South Korea Imposes Crypto Taxes, But Not For NFTs

2021-10-07 20:41:39
Regulating Crypto

The Minister of Finance of South Korea, Hong Nam-ki, confirmed that starting from 2022 the government will impose crypto taxes. Meaning that the petition to delay these crypto taxes by the majority of the crypto enthusiasts in South Korea is now definitely out the window.

One of the main reasons why the Minister of Economy denied the delay, is because the government feels that the crypto sector in South Korea is very potent. Consequently stating that delaying the taxes is not an option.

Moreover, the Ministry of Economy of South Korea announced that the new tax regulations will start on the 1st of Jan 2022. The legislation states that all personal income that will surpass $2.100 (2.5 million won) will be deemed as ‘virtual assets’. As such,  it will be subject of 20% tax.

South Korea’s government already conditioned all crypto exchanges to register and comply with the new regulations/taxes. And while some managed to comply, the majority didn’t make the cut.

NFTs next?

However, while South Korea views cryptocurrencies as ‘virtual assets’, NFTs are clearly a different subject. Due to the rocket-fast rise to fame, it seems like the popularity of NFTs caught South Korean regulators off guard. And while they were tailoring plans to tax crypto, in the meantime NFTs became the new crypto craze.

According to the KoreaTimes, the Governor of the Financial Supervisory Service of South Korea (FSS), Jeong Eun-bo, announces that talks are imminent in order to regulate NFTs. Especially since South Korea is the fifth gaming market in the world, and the fact that NFTs are becoming an inseparable part of eSports.

In fact, Samsung, Naver and several other South Korean giants already follow the NFT trend, by dwelling into blockchain gaming.

Hence, it wouldn’t be much if a surprise of South Korea decides to tax NFTs in the upcoming 2022. And considering that South Korea already imposed crypto taxes, the country will definitely shift its focus towards regulating the new crypto craze, NFTs.

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