South Korean government may impose 20% tax on crypto income. Ministry of Economy and Finance had ordered its income office to review cryptocurrency taxation, according to English-language news outlet The Korea Times on Jan. 20.
News of the proposed rate follows reports earlier this month that South Korea is drafting a tax regime for profits made from trading cryptocurrencies.
A clear outline for cryptocurrency taxation is much needed in South Korea. As a reminder, back in December, major local cryptocurrency exchange Bithumb announced that it was considering administrative litigation over an $68.9 million tax bill that it believes has no legal basis. More recent reports indicate that the firm decided to follow through and take tax authorities to court.