Overview
South Korea has introduced a 24.2% corporate and local income tax on virtual currency exchanges, effective immediately. This move aims to regulate the booming crypto market while addressing fiscal responsibilities. Contrary to earlier rumors of a blanket ban, the government has opted for taxation as a regulatory measure.
Key Details
Tax Breakdown:
- 22% corporate tax + 2.2% local tax for businesses earning over 200 billion KRW (~$187 million).
- Exchanges must pay corporate taxes by March 31 and local taxes by April 30.
Market Context
South Korea is a top-tier cryptocurrency market, with exchanges like Bithumb and Upbit leading global trading volumes:
- Bithumb: Estimated 3176 billion KRW (~$2.97B) profit in 2017, liable for **600 billion KRW** (~$560M) in taxes.
- Upbit: Ranked #1 in daily trading volume ($40B), outpacing Bithumb ($39.3B).
Regulatory Background
The government previously considered a ban on crypto trading due to泡沫 concerns but pivoted to:
- Real-name verification for accounts.
- Blocking new anonymous accounts.
FAQs
Q: Why did South Korea choose taxation over a ban?
A: To balance market growth with accountability, avoiding drastic measures that could stifle innovation.
Q: How does this tax compare globally?
A: At 24.2%, it’s stricter than some jurisdictions but aligns with South Korea’s high-revenue corporate tax brackets.
Q: Will this reduce crypto trading in South Korea?
A: Unlikely—exchanges like Upbit and Bithumb continue to dominate全球 volumes, indicating sustained demand.
SEO Keywords
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