Active crypto traders in South Korea said they are prepared to walk away from the scene forever – slamming “unfair” 20% crypto trading tax law proposals unveiled by the government earlier this week. It is a sign, perhaps, of what traders in other nations will have to deal with in the near future, with draft crypto tax laws now being drawn up by governments all over the planet.
The proposals, which will be bundled with a range of other tax changes, are almost certain to be voted into law in the next parliamentary session, which will convene in autumn. This would allow the law to promulgate in October 2021, and will see anyone earning over around USD 2,100 in crypto trading profits obliged to cough up 20% of their earnings to the taxman.
Speaking to Our, Mira Kim, a South Korea-based blockchain consultant, stated,
“Even [people trying to] bypass [the tax] by using an overseas exchange will eventually have to use a fiat ramp at a domestic exchange. That process will involve clarifying how you acquired the funds.”
Eventually, said the lawyer, the tax authorities would be able to pick on the deal, and would come with questions. Furthermore, the taxman has been given the power to hit would-be crypto tax evaders with a second 20% tax bill should they fail to declare their earnings correctly.
Tax authorities might still struggle to identify and tax peer-to-peer (P2P) trading, said lawyers – a fact that could lead to a boom in harder-to-trace crypto deals.