The Korean Government will impose crypto capital gains tax starting in 2020 after the country prepared the legal tools to tax from the very sale of crypto assets as we are reading further in the coming crypto news.
Until recently, the Korean Government was one of the most active markets for crypto speculation but there was still not a completed framework to tax capital gains from the sale of digital assets as per the Korea Times. The Ministry of Economy and Finance also started working on creating a measure that will become a tax bill from 2020. An official from the Economic Ministry said:
“Related discussions have been taking place. The revised bill will be drawn up by the first half of next year.”
The Korean national assembly also worked on a crypto taxation bill and the bill was aiming to increase the transparency on all parts of the process of trading digital coins. However, Korea will not try to tax capital gains from the sale of digital assets. If the new legislation follows the usual approach to taxing capital gains, the people of Korea will have to supply a detailed history of crypto trading deals. The virtual currency exchange will also have to keep separate records for each user as well as detailed personal information.
Most of the crypto exchanges already have a KYC procedure for the number of coins traded. The Korean trades also will link the accounts to bank accounts and trade directly in Korean won and also the decentralized exchanges or obscure markets and it is impossible to trade anonymously this year. The taxing of Bitcoin and other digital coins will counter to the crypto spirit which is seen as existing beyond the national-backed fiat. However, the sale of virtual coin generates the fiat gains and is deemed taxable. But the idea of collecting a database of transactions and ownership which looks likes another attempt to try and control Bitcoin.
The Korean Government will boost the interest in crypto trading after it got low in 2019 and a part of the slide comes from the lowered activity on the markets. Bitcoin however still remains attractive and remains one of the chief sources of gains for this year. Korea joined the long list of countries that have turned to track crypto transactions.
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