South Korean Government is about to introduce a tax on income from citizens trading in cryptocurrencies, The Korea Times reports. The representative of the Ministry of Economics and Finance said that related discussions "had been taking place."
"The revised bill will be drawn up by the first half of next year," the representative added.
The Korean government is planning to levy a capital gains tax on cryptocurrency owners, regardless of the approval of the bill.
To do this, the authorities, first of all, need to present an exact definition of cryptocurrencies. In addition, the authorities must decide whether they will classify income from cryptocurrency trading in the same way as from stocks or real estate.
In the case of a positive decision, they will need to receive data from cryptocurrency exchanges to identify the transaction owners.
In the case of a positive decision, they will need to receive data from cryptocurrency exchange operators to identify participants in transactions.
Previously iHodl reported that the Ministry of Science, ICT and Future Planning of South Korea will invest 450 billion won (~$380 million) for six years with the goal of developing the blockchain technology.
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