South Korea's authorities are exploring the possibility of introducing a 20% tax on crypto-related gains, local news outlet Pulse has reported citing several government sources.
According to Pulse, the South Korean Ministry of Economy and Finance has tasked the tax department with developing a new tax that will be applied to crypto-related gains.
The country's government reportedly plans to treat crypto trading profits as "other income" rather than "capital gains".
According to the news source:
"The Finance Ministry is yet to finalize its direction but it surely has become more likely for the income from virtual asset trading to be labeled as other income, not as gains from transfer of capitals like real estate properties."
After the new tax comes into force, the National Tax Service (NTS) will be allowed to tax crypto-related gains with immediate effect.
The NTS has recently grabbed headlines after ordering South Korean crypto trading platform Bithumb to pay $69M in additional taxes. However, the exchange has filed an appeal with the courts.
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