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Tuesday, April 23, 2024

In South Korea, a new measure makes people cringe

In South Korea, the laws are getting stricter. Now for tax returns, it will be mandatory to include gains cryptomonnaies, and that, as from 1 st January 2022. This at least shows that many local reports.

A layout that does not suit everyone

South Korea should postpone tax plans until a sufficiently prepared infrastructure is in place, ruling Democratic Party member Noh Woong-rae suggested . But it seems that his proposal did not receive a favorable reception in the ranks of the authorities. They took a new decision on the tax declaration.

Going forward, digital assets will be subject to a 20% income tax on transfer earnings. However, there is one exception. Authorities said the statement will exclude a minimum taxable amount of 2.5 million won.

To illustrate, take the example of a profit of 3.5 million won made by buying and selling cryptocurrency in 2022. This profit will be subject to a tax of 20% on 1 million won, which is a tax. of 200,000 won. In this case, the profit will be declared the following year.

The solution put in place by the authorities does not really meet the expectations of investors. They said: “We will start paying taxes without any institutional supplement.”

Cryptocurrency exchanges trying to adapt to the new measures

In South Korea, statistics show that 3.8% of the country’s population (around 1.9 million people) own digital assets . And surveys show that the average South Korean trader invests more than $ 6,000 in electronic currencies, which is above the exemption limit of 2.5 million won.

For the South Korean authorities, the goal is not to deprive themselves of a windfall of financial resources. On the contrary, they say they are aware of the importance of cryptocurrencies in the financial market. And it is precisely because of this importance that they want to reorganize the market and better follow the exchanges of digital assets in the country.

In order to achieve the regulatory objectives they have set, the authorities have taken numerous measures. For example, they have forced cryptocurrency exchanges to comply with new measures . Even if some platforms are still reluctant to the idea, others are illustrated by their sense of respect for the instructions given.

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For example, Upbit, Bithumb, Coinone, and Korbit have met the initial set of requirements. In the case of Upbit , it should be made clear that the exchange has gone above and beyond by creating new verification and KYC standards.

In South Korea, the legislation is getting tougher for cryptocurrency users. Indeed, they now have the obligation to declare the profits they make by carrying out transactions. The purpose of this provision is to better regulate the digital asset market.

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