South Korea’s Government plans to tax cryptocurrency transactions
The state of South Korea is preparing to tax capital gains on cryptocurrency trades. The Korea Times on Dec. 9 reports that the country’s Ministry of Economy and Finance will draw up an updated bill to implement the plan by the first half of 2020.
In addition, a similar proposal to increase transparency in cryptocurrency trading is being introduced by the Korean National Assembly. When approved, a year after the plenary session of the Legislature, the new regulations would come into force.
According to The Korea Times, the South Korean government is still deciding on the clarity of cryptocurrency definition. One of the issues that needs to be clarified is whether crypto-related gains are to be considered similar to gains in stock trading or real estate transactions.
Therefore, the government might need access to trade data on cryptocurrency exchanges to enforce its taxation proposals — a procedure already underway in countries like the United States.
Cryptocurrency investors and traders usually welcome news of taxation. This is because with taxation, new regulations come in place to protect investors and traders.
South Korean government has been pro-crypto for a while. South Korean exchanges also contribute huge volume to the cryptocurrency trading industry.
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