After revising its tax rules in 2020, the South Korean government has introduced an amendment which will tax profits made from cryptocurrency trading.
As reported by Asia Today, the amendment is expected to be implemented within a month — following a meeting between vice ministers and the country’s Cabinet — introducing a number of additional taxes on capital gains. According to the amendment, citizens who have an annual income of more than 2.5 million won ($2,300) from trading cryptocurrencies will be taxed at 20%, which is significantly lower than the 50 million won ($46,000) threshold for taxing gains made from stocks.
The new tax rules were first revealed in July, with the South Korean government targeting an October 2021 implementation. The proposed tax regime was delayed several times in 2020, however, and the implementation date kept being pushed back. After comments from local crypto advocates were made, the government decided to push the date back to January 2022, citing the need to build the relevant tax infrastructure first. Asia Today has now claimed that this date has once again been pushed back, this time to 2023.
The South Korean government has also been focusing on protecting its citizens from illicit activities connected to crypto, such as money laundering and fraud. With that in mind, the country’s Financial Department introduced legislative amendments to its Special Payments Act back in November, which will ban virtual asset service providers from handling “dark coins”, privacy-oriented cryptocurrencies.