The National Bureau of Statistics in South Korea has announced that it will add cryptocurrencies to its annual household finance report. This data will help to tax cryptocurrencies from 2023.
Local media announced this news on January 23, relaying that the National Bureau of Statistics is making this change to track household finances in conjunction with the Bank of Korea and Financial Monitoring Service.
The agency needs this information to make better decisions related to taxes. South Korea has not yet imposed taxes on this asset class, but is on track. In the initial phase, 20,000 households will be surveyed and the data will not be made public.
The Bureau of National Statistics says it has yet to determine the status of cryptocurrencies as assets, i.e. whether they should be classified on par with financial assets such as stocks, bonds and real estate.
Im Kyung-eun, head of the social statistics department at the National Bureau of Statistics, said:
“We expect that as we conduct this year’s survey and collect data we will get an international consensus on what assets to classify as virtual assets.”
South Korea has been debating the implementation of a tax on crypto for years. Whether any tax will be implemented, how and when is still unagreed upon. Discussions are dragging on, leaving decisions on tax legislation delayed until 2023.
South Korea’s regulatory progress
South Korea is the most active country when it comes to regulation. The government has taken various measures to enter the market, which have mostly met their objectives.
The biggest change in recent years is that exchanges must be licensed to operate. The result of this decision was the closure of several exchanges. Moreover, in 2021 the government banned private coins like Monero and Zcash.
However, overall activity and crypto volumes remain very strong. Banks are reporting a 100% increase in cryptocurrency transaction fees in the second quarter of 2021. Taxation will bring relief to many investors who prefer regulatory clarity above all else – and the capital gains tax on cryptocurrencies has gained the support of most citizens.
26/01/2022 Mr.Advice TEAM