September 26, 2022

South Korea Introduces Cryptocurrency Taxation

South Korea Introduces Cryptocurrency Taxation

The South Korean government plans to introduce taxation on income from citizens cryptocurrency trading.

According to local news publicationThe Korea Times, citing "government sources", the country's Ministry of Economy and Finance seeks to introduce taxes as early as next year. The representative of the ministry noted:

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

Now the country does not have a regulatory framework and legal framework for the classification of cryptocurrency trading.

For the adoption of such a bill is necessaryFirst of all, enter the exact definition of cryptocurrency in the legal field and decide by what analogy (with shares or capital gains from real estate) the tax will be levied.

The regulator also plans to oblige cryptocurrencyexchanges file trade records for tax collection. This summer, the South Korean financial service tightened control over cryptocurrency sites.

While gradually recognizing cryptocurrency, regulators around the world are introducing its taxation.

Only last month, Ukraine also proposedcryptocurrency tax bill. Kazakhstan plans to tax cryptocurrency mining. Brazil requires a cryptocurrency transaction declaration from traders for tax purposes.