Crypto Capital Gains Tax in South Korea Sees Majority Support
A recent poll shows that most South Koreans support capital gains taxation of crypto, which is due to roll out next year.
Local media outlet, Yonhap News Agency, reported that over 53% of South Koreans support the taxation of cryptocurrencies.
The survey was conducted by Realmeter and commissioned by the news channel YTN. It surveyed 500 individuals over 18 years of age about taxation. South Korea is a tech-savvy nation, and young investors have been zealously taking to cryptocurrencies.
60% of women agreed on the proposed taxation ruling, while only 47.3% of men supported it. Younger individuals (those under 30) also tended to oppose taxation. Many in their 30s, 40s, and 50s were largely supportive of taxation.
The South Korean government plans to implement the new cryptocurrency taxation rules next year. It recently released the taxation guidelines and is also ensuring its regulators are not falling foul by trading crypto.
The taxation rule calls for a 20% capital gains tax on transactions. This will apply to transactions that are greater than 50 million won (~$45,000). However, there is a growing chorus of individuals who are asking that the same taxation rules of the stock market be applied to crypto.
Finance minister Hong Nam-ki said of the taxation plan,
“When capital gains are generated from transactions of virtual assets, we cannot help imposing the tax to promote taxation equality.”
South Korea taking steps to form complete crypto regulation
Generally speaking, South Korea has been ramping up its efforts to form comprehensive regulations for the crypto asset class. Most notably, it banned privacy coins this yea —a particularly painful thorn for regulators around the world.
South Korean authorities are also working on a central bank digital currency (CBDC), though it likely won’t see an official launch for some time. The government acknowledges the potential of blockchain technology and cryptocurrencies but is attempting to prevent any illicit activity from occurring.
The CBDC, notably, is part of a ten-year strategy to boost the country’s economy. Other developments include a crackdown on exchanges, which even led to the well-known exchange OKEx to shutter in the country.