Kementerian Keuangan Korea Selatan Mengancam Cryptocurrency
Korean Ministry of Finance said that next year, digital currencies can't avoid taxation. In 2022, South Korea intends to introduce a capital gains tax on actions related to digital currencies.
This was stated by the head of the ministry Hon Nam-ki during a press conference held today. Earlier, the minister has already noted that taxes will be introduced in January 2022, and from that moment on, the annual profit received from operations involving cryptocurrencies, the amount of which will exceed 2.5 million won (about 2,250), will be taxed at 20%. Hon himself called digital currencies "intangible assets" and said that it would be incorrect to characterize them as currencies. In addition, he advised investors to be vigilant, arguing that the increased number of fraud cases in the crypto industry.
In recent months, the crypto industry has been suffering from the actions of local regulators. So, for example, on March 25, a new financial reporting mechanism began to work for all businesses related to digital currencies. Failure to comply with the rules may result in a large fine of more than 40,000 or imprisonment for 5 years. Korean banks are also worried about cryptocurrency transactions and speculation around them, so regulators, together with the Korean Financial Supervision Service, announced tougher rules for transactions involving digital currencies. As for the FSC organization, last week its representatives were obliged to submit reports on their own investment crypto portfolios in order to improve control over money laundering in digital currency equivalent.
In the meantime, employees of many Korean enterprises began to devote much more time not to work, but to tracking market charts. According to one of the representatives of the IT sphere, this was the reason for the increase in the salaries of "IT specialists", since many people accumulate a certain amount for investment in cryptocurrencies and simply leave their positions.
If this continues, regulators will likely begin to impose more and more financial "sanctions" on Bitcoin and other coins. But would it help to stop the local “cryptocurrency rush”?