[Bitcoin Now] Bitcoin Falls to 45 Million Won Range Amid US Congress Cryptocurrency Tax Agreement News

Criticism Also Arises That It Is a Symptom of Not Understanding How Technology Works

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has fallen to the 45 million KRW range. This is interpreted as being adversely affected by news that the U.S. Congress agreed on cryptocurrency tax increases to fund the infrastructure bill investment plan.

According to the domestic cryptocurrency exchange Upbit, as of 2:29 PM on the 2nd, Bitcoin recorded 45.9 million KRW, down 0.81% compared to the previous day. It had risen to 49.47 million KRW the day before but has since dropped sharply.

The news of cryptocurrency-related tax hikes in the U.S. appears to have acted as a negative factor. On the 1st (local time), U.S. economic media Forbes reported that the U.S. House and Senate agreed to increase cryptocurrency-related taxes to raise funds for an infrastructure investment plan worth about 550 billion USD (633.27 trillion KRW). The total funds to be raised through this cryptocurrency tax increase amount to approximately 28 billion USD.

However, criticism has continued. The tax increase is being implemented by broadening the definition of brokers (decentralized and P2P exchanges) who transfer cryptocurrencies, but the scope is considered too broad and ambiguous. On the 1st, U.S. Senate Finance Committee Chairman Senator Ron Wyden criticized on Twitter, saying, “While tax evasion through cryptocurrency clearly needs a solution, this tax increase does not understand how the technology works,” and added, “It looks like applying offline store regulations to online shopping malls.”

Meanwhile, the overseas credit rating agency Moody’s downgraded the credit rating of El Salvador, which accepted Bitcoin as legal tender. According to cryptocurrency specialized foreign media Coindesk on the 30th of last month, Moody’s lowered El Salvador’s credit rating from B3 to Caa1. Moody’s cited the downgrade reason as “Governance has weakened due to the law recognizing Bitcoin as legal tender,” and explained, “Tensions with cooperating countries such as the U.S. have escalated, and the financial support agreement with the International Monetary Fund (IMF) has faced difficulties.” El Salvador plans to use Bitcoin as legal tender starting September 7.