The Korean government will levy income tax from cryptocurrency
2020 should be the year of regulatory development for the cryptocurrency industry. Because, after the news that the IRS is planning to calculate cryptocurrency tax rates for users, the Korean government is also silently setting out legal regulations to tax capital gains from the sale of cryptocurrency assets. It is expected that this set of rules will apply from the tax season in 2020.
Will the Korean government tax cryptocurrency?
The Korean cryptocurrency market has long been considered one of the most exciting cryptocurrency speculative markets. However, the Korean government does not have a direct framework for taxing capital gains from the sale of digital assets. Therefore, the Ministry of Economy and Finance is working hard to build a regulatory framework for cryptocurrency tax rates from 2020.
An official from the Economic Ministry said:
“Related discussions have been taking place. The revised bill will be drawn up by the first half of next year.”
On the other hand, the Korean National Assembly is also studying the crypto tax bill. However, the question is, how can they control where the income comes from cryptocurrency. Because a cryptocurrency transfer from one wallet to another is simply a regular transfer. Taxing Bitcoin (BTC) and other cryptocurrencies are going against the spirit of cryptocurrencies. Because the nature of cryptocurrency is to exist beyond the support and control of the government. However, the sale of a cryptocurrency that generates profits (fiat) as a rule is taxable.
Although the result will not be known, but surely, Korea will try to tax capital gains from the sale of digital assets. If South Korea decides to approach users in the traditional way of taxing capital gains, Koreans may have to provide cryptocurrency trading history.
We are no longer able to trade anonymously
When registering to participate in the exchange, we must go through the rigorous KYC process. Korean transactions also link their accounts to bank accounts and direct transactions in Won. Apart from decentralized or OTC exchanges, Koreans are unlikely to trade anonymously in 2019.
The only reason more people aren’t using Bitcoin as money is because our overlords want to tax and surveil every single transaction you ever make.
— Ryan Selkis (@twobitidiot) December 7, 2019
The idea of collecting data about transaction history, ownership of cryptocurrencies is like an attempt to control Bitcoin. In 2019, South Korea’s interest in cryptocurrency trading dropped sharply. Part of the reason comes from the altcoin trading market is no longer exciting. Even so, Bitcoin is still extremely attractive and remains one of the primary sources of growth in 2019.
The Won currently accounts for only 0.84 percent of all Bitcoin transactions. Last month, however, the BTC / WON transaction recorded a spike, perhaps handing over material to the local taxman.
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