South Korea's Ministry of Economy and Finance: Cryptocurrency Taxation to Begin in January Next Year as Planned, Legislative Notice to be Released Soon

South Korea is set to implement cryptocurrency taxation in January next year, the government announced on May 7. The National Tax Service (NTS) is currently drafting related guidelines, which are expected to be released soon and proceed to legislative public notice. Jang Hwa-ha, head of the Income Tax Division at South Korea’s Ministry of Economy and Finance, stated that the NTS has held multiple operational consultations with five major crypto exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax. Per current income tax regulations, starting Jan. 1 next year, income from crypto transfers or loans will be categorized as “other income.” A combined tax rate of 22% (20% income tax plus 2% local income tax) will apply to earnings exceeding 2.5 million South Korean won. The policy is projected to affect roughly 13.26 million investors.