South Korea is considering reclassifying cryptocurrencies as “commodities” instead of currencies, which can tax bitcoin and other cryptocurrencies with taxes of around 20%.
This week’s discussions focused on changing current legal guidelines as a way to introduce a capital point tax for cryptocurrencies.
The move, reported by the cryptocurrency publication CoinTelegraph, would imply that bitcoin and other “electronic certificates of economic value” can be seen as a taxable asset.
A tax law would have major implications for the country’s cryptocurrency trade and is likely to affect business worldwide.
South Korea is among the world’s largest cryptocurrency hubs and is conducting a series of massive exchanges.
In addition, the country has high levels of adoption, with a 2017 survey showing that more than one in three individuals were active buyers in cryptocurrencies.
The amount of bitcoin buying and selling has dropped in recent months as a result of the financial effect of the coronavirus pandemic.