South Korea will tax crypto-income

The South Korean government is planning to force cryptocurrences to share trader transaction data with the banks.

A South Korean official reveals the tax plans in a message from the South Korean news agency Yonhap News. According to the official, the intention is that data sharing with banks will start at the end of this month or the beginning of next month.

Sharing data from traders could happen because the government wants to ban anonymous crypto trade. There could only be acted under real name and bank account. That measure, which would take effect from 20 January, also seems to be maintained. The Korean bitcoin exchange Korbit has announced that it will close the exchange for foreign traders as a result of that ban.

In addition, efforts would be made to take measures to tax the income from cryptocurrences. The South Korean government is planning to collect up to 24.2 percent tax on the income from the stock exchanges.

Restrain cryptomania
The two tax plans would be part of an attempt by the South Korean government to curtail cryptomania in the country. The messages create further uncertainty about what the South Korean government wants exactly with the enormous popularity of crypto coins in the country.

The big question is how concrete the tax plans are. The Financial Services Commission, the financial regulator in South Korea, states in a statement sent to various media that a system is in place to combat money laundering with cryptocurrencies, but according to the committee, concrete measures are not yet in place.

In addition, the financial authorities do not yet have a plan to monitor the transaction data of crypto traders, the commission says.

Persistent regulatory pressure
The Korean government got the wind in front of crypto dealers earlier this month after the South Korean minister of Justice said that he would come forward with a bill to ban crypto trade. Later it was added that there is first a consultation before a decision is made about a possible ban.

A petition on the president's website against 'unjustifiable rules' for crypto trade has already been signed almost 225,000 times.

Regulation can also be good
Despite the huge price fluctuations of the bitcoin and other currencies in the past month, and the decline in price partly attributed by some to the unrest about regulation in South Korea, not everyone is concerned about the developments.

Regulation could ensure that newcomers in the market do not kick in the tricksters of scammers so quickly.

"That is welcome," says Cedric Jeanson, the CEO of Bitspread, a company that focuses on bitcoin against CNBC. According to him, a consultation is a good way to think about rules with the market.