Bitcoin Drops Below $11,000 as South Korea Government Plans to Tax Crypto Exchanges



Bitcoin and other digital currencies dropped in value during Monday trading in light of the news that the South Korean government is to collect corporate and local income tax from the country’s cryptocurrency exchanges this year.

Figures from CoinMarketCap show that bitcoin is currently trading at $10,730, representing a 6.73 percent price drop in 24 hours.

However, the number one digital currency is not the only one that is experiencing a downfall in value.

Ethereum has dropped below the $1,000 mark again, trading at $985, with a decline of 5.32 percent over a 24-hour period. As can be seen from the chart below, the past seven days have been rather interesting for ether holders.

Third-placed ripple has also been impacted. Of the third digital currencies mentioned it has experienced the biggest drop in value over a 24-hour period. According to CoinMarketCap, it has dropped in price by 9.19 percent and is currently trading at $1.25.

The decline in value at the start of the trading week comes at a time when the South Korean government has revealed that it is to collect corporate and local income tax from the nation’s cryptocurrency exchanges. According to the Yonhap News Agency, digital currency platforms in South Korea will be required to pay 22 percent corporate and 2.2 percent local income tax this year if they had an annual income of over 20 billion won ($18.7 million) last year.

Amid concerns of a bubble and, in an attempt, to rein in the volatile market, the nation’s cryptocurrency exchanges will also be required to share users’ transaction data with banks either later this month or early next month.

Data from CoinMarketCap shows a sea of red among the digital currencies listed as a significant majority felt the impact from concerns over the potential for regulations in South Korea and China.

Not only that, but according to one Wall Street veteran, he had predicted that the price of bitcoin could fall to $1,000 in a market crash. Speaking to CNBC’s ‘Futures Now,’ Peter Boockvar, chief investment officer at Bleakley Advisory Group, said that it could drop by as much as 90 percent, taking the cryptocurrency back to prices not seen since last February, adding:

I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000.

About Rebecca Campbell

Rebecca Campbell is a freelance bitcoin and blockchain journalist based in England. She has a keen interest in the blockchain space and the use cases the technology is being in and is excited to see what new changes the distributed ledger brings to our day-to-day lives.



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