In accordance with the new declaration of the Ministry of Economy and Finance of South Korea the current tax laws of the nation do not regulate the taxation of profits earned from cryptocurrency trading. This means that there will be no income tax on crypto profits as we are reading more about it in the following cryptocurrency news.
The Ministry of Economy and Finance of South Korea settled the confusion on the subject of taxation of profits earned from cryptocurrency trading. According to the announcement of the Ministry of Economy and Finance, there will be no income tax on crypto profits starting from 2020.
The interesting fact is that the Ministry of Economy and Finance is now under the rule of the Liberal Korean Party. The LKP is in support of ‘relaxed’ regulations in regard to cryptocurrencies and cryptocurrency trading for quite a bit of time. They are also historically supporters of blockchain technology and the continued development in that field.
Earlier today, the Ministry released a short announcement, simply stating that Korean crypto traders are in no obligation to pay taxes based on their income derived from crypto trading. The tax law, as it is right now, does not recognize trading gains as taxable events, which was likely a statement that many in the Korean crypto community were very glad to hear.
But while the tax law at this moment does not consider cryptocurrency earnings as income, there is the question posed by many does this fact will remain the same or not in the years to come. The officials in the Ministry of Economy and Finance are of course aware of the flaws of the tax law now if in the past they were not. There are certain sources that think that the Ministry of Economy and Finance is at this time works on writhing and proposing a new amendment that would derogate this loophole and incorporate adequate cryptocurrency taxation as fast as they can. According to Minister Kyoil Choi:
“The cryptocurrency industry should be incorporated into the institutional sphere for the sake of transparent transactions.”
The Minister’s call for transparency in the sphere of transactions came after South Korean exchanges like Upbit delisted some privacy cryptocurrencies like Zcash and Monero.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post