The government of each nation always ensures that both individuals and institutions pay their taxes. With the current development of technology, governments are also trying to tax people who trade or own cryptocurrencies like Bitcoin.
The Korean Deputy Prime Minister of Economy and Minister of Strategy and Finance, Hong Nam-ki, discussed this at length with the parliamentarians in a plenary session that was held on Wednesday, 15th of September. During the session, Hong discussed the next move of the Korean government in taxing crypto traders.
While discussing with the legislators, he said that some “people who trade them (crypto) don’t pay any taxes at all.” An act he said is detrimental to the national finance because people who are trading a lot of money in crypto are safely evading tax.
In lieu of this, Hong said that the government would start to enforce tax compliance among crypto traders as from next year. Although there are still a few opposition to the postponement of this law, the Minister said it would most likely be in January next year.
According to the crypto tax bill, 20% of any crypto transaction that surpasses 2.5 million Won—which is around USD $2,115—will be taken as tax.
Having said that, there are indications that the South-Korean government is serious with taxing crypto traders. Around the end of July this year, the key South-Korean regulators were proposing a bill that would allow them to confiscate the personal digital wallets of tax evaders.