South Korea will implement a 20% tax on Bitcoin and cryptocurrency profits starting January 1, 2022
According to the Korean Herald on Monday, Korea will deploy a 20% tax on Bitcoin and cryptocurrency profits starting January 1, 2022. The Ministry of National Economy and Finance announced that profits are earned. Both trading and cryptocurrencies held will be taxable.
South Korea fastracks 20% tax on Bitcoin and crypto profits to 2022
Taxes will be made when the profits from cryptocurrencies exceed 2.5 million won, or about $ 2,300. Profits earned so far will be tax-free.
South Korea has previously aimed taxation starting in 2020, but protests from crypto enthusiasts and lobbyists suggest the government has delayed tax enforcement multiple times. The Korean regime previously floated the start date of 2022; however, that date was then delayed until 2023, as previously reported by Cointelegraph.
Now, it looks like the year 2022 is back on the card again. After South Korea recognizes Bitcoin as a financial asset, BTC and other cryptocurrencies will no longer be considered a tax-free preference. Cryptocurrencies received as part of an inheritance, or those received as a gift, are also taxed.
Referring to cryptocurrency gifts and inheritance assets, Herald stated:
“In such cases, the price of the asset will be calculated based on the daily average price for one month before and one month after the date of the inheritance or gift.”
More than 38,000 citizens have signed a petition protesting the impending tax as of Feb. 10. If the number of signatures on the petition reaches 200,000 signatures by the end of March, it will force the Korean government must respond officially.
Starting in March, an expected revision to the Specific Financial Transactions Act will also see cryptocurrency exchanges fall under new regulatory scrutiny. In addition to stronger information security procedures, and Anti-Money Laundering measures, the new regulation will also see exchanges forced to implement real-name accounts.
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