In the response, it said, “Based on law, there’s no precedent that can clearly determine what bitcoin is,” and recognized that it is not subject to any laws or regulations.
Presently, it is not subject to banking laws as well as Financial Instruments and Exchange Law, as banks can’t serve as a broker or open accounts designated for these coins.
On the other hand, the administration also expressed that “there’s no law that prohibits” the use of these coins as a mean of transaction. However, it clarified that if corporations and individuals were to gain profit from the sale of these coins, then it would be subject to corporate, income and consumption taxes.
Finally, it added that the if the coins are used for money laundering, then it could be deemed as a violation of the Act on Prevention of Transfer of Criminal Proceeds.
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