October 1, 2022

Korean authorities will begin to tax income from cryptocurrencies in 2020

Korean authorities will begin to tax income from cryptocurrencies in 2020

The Korean government is preparing legal rules for levying capital gains tax in cryptocurrency. New legislation should come into force in 2020.

According to the Korean Times, the Ministry of Economics and Finance has confirmed its intention to introduce new rules next year.

A revised bill will be prepared in the first half of next year, an official from the Ministry of Economy said.

The new bill aims to increasetransparency of operations with cryptocurrencies. Upon its adoption, residents of Korea will be required to disclose information about transactions in cryptocurrency. On top of that, cryptocurrency exchanges will store the personal data of each user.

Currently, most cryptocurrency exchangesalready applying the KYC procedure. Korean traders also tie their trading accounts to bank accounts, so they usually trade directly in tandem with the Korean won, the country's national currency.

The implementation of the new rules is expected tonegatively affect the cryptocurrency market, which is supposed to exist independently from each other without government control. However, the sale of digital assets generates a fixed profit and therefore must be taxed. Note that the idea of ​​collecting transaction-related data and cryptocurrency information is seen as government mechanisms in an attempt to control cryptocurrencies.

Now Korea can join a number of countries that already track and tax crypto transactions and trade, such as the United States and others.