South Korea moving closer to its crypto tax collection efforts

The Officials of South Korea plans to add the crypto industry to the annual household finances report. 

South Korea is a crypto and blockchain-friendly country. Rules and regulations by the Korean government on the crypto industry are very strict. Under current struct regulation, there are only 4 exchanges namely Bithumb, Coinone, Korbit & Upbit, which are giving their full crypto-fiat services in South Korea. The main reason for such restrictions is an effort of the government of South Korea to kick out illicit activities and to easily impose traditional rules on the crypto industry. 

In the latest, the South Korean statistics bureau, (National Statistical Office of South Korea), announced that it will add the Crypto industry in the annual household finances report. 

Agency stated that current efforts with such works for this industry are aimed to bring more ease for the government to impose and collect taxes from this industry, which are starting by the next year 2023. 

This initiative of government authorities of Korea will help to track household finances jointly with the Bank of Korea and the Financial Supervisory Service. And further, this data will help the government agencies to bring better tax rules as per the situation. 

The National Statistical Office of South Korea stated that they are not sure how to categorize cryptocurrencies, whether in assets or not. So there is a type of confusion in the agencies, whether the crypto industry-based crypto-asset will go under which one of stocks, bonds, and real estate. 

“Once we start this year’s investigation and accumulate data if there is an international agreement on which assets should be included in virtual assets.”

The upcoming crypto tax measures of South Korea were planned to be introduced at the beginning of this year but due to some political pressure and some concerns, the government shifted the plan to 2023. 

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