South Korea’s government has revealed plans to put a definitive end to cryptocurrency speculation in the country as of 2023. In an effort to avoid overheating and speculative investments, South Korean officials will be pushing for tax on crypto trading starting next year.
The “is cryptocurrency taxed” is a question that has been asked for a while. The South Korean government is pushing an ambitious crypto tax to 2023.
South Korea’s crypto tax plans seem to have encountered a roadblock, with the country’s National Assembly passing a measure delaying the tax law’s execution until 2023.
South Korea’s crypto tax law will be implemented in 2023.
According to one of’s prior publications, the nation has suggested imposing a 20% tax on cryptocurrency earnings beginning January 1, 2022.
However, this will no longer be the case, since members of the National Assembly’s Tax Subcommitte from both the administration and the opposition have agreed to change the measure to delay its implementation for another year.
According to the Asian country’s authority’s body language, there will be no turning back on the taxation of cryptocurrency earnings. However, the country’s political power struggle is causing this fresh delay.
Some members of the governing Democratic Party advocated for a postponement of the crypto tax bill, alleging inadequacies in the National Tax Service’s data collection systems (NTS).
Members of the opposition expressed their unhappiness with the bill’s speedy adoption “when the legal definition of virtual money is uncertain.”
The two parties, on the other hand, share a concern for their supporters, who they believe would be underserved if the present measure is passed as is. “The objective is to soften the tax base to the level of financial investment income tax,” a spokesman said, “so that virtual currency investors do not incur disadvantages.”
South Korea, in particular, has been working on its crypto tax plan since 2017, when the main issues surrounding the area were excessive speculation, money laundering, tax evasion, and fraud.
Taxation of cryptocurrency in other countries
South Korea isn’t the only government considering a cryptocurrency tax.
“Countries across the globe are changing their tax rules particularly to get a grasp on cryptocurrencies,” according to a Bloomberg article.
Austria and the United States are two examples of governments that have imposed various forms of a crypto tax to tax earnings generated via this asset class.
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