When it comes to adopting cryptocurrencies in the masses, there is no other country that can match the potential of South Korea. The entire country is known to be hungry for technology, advancements, and innovations. Cryptocurrency is yet another reason for the entire country to start a marathon with the entire world.
Although there are other countries such as Venezuela, Switzerland, and Georgia that are investing heavily in the crypto-sector. Yet, the investments and dedication showed by South Korea outperforms any other country.
Despite taking a huge blow to its economy in the year 2020, due to the pandemic, the country is now trying to make a comeback by injecting fuel into the crypto-sector. Towards the end of the year 2020, a huge announcement was made by the capital of South Korea “Seoul” around cryptocurrencies.
The capital revealed that it was going to initiate a program that would see the crypto-technology being adopted in different sectors. In order to achieve this goal, the capital even dedicated millions of dollars that it would allocate to companies that are aiming to promote crypto-blockchain adoption.
Despite all the adoption and its welcoming attitude towards cryptocurrencies, the country has also ensured that the sector maintains its integrity. When it comes to the regulatory infrastructure in the crypto-sector, South Korea is not at all flexible. Ever since the beginning of the year 2020, the South Korean government has announced several implementations around cryptocurrencies.
The government as well as the regulators have passed several laws and rulings in order to keep the crypto-sector streamlined. One of the major implementations that the cryptocurrency sector will see being implemented by the government of South Korea is around taxes.
It has been confirmed and intimated by the government of South Korea that the tax law for cryptocurrencies will be put in place starting from January 1, 2022. The upcoming law would ensure that the cryptocurrency investors and holders pay 20% tax for the profits they make in Bitcoin (BTC) and other cryptocurrencies.
The above information has been announced by the Ministry of Economy and Finance from South Korea. The report has been shared with the public by one of the local news agencies “Korean Herald” on Monday, February 22, 2021.
According to the ministry, the taxes will be implemented automatically once certain conditions have been met. It has been confirmed that if the annual profits made by the investors from cryptocurrencies exceed the 2.5 million won benchmark, then the person will be required to pay taxes.
However, if the annual profits made by the investors are equal to or below the 2.5 million won benchmark, then the investor will be exempted from paying tax on the profits. At the time of publishing, the 2.5 million won figure translates to $2,300.