Yonsei University economist Sung Tae-yoon believes it is too early to impose taxation on cryptocurrencies for South Korea as the crypto market "has not developed enough in a stable manner," The Korea Times reports.
According to Tae-yoon, cryptocurrencies cannot be considered a universal asset like traditional paper currencies.
The economist highlights that any strict regulations or taxation may harm the potential growth of the virtual currency market.
"The financial authorities should think twice before imposing taxes on the market, as the digital currency industry is still in its infancy," Tae-yoon added.
Tae-yoon points out that any "rash taxation" can be a stumbling block for sustainable growth of the industry.
iHodl earlier reported that the South Korean government plans to unveil details of its crypto-related taxation guidelines next month.
The South Korean Finance Minister Hong Nam-ki says the government has continued to realign its tax system to reflect changes in market conditions, but it is "especially working to refine its list of taxable items and types of tax this year."
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