South Korea to tax cryptocurrency gains

The South Korean government is planning to implement new taxes on capital gains earned through cryptocurrencies.

The Ministry of Economy and Finance has confirmed it is aiming to enforce the taxation next year, according to reports.

Similar discussions have been held at the National Assembly to pass a related bill which aims to improve transparency surrounding the trading of digital assets.

If the bill is given the green light during the Assembly’s plenary session, it will come into effect one year after the regulation has been made official.

The government is looking to include capital gains taxation on cryptocurrencies regardless of whether the bill is passed or not.

However, for this to be official, a more precise and clear definition of digital assets is required.

The Assembly will also deliberate whether it will tax gains earned through trading crypto, similar to the taxes imposed on trading stocks or real estate transactions.

If it decides to tax crypto trading gains, it will need to obtain trading records from exchange operators to identify traders and retain separate records for each one, reports the Korea Times.

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