Korea urged to overhaul regulations on cryptocurrencies
Posted : 2021-05-09 16:04
Updated : 2021-05-09 16:13
Live price charts of cryptocurrencies are shown on a market board at a crypto asset exchange in Seoul, April 27. Yonhap
Gov t needs to take cue from advanced countries
By Yi Whan-woo
The financial authorities here are facing growing calls to recognize cryptocurrencies as a new asset class and preemptively overhaul regulations in order to prevent virtual asset-related fraud and protect individual investors.
Such calls come as cryptocurrencies are increasingly becoming a mainstream form of investment in Korea. According to Coin Market Cap, a popular data source for price changes in crypto assets, the combined daily turnover at the nation s top four cryptocurrency exchanges ― Bithumb, Upbit, Coinone and Corbit ― reached 4.5 trillion won ($4 billion), May 7, triple the size of the trading volume on the main KOSPI bourse
Korea faces dilemma over cryptocurrency taxation
Posted : 2021-04-23 10:10
Updated : 2021-04-23 10:10
This file photo taken on June 17, 2014, in Washington, DC, shows bitcoin medals which use peer-to-peer technology to operate with no central authority or banks. Korea s financial authorities are moving to impose an income tax on cryptocurrency trading from next year. AFP
South Korea s financial authorities are moving to impose an income tax on cryptocurrency trading from next year, but investors in digital tokens have raised a nagging question about the proposed taxation.
A growing number of cryptocurrency investors have cried foul over whether the government will collect a tax on virtual currencies while top policymakers see no intrinsic value in crypto assets amid a lack of regulations to protect cryptocurrency investors.
âAlarmâ Rings as Crypto Trading Outpaces Stock Market in South Korea
Source: Adobe/СеÑгей ШимановиÑ
South Korean crypto trading volumes have outperformed stock market activity for the first time in the nationâs history, with crypto trading gathering pace at a rate some find âalarming.â
Media outlets such as Yonhap and Segye Ilbo, as well as Kyunghyang Shinmun reported that on April 15, crypto trading volume figures peaked at USD 21.5bn per day.
The combined daily total for the stock market â the
KOSDAQ market plus the sum of the South Korean securities markets and South Korean tradersâ activities on overseas markets â reached USD 18.8bn on average in March. April figures are not yet available.
New South Korean Tax Structure for Crypto Profits Starts Next Year
Last Updated: 22 February 2021
The South Korean government has been doing significant work to establish a robust tax regime for cryptocurrencies. In its latest development, the government appears to have set a final date for the implementation of a 20 percent tax levy on crypto profits.
2022 is Final
Over the weekend, local news source The Korea Herald reported that South Korea’s Ministry of Economy and Finance had announced an amendment to its policy to implement a 20 percent tax bill on crypto profits. Per the report, the tax structure will take effect from January 1, 2020.