A lot of angry crypto traders from South Korea say they are prepared to quit the crypto sector forever over the 20% crypto trading tax that was proposed recently by the government earlier this week. This is a sign that the traders in other nations could have to deal with this in the near future as crypto tax laws are now being drawn by governments across the world so let’s read more in the upcoming crypto regulation news.
The proposals that will be bundled with a huge range of tax changes are almost certainly voted into law in the next parliamentary session which will take place in autumn. This will allow the law to promulgate in 2021 and will see anyone earning more than $2100 in crypto trading profits that are obliged to pay 20% of their earnings to the tax agency. Mira Kim, a South Korea-based blockchain consultant said:
“A lot of people really seem to think that it’s not fair, that the bar has been set too high. Stock traders, for example, are allowed to offset their tax payments for up to five years [depending on the size of their trading profits], but it doesn’t look like that will be an option for crypto traders.”
Kim added that many angry crypto traders told her that going from paying nothing to paying a 20% tax on crypto is just too much of an increase and that the government should introduce taxes gently if they want to make money from the traders instead of scaring them off:
“I don’t know if it’s just angry talk, but a couple of very active traders have told me that as of the end of this year, they will stop crypto trading for good.”
According to Chosun, legal experts agreed that crypto traders and stock traders were being treaded differently and they are hoping to find legal loopholes to help them evade the tax regulator which only ends up in frustration:
“Even [people trying to] bypass [the tax] by using an overseas exchange will eventually have to use a fiat ramp at a domestic exchange. That process will involve clarifying how you acquired the funds.”
The tax authorities will be able to pick up on the deal and will have even more questions. Furthermore, the taxman was given the option to hit the new crypto tax evaders with a second 20% bill if they fail to declare their earnings.
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