Taxes are one of the topics that cryptocurrency investors closely follow. With the growing interest of investors, many countries are looking for ways to tax profits in the cryptocurrency sector.
While some countries prefer the reporting method on taxes, some countries want to tax transactions directly. In Turkey, a new law on cryptocurrency taxes is expected to be prepared.
South Korea is moving faster than other countries on cryptocurrency regulations. After legal regulations in the country, after January 1, 2022, a 20% tax was expected to be levied on earnings in excess of 2.5 million won. Investors would pay taxes from this date, although the taxes would be collected after January 2023.
However, plans for 2021 could not be realized. The ruling party’s spokesman said today in a statement that the taxation of virtual assets will be delayed.
The ruling party also proposed some modifications to this law. It was indicated that the new bill will hit the agenda later than October. The law, which is expected to take effect on January 1, is expected to be suspended.
In the government spokesperson statements, it was stated that the taxation of crypto money markets is not easy, and there are very complicated areas such as decentralized systems, transactions carried out on exchanges abroad and transfers between peers.
South Korea’s efforts to create a framework that covers all the functions of cryptocurrencies, without being too easy on taxes and showing a prohibitive attitude, were welcomed.