The South Korean Ministry of Finance has decided to delay the plan to tax crypto profits for the time being. After news of Seoul considering the law made headlines earlier this month, speculations surrounding the topic suggest that South Korean crypto investors will have to start paying taxes on profits. their cryptocurrency from January 2022. However, under the new plan, the government of the Asian Country will revisit the matter a year later, in 2023.
South Korea’s National Assembly passed a bill to roll back a one-year crypto capital tax on Tuesday, Nov. 30, Reuters report.
Following the passage of the tax bill, crypto traders making profits worth more than $2.5 million (about 19 crore) from crypto trading will have to pay a 20% tax to the Korean government .
The report adds that the bill will be adopted at a plenary session on December 2.
Meanwhile, the country is also looking to tax its transactions token is not replaceable (NFTs), locked virtual collectibles and transferred ownership blockchain.
Leaders have conflicting views about whether NFTs can be treated as virtual assets before taxes are imposed on them.
According to Korean law, virtual property certificate holders need to pay 20% tax on income exceeding $2,102 (about Rs 1,500,000) from the sale of assets, such as works of art. NFT art of a famous artist, a The report of The Korea Herald explained earlier.
In September of this year, a new rule came into being in the country requiring cryptocurrency exchanges to register with the Financial Intelligence Unit and work with banks to ensure accounts named real.
According to Korean daily Hankyung, the crypto space is experiencing a second nationwide boom in South Korea since 2018 with over two million nationals testing it out in the arena.
