South Korea is poised to do cryptocurrency under a plan confirmed by a senior government minister this week. More specifics of the tax plan will be revealed in the coming weeks.
In the latest crackdown from tax authorities on crypto trading, South Korean Finance Minister Hong Nam-Ki told the parliamentary finance committee that the government would introduce a tax regime for crypto.
The Finance Minister said that more specifics on the tax plan would be released in the coming weeks. The South Korean ministry has been planning for a long time to introduce tax regulations on cryptocurrencies.
South Korean government plans 20% tax on crypto profits
Earlier this year, it was reported that the South Korean government was considering a 20% tax on digital currency profits, leading to speculation that this would be treated as “other income” under Korean tax laws.
As a result, crypto transactions will also not be subject to capital gains tax. Now South Korea’s Finance Minister said the government “continues to realign its tax system to reflect changes in market conditions, but is now working on improving the list of taxable items and types of taxes this year.”
A survey reveals two-thirds of crypto users are fine with taxing crypto income
According to a recent survey conducted by wallet providers, Childly found that 66% of respondents support cryptocurrency taxes. The survey includes more than 5,750 crypto users worldwide, and only one in five crypto users oppose taxation of digital assets.
South Korea’s finance minister said that this would lead to greater tax receipts from foreign companies operating in the country’s digital currency market. South Korea is at the forefront when it comes to regulating cryptocurrencies.
The country recently passed a historic bill that made crypto trading legal in the country. Now the country is looking to implement taxation policies for crypto revenue to better regulate the market.
The Minister of Finance said that the government had taken part in international discussions on developing a new structure for digital taxation.