The Ministry of Finance And Strategy in South Korea recently announced that the current tax laws will not apply to cryptocurrency. Income that is generated through cryptocurrency will not be taxed. The Liberal Party in Korea is currently controlling the ministry. They have stated that the regulations regarding cryptocurrency need to be relaxed.
According to bitcoin.com, the ministry has confirmed that people who have made income through crypto trading will not be obligated to pay any taxes. They have also stated that they do not consider crypto trading profit to be taxable income. People in the crypto community are thrilled about this new law.
However, even though the current tax law does not require people to list crypto earnings as income, many are wondering whether this law will change in 2020. Ministry officials realize that there are many problems associated with this new law. There are also people who believe that the ministry is working to make amendments to the law.
Minister Kyoil Choi has stated that the cryptocurrency industry needs to be incorporated into the institutional sphere so that people can be transparent about the transactions that are made. Authorities have stated that cryptocurrencies have been used for money laundering.
Even though this new law will exempt cryptocurrency, Bithumb reportedly owes over $70 million in taxes. This tax situation does not have an easy solution. According to the new law, Bithumb should not have to pay any taxes at all. That is why authorities want to require people to pay crypto taxes in the future.
Ukraine recently introduced a bill that will require people to pay crypto taxes. Many countries are trying to follow in Ukraine’s footsteps. More places will focus on taxing crypto income in 2020. There will be more focus on taxing crypto than regulating it. This will make it even harder for the crypto sector to generate a profit.
