Taxing Crypto Trading Gains ‘Inevitable’: South Korea Finance Minister

South Korea Finance Minister Hong Nam-Ki has described the taxing of gains from crypto trading as “inevitable,” according to a published report.

The minister was asked whether the tax would be delayed until the government has improved its oversight of the industry, according to Reuters.
“It’s inevitable, we will need to impose taxes on gains from trading of virtual assets,” Hong said during a news conference.
Crypto traders’ gains will be subject to 20% tax on profits over 2.5 million won (~$2,250).
The tax was originally to be implemented in October 2021 but was pushed back to January 2022.
South Korea is also requiring crypto exchanges to register as Virtual Asset Service Providers (VASP) with the Financial Services Commission (FSC) to demonstrate the robustness of their anti-money laundering (AML) systems.
However, the FSC chair Eun Song-soo said last week that none of the country’s estimated 200 exchanges have yet done so, meaning they risk all being shut down in September when the rules are set to be enforced.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jamie Crawley

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Taxing Crypto Trading Gains ‘Inevitable,' Says South Korea Finance Minister: Report

Crypto traders’ gains will be subject to 20% tax on profits over 2.5 million won (~$2,250) from January 2022.