Asian countries are periodically more aggressive in terms of crypto regulation than many European countries. China remains the most tenacious region that has issued a severe crackdown on cryptocurrencies, and to this date, it has not eased it down even a little bit. South Korea, on the other hand, might be a little less aggressive in its approach to cryptocurrencies and decentralization, but it also has its concerns regarding crypto and tries its best to control it however it can.
Recently a bill was presented in the South Korean National Assembly, which hinted at the prospect of issuing a 20% tax on all virtual asset gains. The receivers of this bill would have been crypto traders and investors who have turned a profit on their recent crypto investments. May it be a direct investment into a dedicated cryptocurrency, futures ETF for non-fungible tokens they would have to chip in a 20% tax from their profits to the state.
Crypto Tax Law
This was to be made part of the South Korean income tax law, but it is now being delayed by a whole year, and this proposition was agreed by all South Korean political parties. This new amendment which has been made into this South Korean income tax law, will allow investors and traders to breathe a little and try to formulate a plan which allows them to turn a handsome profit on their crypto investments and then cut a piece of it in terms of crypto tax and giving it back to the state.
At the same time, the state would have the opportunity to tune its income tax law for cryptocurrencies further and cross out any loopholes or misinterpretations which are there. Despite the bill getting postponed for a whole year, many investors have urged the Senate not to factor in the small to medium-sized crypto investors and traders as individuals on which this bill can be stomped. This matter has not been finalized yet and is to be taken in the next session; it is highly unlikely that this request would be entertained as every investor, no matter the capacity in which they are trading in the crypto industry, must pay a 20% tax on all their gains from crypto.
