Reports have emerged that authorities in South Korea would enforce a 20% crypto tax on all crypto transactions starting from January 1, 2020. According to the report, the Asian country’s Ministry of Economy and Finance states that profits made through any crypto transaction would now be subject to this new tax regime.
Available information shows that the crypto tax was supposed to be implemented last year, however, crypto enthusiasts in the country had kicked against it and this made the government to first push the enforcement date to 2023, before having a rethink of 2022 now.
The crypto tax would be payable on profits that exceed 2.5 million won which is roughly $2300. The tax would also be paid on inheritance or crypto gifts as the report indicated that “the price of the asset will be calculated on the basis of the daily average price for one month before and one month after the date of the inheritance or gift.”
Crypto Users Criticizes Crypto tax Regulation
Crypto users in the Asian country have continued to criticize the South Korean government’s new crypto tax regime saying that “imposed taxes are heavier on cryptocurrency trading when compared with stock investment.”
One user who is a police officer said that he had been drawn to the crypto industry due to the level of gains his colleagues had been able to get from the industry. He went on to add that he sold his stocks to begin investing in crypto and the government’s new tax regime is “unfair to charge that much (cryptocurrency) tax when compared to taxes on stocks.”
South Korea is also looking to better regulate the crypto industry in the country as it has announced a newly revised regulation that would see crypto exchanges “adopt information security management systems and real-name account requirements as well as anti-money laundering measures.”
Bithumb, a leading crypto exchange in the country, also reported that there is a growing interest in the crypto space in the country. The crypto firm says it saw over 700% growth in registration of new users on its platform for January alone.