South Korea’s cryptocurrency taxation policy is slated to take effect in January 2022, with the government imposing a 20% tax on profits made from cryptocurrency.
This follows the South Korean government’s crackdown on cryptocurrency and cryptocurrency exchanges.
Even though the country’s Democratic Party of Korea advocates for the deferral of crypto taxes, a recent high-level cabinet meeting voted against any additional postponement.
A government official stressed,
“The taxation of virtual assets will be implemented from January 1 next year as it is now…Recently, the virtual asset market has been hot, and even though investors have suffered damage, there was an opinion that it is right to raise the tax first before creating a proper safeguard to protect them…There is currently no law that can replace the current law, so the taxation will proceed as scheduled.”
During the industry’s crackdown, the country is split on whether or not to enact a crypto income tax policy. The Ministry of Strategy and Finance, on the other hand, indicated that it is preparing for next year’s taxation as planned, even though certain high government officials seek a revision of the taxation plan on crypto and virtual assets.
In the middle of the turmoil, South Korea has enacted a crypto income tax
For a long time, the country has been on the backs of crypto exchanges, attempting to clamp down on the business with draconian rules.
According to the country’s authorities, Crypto exchanges that are not registered with the FIU must cease operations by Friday, September 24.
Non-registered crypto enterprises in the country were required to notify their clients that they would no longer be operating and explain how they should withdraw their funds to avoid being defrauded.
Over 60 exchanges in the country are on the verge of extinction due to the stringent registration requirements that will take effect on Friday, September 24.
According to reports, only Upbit, Bithumb, Coinone, and Korbi, four South Korean platforms, could complete the stringent requirements and register for operation in the country.