South Korean Cryptocurrency Users Will Be Taxed From 2021 Onward

South Korean Government Advisory Committee Recommends Bitcoin Derivatives Clearance
South Korean Government Advisory Committee Recommends Bitcoin Derivatives Clearance

Cryptocurrency users in South Korea will be taxed from 2021 onward, according to an article from CoinJournal.

This tax will be based on mining profits and sales of cryptocurrency, the document notes. And, of course, the policy will be put in place by the Korean tax agency. It will be amended to the Income Tax Act, and these taxes will be mandatory from next year onward.

Speaking on the matter is an official from the Ministry of Economy, who had said:

“We are looking into ways to impose capital gains tax or other forms of income tax on the profits earned by both domestic and foreign investors using cryptocurrencies.”

As of now, citizens in the country do not pay taxes on their cryptocurrency income. This was considered for implementation all the way back in 2017, but did not end up going through.

Any changes have to be finalized by July, and will be submitted by September.

South Korea is getting involved in blockchain as well. The country recently announced they would be putting together a blockchain-based university.

It will be considered a “smart campus,” as InsideBitcoins has previously reported on, and is intended to create a vast new group of users interested in the industry.

Remember, all trading carries risk. Past performance is no guarantee of future results.

Cryptocurrency and games writer. Looking to the future by studying how these two industries can blend.