Cryptocurrency transactions are still not taxed in South Korea due to the lack of appropriate regulation. By law, citizens can profit in millions of won from trading digital currencies and not pay any taxes. However, regulators have established a tentative time frame for the creation of a law that would force all traders and exchanges to pay taxes on the income derived from trading digital assets.
As reported by Money Today, the tax authorities of the country decided to develop a «standard taxation of the virtual currency to the first session of the National Committee on tax administrative reform in 2018». In addition, the Ministry of strategy and Finance identified the need to develop rules on the taxation of cryptocurrencies in the first half of this year.
Recently local media reported that «the bill of the taxation of cryptocurrencies will be published in June 2018.» However, the Ministry of strategy and Finance later issued a statement, noting that the message «not true». Official representative of the Ministry confirmed:
«We have not set a specific deadline, but we plan to introduce the bill in the first half of 2018.»
Cryptocurrency exchanges will also have to pay taxes. Official representative of the Ministry announced earlier this year that his Department «has yet to determine the exact tax rate. We are negotiating on this issue with the National tax service».
Recently, the authorities have banned anonymous cryptocurrency trading. In addition, there have been reports indicating that regulators in South Korea could reconsider its ban on initial placement of tokens, which they took after China last fall. In addition, in February this year, the head of the financial Supervisory Service of the country announced that the government «will support cryptocurrency trading when making legal transactions.»