With cryptocurrency, South Korea is known for being the hub for crypto-investments. Investors have an average of six thousand dollars of cryptocurrency assets, and now there is a possibility of including taxes in the upcoming taxes regulations.
South Korea and Cryptocurrency
South Korea is considered to be the third biggest market for BTC trading and cryptocurrency trading, on a global level. The region is reputable for being an influence on the price movements of cryptocurrency. According to financial reports by the South Korean Ministry of Economy and Finance, the Ministry is planning on adding taxes on any capital profits that result from cryptocurrency. This might be included in the next tax regulations, and it was officially announced that the tax talks had been happening for over a year. A revised bill will be established by the first half of 2020, showing how serious the inclusion of taxes is.
In order for such a law to be permitted, South Korea requires to specify the cryptocurrencies and virtual investment that allows taxes. South Korea will also have to make the decision whether the gains of cryptocurrency will be categorized in the same method as revenues from stock market trading, or profits from property dealings. In order to add taxes, South Korea must monitor records of trading from cryptocurrency exchanges, similar to other countries.
The Bill on Crypto-Assets
The revised bill that the South Korean National Assembly is currently working on is established to focus on delivering transparency and safety to any trading activity that takes place with cryptocurrency. It also aims to force any crypto-asset trading activity to act in accordance to the international anti-money laundering revisions.
The bill will require all real names of accounts and would put any cryptocurrency exchanges to be overseen by the Financial Information Analysis Institute, or FIU for short. It is possible for the bill to pass in the next session for the National Assembly and be implemented next year.
Last year, South Korea has managed to account for over twenty percent of the cryptocurrency transactions that have occurred over the world, the South Korean FSC has been focusing on anonymous bank accounts with virtual assets and it only authorized a small amount of crypto-currency exchanges to be able to have commercial bank accounts and is permitted to continue trading.
Now, all the crypto-asset traders are awaiting for the bill that could come into effect, and what that might mean for them.