Categories: News

Confusion about S. Korea Cryptocurrency Taxation

Amidst South Korean preparation for integration of cryptocurrency into economy, many are concerned that the South Korean government would start taxing gains made through crypto trading.

However, a new announcement by the South Korean Ministry of Finance stated that the current tax laws do not include profits made through trading in cryptocurrencies.

This may not be enough to resolve the confusion, as many are wondering whether or not this might change in 2020 or later on. According to bitcoinist.com, some sources believe that the ministry is currently working on proposing a new amendment that would include crypto taxation as soon as possible.

According to Korea’s Joongang Daily, a notice published by Vident, largest shareholder of crypto exchange Bithumb confirmed that The Korean National Tax Service (NTS) will impose a withholding tax of $70 million owed by Bithumb.

However, Bithumb is planning to take legal action against the tax claim, Vident clarified in its announcement. That means the payment may eventually be different from the stated amount.

The situation with crypto taxes in Korea currently remains unresolved. While taxes on crypto transactions are not taxable according to current laws, authorities are currently working on including a new amendment that would make crypto taxes a reality.

According to Korean Minister of Finance Kyoil Choi:

The cryptocurrency industry should be incorporated into the institutional sphere for the sake of transparent transactions.

According to the authorities some cryptocurrencies, known as privacy coins, are believed to be used for money laundering purposes. Many claim that cryptocurrencies need greater transparency in order to move forward on the road to adoption.

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