South Korea to propose gradual taxation on cryptocurrency trading
Updated: Mar 3
The South Korean Government is proposing to introduce a trade-tax on cryptocurrencies, as part of its 2020 tax reform plan - due to be announced later in the year.
The Korean Taxation Policy Association, or KTPA, has proposed that profits earned from cryptocurrency trading should in the future be subject to transfer income taxation.
This approach is in contrast to countries such as the United States, which view cryptocurrency as a form of property and tax it accordingly.
The Korean Blockchain Association argued that current tax infrastructure is inadequate and that cryptocurrencies need more sophisticated legislation."
South Korea is anticipated to introduce progressive tax levying from 2021, yet it's not obvious whether this will be akin to a capital gains tax or will tax sales.
The Korean Blockchain Association claimed that current tax infrastructure is ineffectual and that cryptocurrencies need more complex legislation. In recent years South Korea has become identified as one of the world's leading hubs for blockchain development.