South Korea sticks to plans to tax bitcoin traders from 2022

The government of South Korea fended off an attempt by lawmakers to delay for a year the introduction of a capital gains tax on cryptocurrency trades, according to CoinDesk Korea.

At a meeting, Finance Minister Hong Nam-ki and senior members of the National Assembly from the Democratic Party reached a final agreement that the tax would be introduced as planned.

The Ministry of Economy and Finance determined that the new requirements will come into effect on 1 January 2022. The tax will be 20% of profits above 2.5 million won (~$2,105).

The Democratic Party, which holds a slim majority in parliament, attempted to pass a law to defer the introduction of the tax for one year, arguing that the infrastructure was not yet ready.

The Finance Minister has repeatedly stated that the fiscal rules would come into force in accordance with earlier decisions. Hong Nam-ki is one of the most senior politicians in the country, having previously served as prime minister and in other high offices, the publication notes.

In a meeting with the leadership of the parliamentary faction, the minister stood his ground. As an argument against postponement, he recalled the growth of the cryptocurrency market. He said that where there is income, there are taxes as well, so the question of fairness is very serious.

«There are many countries where the taxation of virtual assets is already in place, so the market will be in a great state of confusion in the event of a postponement,»

As reported in a poll, more than half of South Koreans approved the introduction of the tax on virtual assets.