South Korea May Classify Crypto As Goods, Not Currencies; Tacking On A 20% Capital Gains Tax

South Korea aims at introducing a capital gain on crypto assets that could be as high as 20% as the National Assembly looks at virtual assets as goods rather than currency.

In a local report by Newsway, the National Assembly proposed a bill to impose taxes on cryptocurrency assets including a 20% capital gains tax on the transfer of virtual assets. Following the tabling of the bill, the representatives in the N.A. are expected to start digging into the economic prospects and value that these digital assets hold.

The bill, proposed by Democratic Party rep, Yang Kyung-sook, aims at recognizing virtual assets as goods rather than currencies hence the implications of the tax. The lawmakers term virtual assets as “electronic certificates of economic value that can be traded or transferred electronically”.

Bitcoin as a property value

In 2019, a South Korean court judged that Bitcoin (BTC) and crypto-assets of similar stature holds a “property value” as investors increasingly use them as goods rather than currencies. The judgment read,

“Considering various conditions, such as the recognition of intangible assets with property value, the necessity of taxation and the recognition of the property value of virtual assets are being raised at the same time.”

Taxation of crypto assets is already active in other states such as Japan and the United States.

A blooming revenue market for South Korea

Taxing crypto assets is expected to increase the country’s revenue substantially. According to the Financial Services Commission in South Korea, over 1.5 billion trades have been conducted on the top exchanges in the country since January 2015 with an average daily transaction amount of 1.93 billion won ($1.57 billion).

So far since 2015, over $1.7 trillion dollars has been transacted in South Korean exchanges such as Bithumb, Upbit, Corbit, and CoinOne.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,470FansLike
2,795FollowersFollow
4,233FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Second Half of 3-Yr Bull Market: Ether’s Crazy Run has 90% of its Supply in Profit

This past weekend, the price of Ether went past $400 to as high as about $420, a level last seen in July 2018. This...

Teenage Mastermind Behind the Twitter Hack Owns $3.39 Million in Bitcoin (300 BTC); Bail Set At $725k

The 17-year old Twitter-hack mastermind holds over $3 million in BTC value with only $725,000 set for bail. In a bizarre moment last month, Twitter...

Bitcoin (BTC) Jumped to $100,000 on Binance Futures

There have been several predictions that see Bitcoin hitting a six-digit figure. On Sunday, this became a reality, very briefly, thanks to an algorithm. Bitcoin...

Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum's blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance,...

Bitcoin’s Wild Weekend Reminiscent of 2017 Bull Rally, ‘Higher Highs Ahead in 2020'

This past weekend, bitcoin had a rough time as the largest cryptocurrency made its way past $12,000 to $12,112 in trading just after midnight...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today