When the authorities are scrambling to put up new capital gains taxes, you’re more than likely seeing a bubble.
South Korea is now reviewing how profits from cryptocurrency trading are treated for capital gains, and at the same time the country’s regulators are looking at conditional cryptocurrency trading on qualified exchanges.
Elsewhere, Australia central bank governor described the attention on Bitcoin as “speculative mania” following up comments from the central bank of antipodean neighbour New Zealand which said it was a classic example of a value bubble.
On Wednesday, Bitcoin was changing hands above US$17,200.