[Aha] Taxation of crytocurrencies. What benefits retail investors?
[aha! Blockchain] Q> There was a government announcement that taxation will also apply to the coin market just like the stock market starting from 2021. If the new rule is approved by the National Assembly and becomes reality, would that benefit retail investors? Taxation of cryptocurrencies also means a recognition that the currencies are actual assets. To come up with an institutional framework in the coin market, the government already started evaluating exchanges regarding Information Security Management System (ISMS) certification. Many exchanges are currently in the process of obtaining the certification. The process is supervised by Korea Internet & Security Agency (KISA). Exchanges such as Upbit, Bithumb, Hanbitco, Gopax and JetFinex have ISMS certification. Other medium- and small-sized exchanges are currently waiting for evaluation, while another 16 exchanges are preparing for evaluation. To obtain the ISMS certification supervised by KISA, cryptocurrency exchanges must be approved in three categories with five criteria in management processes, 13 criteria in information protection and 104 criteria in the accreditation area. As the country’s leading experts and specialists are in charge of the evaluation, the process is quite strict. Exchanges must strengthen their security systems, as well as secure more experts specialized in security. The high-level of safety would eventually benefit retail investors, who always look for a safer way to invest. Taxation isn't all bad. With the new rules on taxation, the cryptocurrency market is able to establish institutional frameworks, and some parts of the cryptocurrency market would be protected under country's laws. More institutions will invest in it, which would lead to an increase in cryptocurrency exchange market capitalizations. This kind of process would actually benefit all retail investors. This is based on questions by “Dididu” and answers by “Ethereum” and “Lee Joon-yeup” during a Q&A session on blockchain commerce platform aha. Original text: https://www.a-ha.io/questions/48114341d419e07aaf19f2400d57651f