Earlier this year, South Korea’s Ministry of Economy and Finance announced that after January 1, 2022, a 20% tax will be levied on investors earning more than 2.5 million won per year from cryptocurrency trading.
While full consensus between regulators and investors has not been reached in South Korea, investors are asking for a deferral of taxation on cryptocurrency trading.
However, in the recent government meeting, it was stated that there was no question of delaying taxation and making any changes, on the contrary, it would continue as planned.
After these developments, some investors started to send petitions to the Presidency Blue House.
If more than 200,000 signatures are collected on these petitions within 30 days, the government is obliged to inform the public about this issue. Currently, there are 2 petitions related to the subject and more than 19,000 signatures have been collected for one of them.
There are two issues requested in the petitions: Postponement of taxation and fair taxation.
Crypto investors say the earnings threshold of 2.5 million won in cryptocurrency taxation is unfair, while earnings of more than 50 million won will be taxed in the country’s stock taxation starting in 2023.
Hong Ki-yong, a professor at Incheon National University in South Korea, stated that income taxation on virtual asset investments should be made as soon as possible, but virtual asset gains and stock earnings should be in the same category.
On the other hand, some experts in the country say that it is not possible to monitor the gains from the transactions unless the crypto transaction parties declare it, and in this context, there are gaps in the taxation of cryptocurrency revenues.