South Korea pushes back cryptocurrency tax until 2023

South Korea’s Ministry of Economy and Finance said on Tuesday, November 30, that the country’s National Assembly passed a bill that will delay the taxation of capital gains from cryptocurrency trading until 2023, Reuters reported.

After the bill is approved in the plenary session, which is expected to be held on Thursday (December 2), South Korea will begin imposing a 20% capital gains tax on amounts greater than 2, $ 5 million from cryptocurrency trading as of January 2023, according to the report.

The decision to defer capital gains tax until January 2023 comes a little over a month before tax was due to start in January 2022.

South Korean cryptocurrency exchanges had to register with the country’s Financial Intelligence Unit (FIU) at the end of September or had to inform their clients that they were planning to partially or completely shut down if they could not meet the requirements. new regulations.

Read more: Dozens of South Korean crypto exchanges could close next week

South Korean crypto exchanges have also been asked to provide a security certificate from the Internet Security Agency and partner with banks to ensure that all accounts on their platforms use real names in addition to registration. of the CRF. Exchanges registered but not having a banking partnership could not trade won until they complied with the new rules.

About 40 of South Korea’s crypto exchanges opted for a complete shutdown, while another 28 had their security certificates by the deadline but failed to secure banking partnerships on time. It is not known how many of them have since completed both stages and were able to reactivate.

Four of the country’s exchanges – Upbit, Bithumb, Coinone and Korbit – have registered with the CRF and have banking partnerships, which means they can offer optional earnings on their platforms. ProBit, Cashierest and Flybit have said they will not offer won on their exchanges until they enter into banking partnerships.

South Korea’s Financial Services Commission regulatory agency’s decision to tighten crypto exchange rules could cost traders $ 2.6 billion or more.

See more : South Korean crypto traders expect new market rules to lead to losses of $ 2.6 billion

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