Tax authorities on alert as Bitcoin hits $100K, Vitalik goes to Moo Deng: Asia Express

Bitcoin is approaching $100,000, and it’s catching the attention of governments and lawmakers worldwide. In China, a court ruled that Bitcoin is a commodity but warned that activities like trading and payments are considered illegal financial activities. Sun Jie, a commercial judge in Shanghai, provided guidance on crypto regulations during a recent market boom, calling it the new “gold rush.”

The ruling stemmed from a 2017 case where a defendant offered token issuance guidance services for a fee, but the services were deemed illegal. Despite this, individuals are still allowed to hold virtual currency in China. Similarly, a recent case in South-Central China saw a court dismissing a claim for the return of $6.27 million in USDT, stating that cryptocurrencies are not legal tender.

In South Korea, the Democratic Party is pushing for a 20% tax on crypto gains, while Taiwan is reviewing its crypto tax regulations. Japan, on the other hand, is considering reducing the cryptocurrency tax rate from 55% to 20% as part of sweeping tax reforms expected to be passed by late 2024.

Meanwhile, a major political controversy unfolded in India, alleging that 80,000 Bitcoins seized during a cryptocurrency Ponzi scheme investigation were misused for political campaigns. Former police officer Ravindranath Patil claimed to have voice recordings implicating prominent political figures in Maharashtra.

As crypto continues to gain prominence, governments are looking for ways to regulate and tax this emerging asset class. With Bitcoin’s price climbing towards new highs, it’s clear that the world is waking up to the potential of cryptocurrencies.