##South Korea: Economists say taxing Bitcoin is a “premature” decision; here’s why

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South Korean economists aren’t happy with the government’s proposal to tax Bitcoin and other cryptocurrencies, days after reports suggested the latter.



Any “cryptocurrency tax” must be abolished and not implemented, the country’s academics told local reporters over the weekend. 




The reason was singular and simple — taxes on an emerging asset class and disruptive technology sector may block broader industrial growth in the country; one that suffers from an ongoing employment crisis.





Taxing Bitcoin is “premature”



South Korea’s economy hinges on slow-growth and a family-run business system called “chaebol,” making the job market notorious to enter into and condemned for poor wages.

With th


e above in mind, Korean economists believe cryptocurrencies are a burgeoning asset class, while blockchain technology presents long-term growth opportunities for the country.



Ask Sung Tae-yoon of Yonsei University. The Harvard-educated professor says implementing crypto-taxes is a “premature” decision, considering the digital asset market is still developing and is not as established as other sectors.




Sung believes cryptocurrencies have a long way to go before being regulated similar to fiat currencies. The professor has a point — Bitcoin’s been around since 2009, but cryptocurrencies have gained widespread prominence only since after 2018. 



The above means cryptocurrencies are, in all regards, still a nascent development and not a decade-old. Sung explains:



“Any rash taxation or introduction of regulations can be a stumbling block for sustainable growth of the industry.”



BTC gains to be reported


Korea’s cryptocurrency tax decision came late last week after years of deliberation and parliamentary exchanges. Until the date, cryptocurrencies were considered a “tax-exempt safe haven” in the country,  with regulators and experts fiercely opposed over their legality.