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December 3, 2021
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Bitcoin

South Korea creates confusion in cryptocurrency tax ads

Several South Korean officials have made announcements about the issue; however, not all of them agree with reality.

South Korean government officials have published different announcements regarding the taxation of cryptoactives. The announcements concern possible changes to the tax, which are expected to start next year.

Throughout 2021, debates on the topic were frequent within the Korean National Assembly. Under current legislation, it is mandatory to pay 20% of gains on cryptocurrency transactions in transactions with a monetary volume greater than 2.5 million won, equivalent to US$ 2,100.

Non-fungible tokens (NFTs) are in a kind of regulatory “limbo” within the country, being one of the main themes to be addressed before the new measures, in 2022.

Comunication error

Officials from the Financial Services Commission (FSC, in free translation) made it clear that NFTs would not be taxed under the new legislation, as non-fungible tokens, according to the entity, differ from cryptocurrencies.

However, Do Gyu-sang, vice president of the organization, denied the officers’ allegations:

“The Ministry of Strategy and Finance is preparing provisions for NFTs under the Special Reporting Act.”

Some individuals believe that the government’s intentions on cryptocurrencies are nebulous, given that official opinions on the subject tend to change quite often.

misinformation

In addition to the frequent changes in taxation, the South Korean press has collaborated to cause even more confusion. O portal Korean Times wrongly published that the taxation would be postponed – information denied by the FSC.

Although the entity admits the existence of internal conflicts on the subject, it remains for the legislators to give the final answer.

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