As an experienced analyst following the crypto market in South Korea, I share the concerns of the local community regarding the upcoming 20% tax on crypto gains. The proposed rate is significantly higher than that for traditional financial investment income and could potentially drive investors away from the market. The tax’s implementation has been delayed several times but is now scheduled for 2025, yet domestic exchanges argue that trading volumes will drop once it takes effect due to its disparity with other investment taxes.
The cryptocurrency sector in South Korea expresses concern that the upcoming 20% tax on crypto profits may deter investors and negatively impact the market.
As a researcher studying the cryptocurrency market in South Korea, I’ve noticed that there’s growing unease within the community regarding the upcoming 20% tax on crypto gains. The proposed tax rate, which includes a 20% national tax on any winnings exceeding 2.5 million won (approximately $1,800), coupled with an additional 2% local income tax, has raised concerns among investors. They fear this controversial tax may drive them out of the market due to its potential financial burden.
As a tax analyst, I’ve noticed that the implementation of the crypto tax, originally slated for 2021, has undergone several postponements and is now set for 2025. Domestic cryptocurrency exchanges such as Upbit, Bithumb, and Coinone have raised concerns about this development. They predict a substantial decline in trading volumes once the tax takes effect due to a significant disparity in financial investment income taxation.
As an analyst, I’d rephrase the given text as follows: Starting from the 19th of this month, South Korea will enforce the Virtual Asset User Protection Act. This legislation grants financial authorities the power to assess the suitability of cryptocurrencies currently in circulation. An unidentified representative from a cryptocurrency exchange shared their concerns with the Chosun Daily, stating that the proposed 20% tax may discourage investors. They further forecasted that several exchanges might be forced to close down next year due to this tax if it is implemented as planned.
Further reporting by crypto.news indicated that South Korea’s financial authority is implementing a new monitoring system for unconventional cryptocurrency transactions. Exchanges are being encouraged to share internal data as part of this initiative. The system, designed to flag trades exceeding typical volumes and prices, substantial transactions, and delayed executions, may pose considerable hurdles for altcoins struggling to adhere to regulatory requirements, according to Matt Younghoon Mok, senior attorney and partner at Lee & Ko in Seoul.
Read More
Sorry. No data so far.
2024-07-12 14:45