The South Korean government is reportedly planning to tax cryptocurrency-related profits, with discussions surrounding a proposed bill already taking place.
According to local news outlet The Korea Times, citing “government sources,” a related bill is close to being pass on the country’s National Assembly. South Korea’s Ministry of Economy and Finance reportedly confirmed it’s pushing for the government to impose taxes on capital gains from cryptocurrencies.
A ministry official was quoted as saying:
Related discussions have been taking place. The revised bill will be drawn up by the first half of next year.
Whether the bill is or isn’t passed, the government is still planning to levy capital gains tax on cryptocurrencies. This, the news outlet adds, means the government will have to precisely define what cryptocurrencies are, and whether they should be taxed the same way gains from the stock market or real estate are taxed.
To levy capital gains taxes on cryptocurrencies, the government will need trading records from cryptocurrency exchanges, which will need to keep track of their platforms’ users. It’s worth noting South Korea has had somewhat restrictive cryptocurrency regulations. The country banned initial coin offerings (ICOs) over concerns related to fraud and resemblances to gambling.
Cryptocurrency-related crimes in the country reportedly cost over $2.3 billion over the past two years, as some of its largest cryptocurrency exchanges have been hacked. In response the government has launched a task force to fight these crimes.
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