HomeBlockchainSouth Korean government will thoroughly examine cryptocurrency tax law.

South Korean government will thoroughly examine cryptocurrency tax law.

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The South Korean government is thinking about whether they should tax people who make money from trading cryptocurrency. They are going to look at this issue very carefully.

As of now, traders will have to pay taxes on the money they make starting in January 2025.

According to News1, the government will reconsider its position on taxing profits from trading cryptocurrency. This comes after a recent choice to remove taxes on investing in gold.

The government wants to help the investment markets grow. However, it could also go back to previous commitments to strengthen the crypto industry.

During a meeting with reporters, Jeong Jeong-hoon, the boss of the Tax Department at the Ministry of Strategy and Finance, was asked if the government still planned to start taxing money made from selling cryptocurrencies. Jeong answered:

“The government needs to talk about how to tax cryptocurrencies in the National Assembly, now that they have gotten rid of the tax on investing in gold.”

People who buy and sell cryptocurrency think it’s not right that they have to pay taxes on their profits, while people who trade gold don’t have to pay taxes.

The government will probably listen to what the public thinks about this issue, according to the news.

‘Complete Review’ – Could South Koreans be able to trade cryptocurrency without paying taxes?

But, the decision-makers will probably have the final say on taxes for cryptocurrencies.

Many lawmakers may be unsure about passing laws that support cryptocurrency because of the ongoing Coin Gate scandal in South Korean politics.

Last year, a member of parliament on a committee about crypto rules supposedly sold coins after getting secret information about a coming legal change.

Jeong said that Seoul wants to quickly pass the gold tax law. A bill should be ready for the Assembly by late January or early February.

The tax boss said that if we can, the bill could move to the house before the election.

South Korea has its legislative elections in April. The Democratic Party has more than 50% of the seats in the chamber.

Taxing cryptocurrency has been a difficult and ongoing problem for the government.

In 2021, there were heated arguments in the chamber about crypto taxes. Government ministers and their party members argued with each other about the fair way to tax crypto.

More debate is happening about the current law, which is set to start on January 1, 2025.

The current law says that anyone who makes over $2,100 a year from crypto earnings or trading will have to pay a 20% tax on that money.

Before he was elected in 2021, President Yoon Suk-yeol said he would increase the limit for KOSPI traders to about $41,000 per year.

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