The Korean government is preparing the taxation of capital gains from the sale of cryptographic equipment. It is expected that as of the tax season in 2020, the appropriate laws are adopted.
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Korea wants to crypto-capital gains tax
Until recently, Korea was one of the most active markets for crypto-speculation. However, there was no direct framework for the taxation of capital gains from the sale of digital assets, such as the Korea Times reported. Now the Ministry of economy and Finance is working on the construction of a measure, to be from next year the tax law.
“There were talks,” said an official of the Ministry of economy. “The revised draft law will be elaborated up to the first half of next year.”
The Korean national Assembly has also been working on a crypto-tax-law. Any act is intended to increase the transparency of all aspects of the crypto-Trading. However, Korea will try with security, capital gains from the sale of digital assets to be taxed.
If the legislation follows win the usual approach to the taxation of capital, you must deliver the Koreans may have a detailed history of your crypto-Trading transactions. Exchanges for virtual currencies must then also separate records for each user, as well as detailed personal information.
Anonymous Trading is no longer possible
Most of the crypto exchanges have procedures in place for a considerable amount of traded Coins on KYC. Korean traders associate their accounts with Bank accounts and trade directly in the South Korean Won. On decentralized exchanges or obscure markets, it is in 2019, almost impossible, to trade anonymously.
The taxation of Bitcoin (BTC) and other digital Coins is contrary to the spirit of crypto-currencies. The sale of virtual Coins generates profits for Fiat, and is considered to be taxable.
However, the idea of a database with transactions and crypto-looks-to owners more after another attempt to control Bitcoin.
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The Korean interest in the crypto-Trading has fallen in 2019, with a lower proportion of Korean Won pairs. Part of the decline comes from the decline in activity on the Altcoin markets. But BTC will remain attractive and well in 2019, one of the main sources for profits.
The Korean Won is currently only 0.84 percent of all BTC Trades, what decreases since the peak times of trading significantly. However, it came in last month to temporary spikes in Trading.
Korea joins a long list of countries that have committed themselves to the persecution of crypto-transactions, and Trading.