South Korea’s 20% Tax on Crypto Gains Will Take Effect in 2022: Report

South Korean Finance Minister and Deputy Prime Minister Hong Nam-ki said his country is moving ahead with its plan to tax gains on cryptocurrency trading starting in 2022, according to a report in The Korea Times.

The policy, which will levy a 20% tax on crypto gains of over 2.5 million won (US$2,125) made in a one-year period, was originally supposed to go into effect on Oct. 1, but was delayed due to a lack of taxation infrastructure.A previous proposal in September by the ruling Democratic Party of South Korea to delay the taxation policy until 2023 was abandoned, CoinDesk Korea reported.“Any further delay in the already postponed enforcement will lead to the loss of public trust in government policy and undermine stability in the legal system,” Hong said at a parliamentary audit of the Ministry of Economy and Finance in Seoul on Wednesday, according to the report.NFTs appear to be exempt from the crypto taxes for now, however, because South Korea does not currently classify them as “virtual assets.”Meanwhile, crypto exchanges in South Korea were required to register with local authorities by Sept. 24 or else suspend operations.

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