South Korea has been emerging as a global leader with its pop culture. The country decided to jump on the crypto bandwagon by recognizing these digital assets. South Korea has time and again revealed its intention of taxing cryptocurrencies, now the government has announced a date that it would start taxing these assets.
While this law is soon to be implemented, a prominent member of the country’s central bank has exhibited angst about the volatile nature of cryptocurrencies.
South Korea To Tax Profits Acquired By Crypto in 2022
The price movement of Bitcoin in the past few days has certainly spruced up the adoption of crypto. While some governments are outrightly banning these assets, a few others seem to be reaping benefits by taxing them. South Korea joined the list of an array of countries that have levied a tax on crypto.
In a recent report by the Korean Herald, the Ministry of Economy and Finance of the country reportedly proclaimed that a 20% tax would be levied on the profits acquired by trading cryptocurrencies like Bitcoin. This would commence from 1 January 2022. However, those individuals who make profits lesser than $2,300 or 2.5 million won are exempted from this rule.
While this law helped recoginze Bitcoin as a part of the financial structure, 20% was a bit too much several officals believed. A police officer reportedly said,
“I sold stocks I was holding recently and started to invest in (digital) coins after seeing my colleague made a lot of money from them. I think it’s unfair to charge that much (cryptocurrency) tax when compared to taxes on stocks”
Furthermore, the government had expressed interest in going on board with tax rule in 2020, however, it seems to have been pushed to 2021.
Additionally, as these crypto-assets recorded a massive slump, Lee Ju-yeo the Governor of the Bank of Korea. Once again, another authority has commented on the highly volatile nature of Bitcoin,