South Korea’s National Assembly proposed a delay in the crypto tax rule to push the implementation to January 2022. The rule was originally planned to come into force by October 2021.
November 25, 2020 | AtoZ Markets – The South Korean congress is reportedly proposing to delay the commencement of a crypto income tax rule.
According to a report published by South Korean media the DONG-A ILBO, the National Assembly’s planning, and finance committee plan to implement the crypto income tax rule from at least January 1, 2022. This is against the background of voices from cryptocurrency exchange operators and others that there is not enough time to prepare the tax filing infrastructure.
South Korea crypto income tax rule Until 2022 originally planned for October 2021
The original plan was that the revised tax law would come into effect on October 1, 2021, with the approval of the Diet, but we will consider postponing it until 2022.
The Korean tax system says that if you earn 2.5 million Korean won or about $2,000 a year from trading virtual currencies, you will be charged a 20% tax on people living in South Korea.
In South Korea, the “Specified Financial Information Law (Act on Reporting and Use of Specific Financial Transaction Information)” will come into effect in March 2021. By September of the same year, exchanges will be required to enforce Know Your Customer (KYC) legislation.
This means that will have to register their accounts and verify the identity of individuals using their service. KYC regulations make concealing the origins of illegally obtained money more difficult for criminals.
Regarding domestic businesses, Huobi, a major Chinese cryptocurrency exchange is considering the acquisition of Exchange bitFlyer and South Korea leading Exchange Bithumb.
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