Crypto tax in South Korea is ‘inevitable’ in 2022, says minister


South Korea’s finance minister said that cryptocurrencies like Bitcoin will be taxed as “intangible assets.”

Amid the growing opposition against the new cryptocurrency tax regime in South Korea, finance minister Hong Nam-ki confirmed that the government will start taxing capital gains from crypto trading starting next year.

“It’s inevitable, we will need to impose taxes on gains from trading of virtual assets,” the minister said when asked whether the tax should be delayed until the state has proper industry oversight in place, Reuters reports Tuesday.

Hong emphasized that cryptocurrencies like Bitcoin (BTC) will be taxed as “intangible assets”, noting that it was a “misunderstanding” to view them as currencies. The minister also warned that crypto trading is vulnerable to new forms of illegal fundraising and fraud, calling on investors to stay vigilant when making investment choices.

As previously reported, South Korean lawmakers initially discussed a 20% capital gains on crypto trading in July 2020, proposing that any annual gains of more than 2.5 million won ($2,200) would be subject to the tax starting October 2020. In late 2020, the South Korean government officially postponed a new tax regime on crypto gains until 2022, facing major criticism and pushback over the proposed crypto tax from local crypto lobbyists.

Indeed South Korea Prime Minister nominee Kim Boo-kyum recently promised to look into the crypto tax regime to make sure traders get fair treatment under the law.

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currencies to display

Subscribe To The Latest Crypto News

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

World Wide Crypto will use the information you provide on this form to be in touch with you and to provide updates and marketing.