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- The country’s previously proposed crypto tax laws have been approved and will take effect in 2022
- Hong Kam-ki also stated that the South Korean cryptocurrency industry has grown to the point that it now challenges the country’s stock market, implying that the time for taxes has arrived
- In the meanwhile, dozens of exchanges have shuttered in recent weeks, with only four having completed the registration procedure
The country’s previously proposed crypto tax laws have been approved and will take effect in 2022. Taxes were levied on numerous items, but NFTs. NFTs are now exempt from the tax. Hong Kam-ki, Deputy Prime Minister of South Korea, as well as the Finance Minister, said that the country’s cryptocurrency tax laws would take effect in January. South Korea’s new rules will tax personal cryptocurrency revenue at a rate of 20% if the total income exceeds 2.5 million won. In the process of adopting the new tax mandate, the Ministry of Economy and Finance has effectively rejected a plea to postpone crypto taxes until the additional study is completed.
Hong Kam-ki also stated that the South Korean cryptocurrency industry has grown to the point that it now challenges the country’s stock market, implying that the time for taxes has arrived. Cryptocurrency exchanges must get an Information Security Management System accreditation from KISA and report to the Financial Intelligence Unit, a branch of the Financial Services Commission, under the revised legislation on Reporting and Using Specified FSC. The Financial Services Commission ruled that all cryptocurrency exchanges would be forced to register with the government and report transactions as asked in order to better track and tax bitcoin in South Korea.
In the meanwhile, dozens of exchanges have shuttered in recent weeks, with only four having completed the registration procedure. According to regulators, Crypto frauds are getting bigger and more common in South Korea, thanks to the industry’s fast expansion. According to authorities, crypto fraud allegations climbed 42 percent in 2020, and many crypto exchanges, including Bithumb and Coinbit, have been accused of fraud. For example, in June, police arrested four executives of the now-defunct exchange V Global on fraud charges; officials claim the case includes 52,000 victims and $1.9 billion in damages.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
