S. Korean gov’t decides to impose tax on cryptocurrency gains

The South Korean government will tax gains from cryptocurrency trading after years of discussion on introducing taxation plans for the virtual asset that yet remains in a grey area despite fast growth.

According to the Ministry of Economy and Finance on Sunday, the government will amend the country’s income tax law next year to tax capital gains from virtual asset transactions such as from bitcoins and ethereum. The ministry is currently working on taxation grounds for virtual assets with an aim to revise tax bill next year.

In a separate move, the National Assembly’s state affairs committee last month approved a revised bill on reporting and utilizing specific financial transaction information that is designed to enhance transparency in virtual asset trading. In the revised bill, crypto currency is classified as a virtual asset, paving the way to tax on gains from its trading. The revised bill has to be approved at the regular session and legislation and judiciary committee,…