South Korean crypto legislation offers 20% crypto capital gains tax

The recently presented in South Korea draft law on crypto taxation offered 20% tax for capital gains got from crypto trading. The proposed exorbitant fees roiled the country

South Korean crypto sector was shocked by the new tax rule

The draft law being discussed by the members of South Korean private sector aims to tax capital gains received from crypto operations. In case the law is accepted, the country’s crypto tax will be the highest in the world.

The proposed legislation classifies crypto assets as “goods” and intends to tax them with a 20% cess. Technically, local authorities has identified digital assets as electronic certificates which possess financial value and are subject to e-trading. After selling is completed, a concrete deal gets under regulation of asset, and therefore, is accountable to the capital gains regulation.

Such an aggressive tax policy may raise concerns among the members of trading community. And this will negate all the loyalty of the legal field towards crypto industry.