South Korea will introduce a tax on Bitcoin Traders from 2022
South Korea will introduce a tax on bitcoin traders from 2022
The Ministry of Economy and Finance of South Korea has decided on the timing of the introduction of a capital gains tax on bitcoin traders and operations with cryptocurrencies. The changes will take effect on January 1, 2022, writes The Korea Herald.
The authorities will tax 20% on cryptocurrency trading profits over KRW 2.5 million (~ $ 2,230). Similar rules will be implemented when inheriting or receiving gifts in digital assets.
Since February 10, more than 38,000 citizens have signed a petition to protest the government’s plans. If that number rises to 200,000 by the end of March, the cabinet will have to react.
Bitcoin exchanges in South Korea are required to complete KYC procedures by September 2021 as part of the implementation of the Law on Special Payments. It also envisions a ban on anonymous cryptocurrencies.
Recall that in November, the Planning and Finance Committee of the National Assembly of South Korea proposed to postpone the introduction of income tax on cryptocurrency transactions until January 2022. It was originally supposed to take effect in October 2021.
The South Korean government’s plans to impose a capital gains tax on cryptocurrency transactions became known in December 2019.
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