Crypto income to be taxed in South Korea amidst crackdown


TL;DR Breakdown

  • South Korea to tax crypto income amidst crackdown.
  • Government divided on when to begin implementing crypto income tax policy.
  • Only four exchanges are left in South Korea owing to rigid regulation.

Cryptocurrency taxation policy in South Korea is set to come into effect in January 2022 as the government is set impose a 20 percent tax on profit made on crypto income.

This comes in the wake of crackdown on crypto and crypto exchanges by South Korean government.

Although the country’s Democratic Party of Korea continues to speak on the postponement of crypto taxation, a recent high-ranking government meeting stood against any further delay in the crypto taxation period.

“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,”, a government official told a local newspaper.

The country has been divided as regards implementing the crypto income tax policy or not amidst the crackdown on the industry. Some top government officials want a review of the taxation plan on crypto and virtual assets, however, The Ministry of Strategy and Finance, however, announced that it is preparing for next year’s taxation as scheduled.

Amidst confusion, crypto income tax, South Korea crackdown on crypto

The country has been in the neck of crypto exchanges for a while now trying to crackdown on crypto industry with harsh laws.

Recently, Cryptopolitan reported that authorities in the country announced that crypto exchanges not registered with the FIU must abandon their operations by Friday, 24th of September.

Crypto firms in the country that are not registered were to notify their clients they will no longer operate but also explain how clients can withdraw their money so as not to be scammed.

The rigid criteria to get registered put over 60 exchanges in line for extinction in the country after Friday, September 24.

Reports had it that only four of South Korea’s platforms, Upbit, Bithumb, Coinone, and Korbi were able to meet the tough criteria and register for business in the country.

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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