As the value of the crypto industry has been going on an uphill journey, regulating these assets has become just as important. South Korea’s government seems to be taking the essential measures to do so. While the South Korean government revealed that it was all about regulating crypto, a recent delay on regulations pertaining to the digital assets was imposed.
South Korea To Enforce Crypto Tax Rule In January of 2022
While the crypto industry upholds privacy and anonymity, several seemed to have taken advantage of it and even went on to engage in tax evasion. Keeping this in mind, the South Korean government decided to spruce things up a bit. Back in June, the South Korean authorities part of the Ministry of Economy and Finance put forth the idea of taxing the profits garnered via crypto assets. This further received a thumbs up in July and a 20% tax on crypto profits was to be implemented by October 2021.
However, as per a recent report by a local South Korean news agency, the 20% tax on crypto gains was shifted to January 2022. In a recent meeting preceded by the South Korean National Assembly, the government decided to give the 20% tax on gains acquired via crypto trading a green signal. South Koreans that engage in crypto trading activities that go beyond $2,000 would reportedly be taxed by 20%. In a recent amendment proposed last week, a delay was urged to the law that was coming into force in October 2021. The local crypto platforms reportedly suggested that they lacked the time to formulate a precise tax reporting foundation.
The South Korean government seemed to have approved this request and pushed the crypto tax rule to 1 January 2022 from October 2021. This is said to give the local crypto platforms a three-month window to put into place a credible tax reporting base.
South Korea has been time and again proving that it was more than just its pop culture. The country has been sifting through the crypto-verse and seems to have garnered an increased adoption across the region.