- Crypto traders in South Korea won’t be given this exemption for a long time as the Ministry of Finance is reviewing the current policy.
- For crypto to be added to tax law, the country would have to define the assets, its legal status and other related details.
According to a recent announcement from South Korea’s Ministry of Finance and Strategy, profits earned from cryptocurrency trading will not be taxed in the country, for the time being. Nevertheless, crypto traders in South Korea may not be given this exemption for a long time. A representative from the Ministry said that they are aware of the loophole in the present tax law and are in the process of reviewing the regulations in major foreign countries so that they can effectively amend theirs.
The Ministry said:
The income tax law is only taxable on income listed as taxable. We are preparing a taxation plan for virtual assets by comprehensively reviewing the taxation of major countries, consistency with accounting standards, and trends in international discussions to prevent money laundering.
In South Korea, digital currencies have no legal status as of now. For crypto to be added to tax law, the country has to first clarify certain things like the definition of digital assets and its legal status, whether or not to classify crypto profits as capital gains, and how to receive trading information from crypto exchanges for tax purposes. The amendment would require exchanges in South Korea to implement KYC (Know-Your-Customer).
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