South Korea may tax capital gains from cryptocurrency trading

Key Points
  • South Korea says capital gains on cryptocurrency trades may be taxed
  • South Korea may restrict trading to recognized exchanges, a government statement says

South Korea on Wednesday said it will consider taxing capital gains from trading of virtual coins, a government statement obtained by Reuters ahead of an official release showed.

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The government will also ban minors from opening accounts on virtual coin exchanges, and propose a bill to allow only eligible exchanges to operate, the statement said.

To be eligible, exchanges will need to uphold investor protection rules and disclose all bid and offer quotes. In South Korea, the National Assembly needs to approve government bills on taxes.

Bitcoin, ethereum and litecoin are going absolutely crazy

The statement follows an emergency policy meeting held to discuss cryptocurrencies. Offerings such as bitcoin have surged in late 2017.