The country’s crypto tax rules that had been previously proposed have been accepted and will go into effect in 2022. As of now, non-fungible tokens (NFTs) are not included under the tax.
South Korea’s Deputy Prime Minister and Finance Minister, Hong Kam-ki, announced that the nation’s cryptocurrency tax rules will be enforced starting in January. Under the new regulations, South Korea will tax personal crypto income 20% if the total income is more than 2.5 million won or $2,100. In the process of confirming the new tax mandate, the Ministry of Economy and Finance has, in essence, also announced the rejection of a petition to delay crypto taxes until more research can be conducted. Hong Kam-ki added that the South Korean cryptocurrency market has exploded in size and now rivals the nation’s stock market, ergo, the time for taxation is now.
In order to best track and tax cryptocurrency in South Korea, the Financial Services Commission decided that all cryptocurrency exchanges would be required to register with the government and report transactions as requested. Meanwhile, dozens of exchanges have closed up shop in recent weeks, with just four completing the registration process.