In the latest clampdown from tax authorities on crypto trading, South Korea’s Finance Minister Hong Nam-Ki told a parliamentary finance committee the government would introduce a taxation regime for crypto. The Finance Minister said that more specifics about the tax plan would be released in the coming weeks. South Korean ministry has been planning for a long time to introduce tax regulations regarding cryptocurrency.
South Korean government was planning 20% tax on crypto gains.
Earlier this year, it was reported that the South Korean government was considering a 20% tax on digital currency gains, leading to speculation that these would be treated as “other income” under Korean tax law. As a result, crypto transactions would not also incur capital gains tax. Now the Finance Minister of South Korea has said the government “has continued to realign its tax system to reflect changes in market conditions, but it is now working to refine its list of taxable items and types of tax this year.”
A survey reveals two-thirds of crypto users are fine with taxing crypto incomes.
According to a recent survey conducted by the wallet provider, Childly found that 66% of respondents are in favour of taxing cryptocurrencies. The survey included more than 5,750 crypto users worldwide, and only one-in-five crypto users are opposed to digital asset taxation. The Finance Minister of South Korea said that this would lead to greater tax receipts from foreign companies operating in the country’s digital currency markets. South Korea has been 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 a taxation policy for crypto incomes to regulate the market better. The Finance Minister said that the government had been taking part in international discussions about developing a new structure for digital taxation.