When it comes to cryptocurrency taxation, there seems to be no universal solution. While leading crypto exchanges like Binance had previously suggested a unified law for all cryptocurrencies, that is very unlikely to be the case. In the latest news, South Korean financial authorities have created confusion in the country’s cryptocurrency sector by suggesting either repeal or imposition of new taxation rules in 2022. The confusion surrounding the revised policies has become so intense that even officials cannot keep track of all the different suggested prospects.
The confusion started with rumors of possible taxation on NFTs. On one hand, officials have made it clear that there would be a tax imposed on NFTs. The fact that it had previously dismissed any such proposition is causing chaos and confusion all over South Korea. Many South Korean crypto investors took to social media to express their anger and grievances.
The present cryptocurrency taxation rules in South Korea make it mandatory to pay a 20% tax on income from cryptocurrency investments if the amount crosses 2.5 won, the equivalent of around $2100. The NFT taxation announcement also caused confusion with regard to South Korea’s taxation policies, which many feared would increase with the imposition of new laws. Apart from that, many factors like political tussle and media misinformation contributed to the confusion. However, the government has not yet released any official statement about the exact situation, and Korean crypto investors continue to be in fear and confusion for now