Bad news for cryptocurrency holders located in South Korea. The South Korean government is considering imposing a 20% tax on any income that is generated from cryptocurrency transactions. Cryptocurrency is still relatively new to the world of finance and larger banks and government is now playing catch-up, revising proposals, bills and figuring out a way to smoothly transition and adapt to cryptocurrency.
They are deciding whether or not cryptocurrency profits should be taxed the same way as ‘other income’ such as winnings from the lottery (which is currently subject to 20%) or treat it as income which is taxed at 40%. The vast majority believes 20% is a fair rate.
As it stands right now, in South Korea, different cryptocurrencies, are taxed at different rates with the highest one being 42%. The government’s ability to tax cryptocurrency would certainly generate a new stream of income for them. Hopefully being put to good use (creating new jobs, healthcare etc).