[Bitcoin Now] Falls Below 60 Million KRW... Security Issue Occurs in El Salvador Amidst This

From Next Year, Domestic Cryptocurrency Inheritance and Gifts Will Be Taxed Based on the Average Market Price Over Two Months

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin is underperforming as it falls below the 60 million KRW mark. Meanwhile, in El Salvador, a Central and South American country that adopted Bitcoin as legal tender, security issues have arisen with citizens claiming to have lost their Bitcoins.

According to the domestic cryptocurrency exchange Upbit, at 2:32 PM on the 28th, Bitcoin was recorded at 59.68 million KRW, down 2.97% compared to the previous day. Although it rose to 62.5 million KRW the day before, it is on a downward trend again. Falling below the 60 million KRW mark is the first time in five days since the 23rd.

Citizens in El Salvador are claiming that security issues related to Bitcoin have occurred. According to cryptocurrency specialized media Cointelegraph on the 27th (local time), since the 16th, citizens of El Salvador have been posting on social networking services (SNS) such as Twitter that they lost Bitcoins from the dedicated wallet "Chivo."

A Twitter user named "El Comisionado" said, "At least 50 people have lost Bitcoins worth $96,000 (approximately 113.96 million KRW) from Chivo this month," adding, "Losses vary, with some losing as little as $61, while others have lost thousands of dollars."

In September, El Salvador became the first country in the world to adopt Bitcoin as legal tender. Additionally, to promote transactions using Bitcoin, it introduced the dedicated wallet Chivo. However, from the first day of its introduction, citizens complained of inconvenience, such as Chivo not being downloadable from application platforms. Some citizens gathered in the capital San Salvador to protest against the adoption of Bitcoin as legal tender.

Meanwhile, starting next year, if cryptocurrencies are inherited or gifted domestically, taxes must be paid based on the average market price over two months. On the 28th, the National Tax Service announced that it designated the four major domestic cryptocurrency exchanges (Upbit, Bithumb, Coinone, and Korbit) as exchanges for evaluating inherited and gifted assets.

Furthermore, if cryptocurrencies belonging to the four major exchanges are inherited or gifted after January 1 next year, the taxable amount will be based on the average price of cryptocurrencies announced by the four exchanges during the one month before and after the inheritance start date or gift date. For example, if Bitcoin belonging to Upbit is gifted on February 1 next year, the period to be recognized for taxation will be from January 1 to February 28. During this period, the average price of Bitcoin across Upbit, Bithumb, Coinone, and Korbit will be calculated again as a daily average, and this figure will be the taxable amount.