September 26, 2022

South Korea plans to tax cryptocurrency revenue

South Korea plans to tax cryptocurrency revenue

The South Korean government is discussing the taxation of citizens' income derived from cryptocurrency transactions.

The country's Ministry of Economics and Finance wantsso that this mechanism is adjusted in 2020. The government is already discussing this topic and plans to prepare a bill in the next six months.

South Korean media report that authorities wantlevy a capital gains tax on cryptocurrencies regardless of the adoption of legislative amendments, and now they are forming an accurate definition of virtual currencies in order to decide which asset group they are closer toapplication of relevant tax standards. The government also intends to collect and study the trading data of crypto exchanges in order to levy taxes on their basis.

The ground for the future system began to preparein advance. In November, the bill regulating the activities of crypto exchanges was amended, according to which the leaders of unregistered platforms face imprisonment.