South Korea, as we learned this week, is looking to introduce a tax on income earned through cryptocurrency trading. However, the national police also launched a leak investigation into the case. The thing is, social media users and bloggers unveiled the details of the changes before they were officially announced a few days ago.
South Korea is looking for the culprits for the leak
According to Kyunghyang Shinmun, the first article containing information that was leaked from the country’s ruling camp was posted on a country-related page. The link to it quickly spread through social networks and cryptocurrency profiles. Then other media started writing about the case.
The Metropolitan Investigation Team of the Sejong District Police is investigating who revealed all the details of the Seoul plan. This is not the first time that the country’s authorities have dealt with a leak of new legal regulations related to cryptocurrencies.
In 2017-2018, local media published a series of articles with details on the BTC market regulation plans in South Korea. Police found out that officials from the Korean Customs Service and communications managers from the Prime Minister’s Office were involved in the leak.
What’s next for taxation?
After the last meeting of the Tax Development Review Committee, which was held exactly on July 22, the Ministry of Economy and Finance published a revised tax code detailing the new regulations.
The act contains a proposal to set a tax of 20%. on the earnings of people trading cryptocurrencies. However, the tribute will only be charged if your income exceeds $ 2,100 during the tax year.
Under the new planned law, traders whose earnings do not exceed $ 2,100 would not have to pay income tax. Other proposed changes include classifying cryptocurrencies as “Goods” not currencies.
If parliament approves the measures, they will enter into force in October 2021.
Today, as officials confirm, the problem is that cryptocurrency investors do not pay tax. The problem also affects residents in South Korea. or companies that trade on national digital asset exchanges.