The South Korean authorities have reported they are working on the development of a regulation to tax individual cryptocurrency profits.
The South Korean Ministry of Strategy and Finance has confirmed it intends to introduce a series of taxes on virtual assets through a bill because the current law does not allow to tax individual crypto trading. In particular, the ministry has said:
"In the case of a corporation's virtual currency transaction, all transactions that increase the entity's net assets are subject to taxation under the current law, so it is taxable, but it is practically impossible to produce tax revenue results by distinguishing only virtual currency transactions."
For this reason, the country's authorities are working on the development of regulations to solve this problem. They are reportedly studying how other countries regulate this type of tax with the aim of developing a coherent law:
"We are preparing measures to impose taxes on virtual currencies by comprehensively reviewing cases of taxation by major countries, consistency with accounting standards and trends in international discussions on preventing money laundering."
iHodl reported just a few days ago the South Korean authorities had forced crypto exchange Bithumb to pay about $68 million in additional taxes.
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