South Korea has officially postponed a 20% taxation of the cryptocurrency market to 2022 so that crypto-focused companies will be able to prepare the infrastructure for the taxation, a local news outlet Yonhap has learned.
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Hence, starting from 2022, if a person earns over 2.5 million South Korean won (~$2,500) per year with cryptocurrencies such as bitcoin, he should pay a 20% tax from this amount. The decision to postpone was made at a meeting of the Planning and Finance Committee. Initially it was planned to begin the taxation of the Korean cryptocurrency market in October 2021.
Korean authorities amended their tax code in July 2020 with the aim of charging local residents a 20% tax.
In November 2020, South Korea's Financial Services Commission (FSC) prepared a series of amendments to the current legislation aimed at forcing virtual asset service providers (VASPs) to disclose personal information about their users.
The amendments have been prepared for the act on "Reporting and Using Specified Financial Transaction Information" in order to prevent money laundering. In the act, VASPs are described are "business entities that engage in the purchase and sale of virtual assets," as well as custody service providers and brokers.
The new regulation is expected to come into force on March 25, 2021.
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