South Korea News: Another news came from South Korea that will upset the crypto money market. According to the report, the South Korean Ministry of Commerce has discussed the decision to tax overseas crypto assets from next year. If the draft text on the table comes true, it does not bode well for crypto investors. After the statements made by China, South Korea’s negative attitude towards digital currency investments brings to mind the domino effect.
The Tax Council of South Korea’s Ministry of Commerce announced yesterday that Korean customers with accounts on foreign crypto exchanges may be required to declare their assets for tax purposes from 2022.
Details on cryptocurrency law
A Korean citizen will be required to pay taxes if the total amount of account balances in overseas virtual asset businesses exceeds 500 million won or $447,900 at the end of each month. The new tax rule for overseas virtual assets will apply to digital currency assets from January 1, 2022, and tax reporting will be mandatory from June 2023.
Violators of digital currency tax obligations will be fined 10-20% of the amount not reported or under-reported. If the under-declared amount exceeds 5 billion won or $4.47 million, the tax evader will be penalized.