South Korea Plans to Postpone Cryptocurrency Tax Rule to January 2022

Spread the love

South Korea is planning to delay the implementation of its crypto income tax rules to January 2022.

According to a report by local media outlet DongA, the move to extend the implementation date by three months from the initial October date to January of the following year is been advocated by lawmakers belonging to the country’s National Assembly.

The Emergence of The Bill and The Proposed Extension 

Earlier reported that South Korea intends to levy a 20% income tax on cryptocurrency gains through a bill proposed by the country’s legislative body. The taxes will be administered on capital gains of at least 2.5 million South Korean Won ($2262.49). The proposed crypto tax bill, which is also scheduled to tax gains from Initial Coin Offerings (ICOs) and mining operations, came amidst the perception of increasing growth in cryptocurrency exchanges and crypto-related transactions and activities in South Korea.

With the implementation of tax rules scheduled to commence in October 2021, the parliament’s proposed extension is in response to cryptocurrency exchanges in South Korea, who said they needed more time to develop the capacity for the required tax reporting system.

RECOMMENDED READ:  No One Knows Why Binance.US Is Down Right Now

The build-up to the implementation of the crypto tax rules involves compliance with the Special Financial Information Act, which mandates that exchanges need to complete a business report by having a deposit and withdrawal account that can verify crypto exchange users’ real names. This is scheduled to be completed by September 2021 before the new crypto tax extension move is onboarded. There is no indication that the proposed extension will affect this deadline at the time of writing.

South Korea and Clampdown on Cryptocurrency Exchanges

Through its law enforcement agencies, South Korea has earned a reputation for clamping down on cryptocurrency exchanges with questionable financial transactions. The Korean police raided Bithumb’s office on at least two occasions on fraudulent allegations against the crypto exchange’s Chairman.

Given its track record, South Korean authorities may be strict on cryptocurrency exchanges that violate the crypto income tax rules once this eventually comes into effect.

Image source: Shutterstock

 216 Interactions,  4 today

Stellar Lumens, Aave, Cosmos Price Movement Analysis for 11th April, 2021

Stellar Lumens moved within a bull flag pattern, but the pattern may be reversed if $0.58 -help is not sustained. Read more

Algorand, Bitcoin Cash, FTX Token Price Movement Analysis for 11th April, 2021

Algorand wasn't yet able to ascend above its horizontal channel. If the bulls can prevent a collapse in the coming Read more

Cardano, Bitcoin SV, Compound Price Movement Analysis for 11th April, 2021

Cardano observed a pattern of declining exchange rate, indicating that the market was likely in a delivery process. However, in Read more

Why retail Bitcoin traders should foresee a price increase

Big Bitcoin wallet inflows indicate a bullish pattern turnaround in the coming week. The price is currently about $60000; but, Read more

Where are ADA, ETH,  DOT, and UNI price movements heading?

Based on price action in March and the first ten days of April, a pattern has appeared on the price Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more Coin, Hedera Hashgraph,Monero Price Movement Analysis for 11th April, 2021 Coin was under selling pressure at $0.23, but it still had help in the $0.19-$0.2 range. Hedera Hashgraph would Read more

Litecoin Price Movement Analysis for 11th April, 2021

Since the beginning of the year, the price of Litecoin has increased significantly. LTC was returning 93 percent year to Read more

Ripple’s CTO comments on XRP’s greatest achievement.

Bill Gates made a remark a few years ago claiming that digital currencies are the future of banking. With technologies Read more

Chainlink, BitTorrent, Elrond Price Movement Analysis for 11th April, 2021

Chainlink traded in a narrow range of $33.1-$31.2, with low volumes working towards a bullish short-term result. BitTorrent Token was Read more

Leave a Reply

Contact Us