According to local news reports, cryptocurrency transaction rates in South Korea have surged past the national stock exchange transaction rate. As per the Hankyung report, yesterday’s total amount of transactions combined for the four major crypto exchanges in Korea—Upbit, Bithumb, Coinone, and Kobit—was $14.6 billion. That rate surpassed the average daily transaction amount of the KOSPI Index, a capitalization-weighted index of common shares on the Korean Exchange, and KOSDAQ—the Korean Securities Dealers Automated Quotations, which has about 1,000 small to medium-sized startups listed on it.
Crypto trading volume surpassed that of KOSPI.
The combined KOSPI and KOSDAQ figures were approximately $14.5 billion and $10 billion, respectively. And the trading volume of crypto on four major crypto exchanges was roughly $14.6 billion. There are several reasons why the crypto market saw a higher level of transactions than Korea’s national stock exchange. The most obvious explanation was that this transaction surge occurred during Bitcoin’s most recent all-time high of $61,683 over the weekend. The bitcoin price surge has mostly been due to the increased interest in the crypto industry from major institutions such as Tesla, which bought $1.5 billion worth of bitcoin in mid-January.
South Korea to implement a 20% tax on Bitcoin starting 2020.
As reported earlier, South Korea will implement a 20% tax on Bitcoin and cryptocurrency profits starting January 1, 2022. The nation’s Ministry of Economic and Finance announced that profits made from trading and holding cryptocurrencies would be subject to the tax, reported the Korean Herald on Monday. The 20% crypto tax will be triggered when profits made from cryptocurrencies exceed 2.5 million won, or roughly $2,300. Gains made less than mentioned amount will be tax-exempt. South Korea previously aimed to implement the tax starting in 2020, but pushback from cryptocurrency enthusiasts and lobbyists saw the government delay implementing the tax several times.