In reports today, India and South Korea are announcing they want their cut from cryptocurrency investors. BlockTribune
and others are reporting that India has sent tax notices to cryptocurrency investors following a nationwide survey. The notice asks crypto investors to provide details of their total cryptocurrency holdings, and the source of their funds.
In addition to India, South Korea has announced today
that they will be collecting 24.2% tax on virtual currency exchanges. Under current laws, all corporations with income of over 20 billion won (US$18.7 million) are required to pay 22 percent and 2.2 percent of corporate and local income taxes on their income.
If that was not enough, South Korea also announces
that they will require cryptocurrency exchanges to share user data with banks, in a potential move to impose taxes on the transactions, an official at financial authorities said Sunday. They have also banned creating anonymous cryptocurrency accounts until banks install a system to ensure only real-name bank accounts and matching cryptocurrency accounts to be used for deposits and withdrawals. Banks are expected to introduce the system, which will require cryptocurrency exchanges to share users' transaction data with banks, late this month or early next month, according to the official.
I know it seems like every week (or more) we report on how Cryptocurrency is going to die. It hasn't yet, but if one thing can swiftly put a nail in the coffin it's governmental regulation and taxes. Will it crash? I have no idea, but with plenty of news stories we don't even cover coming out near daily with more regulation, rising hardware costs, and even environmentalists getting mad at the amount of electricity being used, it does seem likely that the end is near.
Posted by rgmekanic 1:08 PM (CST)
Bithumb, one of South Korea's major cryptocurrency exchanges, is expected to pay about 60 billion won in corporate and local income taxes as its estimated earnings reached 317.6 billion won last year, according to Yujin Investment & Securities. Bithumb reported 49.23 billion won in earnings on 49.27 billion won of sales for the first seven months last year.