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The South Korean government is considering a 20% income tax for cryptocurrency transactions.
According to a 20th January report in the The Korea Times, the South Korean Ministry of Economy and Finance is mulling the idea of imposing a 20% tax on income from crypto trades. Though the anonymous source cited claimed no plans had been finalised at this point.
The news follows reports earlier this month that the South Korean Presidential Committee on the Fourth Industrial Revolution (PCFIR) has recommended the government pass legislation to allow financial institutions to offer crypto-based financial products like Bitcoin (BTC) derivatives.
It is not known whether South Korea will class crypto trading income as capital gains or other income. Though there is widespread agreement that the country needs to clarify its stance on cryptocurrency taxation, to avoid legal battles like that shaping up between Korea-based exchange Bithumb and the tax authorities, high tax will clearly make the country less attractive for the very easily relocatable crypto firms.