South Korea Introduces 20% Cryptocurrency Profit Tax

South Korea's Ministry of Economy and Finance is considering a 20% tax on income fromoperations with cryptocurrencies.

According to local news publicationKorea Times dated January 20, the ministry ordered its revenue department to consider cryptocurrency taxation. And although the tax plan has not yet been formally adopted, according to the source, the government can introduce a 20% tax on profits from crypto trading.

Recall that at the end of last year, there were reports that South Korea was developing a taxation system for cryptocurrency traders.At the time, a spokesperson for the ministry said: 

Relevant discussions are already underway. The bill will be prepared for the first half of next year.

And while it is not known exactly how the tax system will work at this point, some experts suggest that the government mayClassify cryptocurrency profits as "other income" rather than capital gains.It should be noted that the "other income" category also includes profits from winning the lottery or in various contests. 

Based on materialscointelegraph.com