Crypto traders evading tax to face severe consequences in South Korea soon

From the start of 2022 all the profits above 2100 earned by the crypto traders should also be reported as theyll be taxable.
From the start of 2022 all the profits above 2100 earned by the crypto traders should also be reported as theyll be taxable.

Crypto traders in South Korea are suffering from severe regulations these days.

From having just four exchange options to choose from, crypto traders are now warned that if they ignore the protocols released by the government related to crypto trading, they might face serious consequences.

Such South Korean residents could face crypto coin liquidation or even find bailiffs in their houses for searching operations.

Crypto traders will have to pay taxes starting 2022

Right now, crypto traders are not taxable in the country. But from the start of 2022, all the profits above $2,100 earned by the crypto traders should also be reported. The investors will have to pay 20% of their profit earnings to the government.

Along with that, the National Tax Service (NTS) is also searching for people trading in cryptocurrency. This is because they want to avoid paying taxes for their income. The local branches of NTS are active, and this action has resulted in millions of dollars worth of crypto seized.

In many cases, these are liquidated by the NTS, demanding the due tax amount and fines in various cases.

The government has also raised voices to amend the National Tax Collection Act in the National Assembly. It is expected that the act amendment will bring more strict regulations and be approved by the Parliament soon, which will also be even more painful for the investors.

Current regulations

Currently, the officials only have the authority to seize a crypto asset from notorious elements, but the new powers through the amendments will allow them to do whatever it takes to get the tax, like searching the houses, if needed. It will also let officials convert any illegal crypto holding to fiat Korean Won.

Amidst this situation in South Korea, MPs in Ukraine said that they might also bring regulations to apply taxes on crypto profits, around 6.5% for traders and 5% for companies.

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