South Korea announces a crypto tax bill
According to Business Magnate, South Korea’s Hong Nam-ki has reportedly announced plans to create a cryptocurrency tax, which should continue to cement South Korea's place as a leading figure in international blockchain adoption.
The idea to tax cryptocurrency has been floated around since the beginning of crypto’s mainstream use, and South Korea has been at the forefront of creating a legal infrastructure for dealing with digital currencies, so unsurprisingly they appear to be among the first to publicly put forward solidifying plans of taxing crypto-related income.
Hong told media, that officials ‘are preparing taxation plans by reviewing cases of foreign taxation through a task force, composed of relevant [governmental departments] and private experts, for proper taxation on virtual currencies,’ but at a G20 summit officials have already noted the difficulties in taxing cryptocurrencies when statutes already forbid governments from taxing foreign incomes.
SOuth Korea’s announcement follows similar developments in Spain, where crypto gains must be disclosed and taxed as income, and a recent decision in Ohio which allows taxes to be paid in crypto. While the taxation of crypto is somewhat anathema to crypto’s early proponents and quite contrary to its reputation as an extra governmental currency, these developments show how mainstream crypto is becoming and might be an optimistic sign for investors.