South Korea Introduces Cryptocurrency Taxation

The South Korean government plans to introduce taxation on citizens' income received fromcryptocurrency 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

Currently, there is no regulatory framework or legislative framework in the country for the classification of cryptocurrency trading.  

To pass such a bill it is necessaryFirst of all, enter the exact definition of cryptocurrency into 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 submit trading records to collect taxes. This summer, the South Korean Financial Service tightened control over cryptocurrency platforms. 

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.