Profits from 'virtual currency', pay taxes from next year... Exchanges that looked displeased

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next year, tax will be levied on cryptocurrency investment income. However, there are voices from exchanges saying that it is difficult to build a system for taxation within this year.

Reporter Kim Jung-woo reports.

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next year, if you earn more than 2.5 million won a year from cryptocurrency transactions, 22% of the excess income will be taxed.

If your income is 10 million won, you have to pay 22% of the 7.5 million won minus the 2.5 million won, or 1.65 million won in tax.

Domestic exchanges need to create a system that can understand the transaction details of more than 7 million investors, but the four large domestic exchanges are in the position that it is difficult to establish a system by the end of the year because detailed guidelines from the government have not yet been prepared.

Due to the nature of cryptocurrencies that move freely through exchanges, it is not easy to determine the initial purchase price, and the issue of sharing investor personal information between exchanges must also be resolved.

[Virtual currency exchange official: You need to know about the purchase price under the assumption that you are moving (virtual currency). We

circulate

personal information, will ordinary investors admit it?] If

you go through a foreign exchange such as Binance, it may be more difficult to understand the initial purchase price of a cryptocurrency.

In fact, if a higher price is offered as the acquisition price through foreign exchanges, it is difficult for the domestic tax authorities to detect it.

[Park Seong-Jun / Director of Dongguk University Blockchain Research Center: I do not know how to determine the purchase cost when I come to Korea after purchasing from an exchange abroad.

Exchanges don't sell bitcoin, and there may be P2P and personal transactions.] In

the case of NFTs that digitize pictures, videos, and music, the market is classified as a virtual asset, but it is also a blind spot to be excluded from taxation.

In response, the Ministry of Strategy and Finance is negotiating a plan to share acquisition cost information between domestic exchanges, and announced that it will prepare so that there will be no setbacks in taxation as the actual first filing and payment period is May 2023.