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Bitcoin Edges Down; South Korea to End Tax Breaks for Crypto Exchanges

Published 31/07/2018, 05:28
© Reuters.  Cryptocurrencies slipped on Tuesday
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Investing.com – Bitcoin and other major cryptocurrencies prices slipped on Tuesday amid reports that South Korean government is considering to end tax breaks for crypto exchanges. Meanwhile, some forex settlement providers and financial institutions are reportedly exploring the idea to adopt blockchain-based applications.

Bitcoin dropped by 0.91% to a trading price of $8,142.3 on the Bitfinex exchange at 10:44PM ET (02:44 GMT) in the last 24 hours.

Ethereum went down by 2.95% to $453.64 on the Bitfinex exchange.

Ripple slipped 2.84% to $0.443 on the Poloniex exchange, while Litecoin decreased to $82.064, down by 3.04% in the last 24 hours.

South Korea’s government is considering to pass a law that would end tax benefits for cryptocurrency exchanges. Local authorities were cited as saying “cryptocurrency transaction brokerage is not effective in generating added value.”

Hong Seong-ki, head of the crypto currency response team at Korea’s South Services Commission, said “While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security. We’re trying to legislate the most urgent and important things first, aiming for money-laundering prevention and investor protection. The bill should be passed as soon as possible.”

Meanwhile, reports this week revealed that CLS, IBM (NYSE:IBM) and nine other financial institutions would test the blockchain-based Ledger Connect, an application that offers services from different vendors, and underpins Bitcoin transaction. The companies would launch the app if the trial proves successful, reports suggested.

In other news, the launch of Blocktrade.com, a new cryptocurrency exchange in Europe, caught some attention as the CEO of the new exchange said Blocktrade.com would adhere to the local regulation requirements, the MiFID II framework.

Luka Gubo, CEO of Blocktrade.com, said, “This is an ideal way for regulators across Europe to recognize cryptocurrencies as a new asset class and put in a regulatory framework.”

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