Tuesday, May 11, 2021

South Korean finance minister says crypto tax will come into effect next year.

The Takeaway:

South Korea's finance minister said that the government would start taxing capital gains from the trading of cryptocurrencies from next year as previously proposed.

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According to the Reuters report, South Korea’s finance minister has said the government would start taxing capital gains from trading cryptocurrencies from next year as previously proposed. “It’s inevitable, we will need to impose taxes on gains from trading of virtual assets,” finance minister Hong Nam-ki said in a news conference. When asked, the tax law should be delayed until the government has proper oversight over the industry.

 

South Korean government is planning to implement a 20% capital gains tax.

South Korea had earlier said it would start taxing capital gains from crypto trading starting January next year. Any annual gains of more than 2.5 million won ($2,253) from trading cryptocurrencies will be subject to a 20% capital gains tax. The finance minister said cryptocurrencies “are intangible assets,” adding that it was a “misunderstanding” to label them as currencies. The finance chief also warned that as the trading of such cryptocurrencies is prone to new forms of illegal fundraising and fraud, investors should remain vigilant when making investment decisions.

 

Korean officials ordered to disclose their crypto holdings.

Korean Financial Services Commission (FSC) Chairman Eun Sung-soo has ordered FSC officials who hold crypto to file reports on their investments by May 7. A report from Korean Times noted the comparative lack of regulation surrounding FSC officials’ investments in crypto when compared to traditional financial products. FSC employees are expected to notify chairman Sung-soo if they have speculated on crypto and are prohibited from making investments using information they have gained ahead of the public through their privileged position. The FSC chairman received flak from South Korea’s crypto community after urging adults not to set a negative example to younger generations through risky speculation.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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