Sirlibz
The government of South Korea has decided to apply Capital gains taxation to cryptocurrency trading starting next year. After much deliberations on how best to tax cryptocurrencies whether as transferable income which exists between stocks and real estate or any other income in the case of interest, dividends and lottery winnings, they finally decided to follow a scheme adopted by the United states which is Capital gain tax.
The government of Korea has been considering this taxation since 2018. They even had to set up a Joint Task Force (TF) immediately after the last bull market in 2017.
Some have argued that cryptocurrencies shouldn’t be categorized under the capital gains taxation but rather propose a lower transaction tax. They believe it will be more advantageous adding it to income tax, this is due to the fact it is very difficult to accurately calculate profits and losses between the time of purchase and the time of liquidations in cryptocurrency trading.
‘it looks like from next year we will see larger institutions being able to actually engage in cryptocurrency activities legally’’- stated a local investor who thinks the taxation move is a further step into legitimizing the cryptocurrency industry.
