South Korea enters the taxation of cryptocurrencies without taking into account NFT with 1 january 2022 of the year – Bits Media

Minister of Finance South Korea Hong Nuka (Hong Nam-Ki) reported, that the law on taxation of cryptocurrencies will begin to act in 2022 year. Moreover, NFT is excluded from the legislation.

The Minister of Finance said, that petitions about the transfer of the deadlines for entry into force taxation taxation of cryptocurrencies was rejected, And the law will enter into force with 1 january 2022 of the year. Ou wrapped, that the South Korean sector of cryptocurrencies grew to the size of the stock market, Therefore, the introduction of the law on taxation of digital assets should not be postponed.

Hong Namki confirmed, that non -replaced tokens
Excluded from the legislation. Really, In the South Korean legislation on the taxation of cryptocurrencies NFT did not receive the status of virtual assets. Therefore, income from above 2.5 Milln South Korean (2100 dollars), obtained with NFT, will not be taxed 20% tax. This decision may become a loophole in the law of taxation for cryptocurrency investors in South Korea.

NFT market is now developing a stormy pace. Sales volumes of toxicated art and collecting items, musical works and other values ​​in the third quarter 2021 reached the year $10.7 billion. Despite the growing popularity, In South Korea, NFT is not classified as a virtual asset. Regulators did not make a decision on that, To give NFT the status of a digital asset and impose an income tax, how it was done with bitcoin and ether. The situation may change, if South Korea is bypass for the example of other countries, such as the USA and the UK, in which NFT are taxed by income tax.

Financial supervision service manager (FSS) People (Jeong Eun-bo) noted, that after negotiations with other state bodies, the issue of NFT status may be resolved, to close loopholes in the tax on taxation.

Despite the uncertainty in tax regulation, NFT continue to gain popularity in South Korea. In addition to retail investors, such technological giants and venture funds as Naver, Kakao and Samsung invest in NFT. South Korea is in fifth place in the world in size of the gaming industry market. NFT is widely used in games, as gamers give the ownership of game items. If the regulators of South Korea do not assign NFT the status of virtual assets and do not have income tax, then the industry of non -replaceable tokens will receive additional advantages for development in this country.