t any different with Bitcoin taxes.

Although, (luckily) Bitcoin has had almost ten years to run without much regulatory authority.

Helping the platform grow into what it is today.

There are new proposals around the world that we are going to dive into today.

South Korea Aims To Regulate Cryptocurrency Trading

Many South Koreans have been trading and profiting from cryptocurrency.

Despite that, the South Korean government released a statement on December 13th (you can find it here).

While the statement is in Korean, we are going to break it down for you.

  • Prevent unaccredited investors from dealing with losses
  • Prevent strictly regulated cryptocurrency exchanges from allowing unaccredited investors in a highly volatile market.
  • Request banks and exchanges to ensure underaged and foreigners can’t open accounts on these exchanges
  • Temporarily suspends institutional and retail investors from investing in cryptocurrency.

While this seems like heavy regulations, they speak to it as though they are trying to protect investors from a volatile market.

Granted, we will see how this plays out, and if we see spikes on decentralized exchanges like Cobinhood in the future.

The U.S. FEC May Propose Bitcoin Taxes

Another story recently released was about the U.S. exploring Bitcoin taxes and that for the cryptocurrency market at a whole.

What this bill would do is a few things:

  • Make capital gains occur on like-kind asset trading (currency-to-currency)
  • See asset swaps like Bitcoin to Bitcoin cash be considered long-term holding still
  • Tax gains on the first currency purchased
    • I.e. buying BTC at $300 would be taxed as gains before the BTC purchase at $3000

Now of course taxes are coming inside of the U.S., but what they are is unknown.

Many big investors have said with taxing your first purchase to keep your BTC and other currencies off exchanges and in different wallets.

This way when you finally do go to sell the cryptocurrency it is from last purchase, as the first bought one may still be in your wallet.

Deloitte’s Jim Calvin said that he would be taking all of his cryptocurrency of exchanges before the end of the year.

India Wants Some Of Your Bitcoin They Don’t Want You To Have

India actively persuades investors to not invest in Bitcoin.

Despite that, they are now looking to get some of the Bitcoin that you aren’t supposed to invest in.

As one of their Income Tax department specialists recently said:

We are looking at collecting information about modus-operandi of bitcoin exchanges, investors, their source of investment and possibility of collecting tax.

And with that will come a request for information from Indian exchanges as well as tax payments.

Although, it is still unknown if those payments would come in the form of Bitcoin (if always held) or India’s national currency.

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Thanks for reading,

The GCA Team

 

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