Amid concerns about a weaker dollar and declining government credibility as the US Treasury's bond buyback volume falls short of market expectations, the virtual asset market observes Bitcoin's robust performance and altcoins' weakness. Meanwhile, the industry's lack of preparedness for virtual asset taxation, set to take effect next year, is pointed out, suggesting a potential deferral.
Currently, Bitcoin's price is slightly below $78,000, and in Korean Won, it is around 105 million won on major exchanges like Bithumb and Upbit. Over the past 24 hours, Bitcoin's price has fallen by 1.2%, but on a weekly basis, it maintains a slight gain of 0.5%.
Unlike Bitcoin, altcoins were more affected today. Ethereum only saw a decline of about 1%, but BNB, XRP, and Solana recorded weaknesses ranging from a minimum of 1% to a maximum of 4%. This week, altcoins showed a rebound of 2-3% on a weekly basis, but today's decline is interpreted as a result of profit-taking sales.
This is due to the weakening dollar. The dollar exchange rate, which at one point in the first half approached 1,600 won, has now fallen to the early 1,300 won range.
Generally, when the government buys back bonds, bond prices rise and bond yields fall, but after this announcement, the US 10-year Treasury yield actually rose from 4.8% to 4.85%.
The US Treasury's bond buyback volume falling short of market expectations led to an increase in bond yields. This could also lead to a decline in trust in the US government and is interpreted as a negative signal for the dollar's value.
These re-emerging conditions act as positive factors for Bitcoin, and this trend is reflected in the current Bitcoin price.
Accordingly, taxation on profits from virtual assets is scheduled to begin next year. A tax rate of 22% will be applied to income exceeding the deduction amount of 2.5 million won.
Consequently, 550,000 won will be paid in taxes.
The virtual asset industry points out that the necessary infrastructure for taxation is still insufficient. They express concerns that if tax and investigation powers continue to be pushed in this state, domestic coin trading will shrink, and particularly, coin-related capital could flow overseas.
The Digital Asset eXchange Alliance (DAXA) has repeatedly pointed out the shortcomings of the virtual asset tax infrastructure. The computer network for exchanging transaction data is not yet established, and the reflection of on-chain data based on blockchain technology is inadequate. Additionally, investigation standards for individual wallets are not clearly defined, and there is no taxation policy for coins received via airdrops.
Considering various factors, the industry's mentioned lack of preparedness is an undeniable fact. Issues with current tax fairness are also pointed out. Accordingly, although only three months remain, a tax deferral, presented as a government decision, is cautiously anticipated to re-emerge.
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