November 24, 2021

South Korean Crypto Investors ‘Fiber’!

 The South Korean government has sparked confusion over the amendment or repeal of the crypto tax that will take effect in 2022.

It is said the National Assembly, the South Korean legislature has not yet decided to amend the crypto tax. More precisely, they still do not know how to make amendments to the crypto tax to the point of inviting the confusion of crypto investors in the country.

For the record, the current crypto tax has been set at 20% for each transaction exceeding 2.5 million won (RM8.8 million).

But, the emergence of non-fungible tokens (NFT) has caused the crypto tax amendment to be an issue of debate in the Senate.

The results are caca marba

November 5 - The Financial Services Commission (FSC) has set NFTs exempt from tax payments.

The ruling is based on guidelines by the Financial Action Task Force (FATF) which does not classify NFTs as crypto assets.

November 23-FSC deputy chairman Do Gyu-sang abruptly announces the introduction of a crypto tax on NFTs under the Special Reporting Act.

The introduction of the crypto tax is being compiled and finalized by the Ministry of Finance and Strategy.

Since April 2021, several tax deferral proposals have been submitted by the Democratic Party to the attention of the National Assembly. The Minister of Finance at the time strongly opposed the cancellation of the idea.

Then the same thing happened again in September, and is expected to happen again before the end of 2021.

Contradictions in politics have given rise to an element of misunderstanding as the mass media space claims the introduction of the crypto tax has been delayed, while the truth remains vague with no final word.

Anyway, crypto investors in South Korea are preparing for a new crypto tax decision by the Ministry of Finance and Strategy.