The tax organization in South Korea, National Tax Service (NTS), caught 2,416 taxpayers evading taxation by hiding their assets or income in cryptocurrency. According to Yonhap News Agency, individuals hid over 36 billion won (over $32 million). In particular, they hid the funds in crypto assets such as Bitcoin and altcoins.
The country’s government is planning to implement a 20% tax on profits in cryptocurrency, reports Cointelegraph.com. The tax will apply to holding and trading virtual assets, as well as receiving them as gifts or inheritance. It only concerns profits of over 2.5 million won (about $2,300), with smaller gains being exempt from taxation on cryptocurrency.
Most recently, the government has also introduced new measures to enforce compliance of crypto exchanges with anti-money laundering regulations in the country. According to Coingeek.com, these measures from the Financial Services Commission will apply starting from April 20 this year. In particular, the exchanges could incur fines in the event they do not comply with the regulations.
Interest in virtual currencies has grown among traders in South Korea. News.Bitcoin.com, citing newspaper Dong-A, reports daily transactions of around $7 billion on local crypto exchanges between January 1 and February 25, 2021. According to the source, the figures for the four exchanges included are higher than in the same period in 2020.
