The South Korean Parliament passed the bill on Tuesday, November 30, which postpones taxation of cryptocurrencies until January 2023. Earnings exceeding 2.5 million Korean Won (currently $2,103) will be taxed at 20% when the tax begins.
In April 2021, South Korean Finance Minister Hong Nam-ki said that crypto taxation is inevitable and cannot be postponed.
The Chairman of the Tax Subcommittee, Kim Young-jin, thinks that imposing taxation on cryptocurrencies without a precise definition by the government is not the right decision. Kim Young-jin:
We have an inconsistent system of taxation without laws to define cryptocurrencies… But only in Korea taxation comes before regulation.
said.
South Korea has implemented Anti-Money Laundering (AML) regulation, causing many small and medium-sized cryptocurrencies to disappear from the market. The strict KYC (Know your customer) rules they apply prevented any anonymity.