Crypto taxation has become a key part of the discussion in the regulatory debate. On the one hand, some countries are imposing capital gain taxes based on existing rules while on the other, a few nations have framed new tax regulations on crypto transactions.
South Korea is one such nation currently leading the regulatory demography with its crypto taxation rules. It has imposed a 30% tax on crypto transactions which is set to come into effect from the next year. Now, the nation is on the verge of becoming the first country to impose taxation on non-fungible tokens (NFTs).
FSA Plan to Tax NFTs Under “Other Income”
As per a report published in Korea Herald, the South Korean financial regulator Financial Services Commission (FSC) has outlined plans to introduce a tax system for NFTs as well. Doh Kyu-sang, the Vice Chairman of FSC revealed that the regulatory body is planning to bring gains from NFTs sales under the current Act on the Specified Financial Transaction Information.
Under the Specified Financial Transaction Information rule, any gains made from the sale and purchase of virtual assets qualify as “other income” and are subject to taxation.
Owners of virtual assets, such as NFT artworks by a famous artist, are required by law to pay a 20% tax on any income that exceeds 2.5 million won ($2,102) from selling the assets.
Finance Ministry Doesn’t Agree With FSA
The Finance Ministry, however, disagrees with FSA’s evaluation of NFTs and believes it’s still controversial to categorise them as virtual assets. Finance Minister Hong Nam-ki had said, “(I think) NFTs do not belong to virtual assets yet.”
The difference in opinion on NFTs between the regulatory body and the finance ministry could create a lot of market confusion which is not good for the ecosystem.
South Korea has emerged as one of the most regulatory sound crypto ecosystems after its recent implementation of AML guidelines. The new regulations pushed out hundreds of unregistered mainly comprising of small and medium-sized crypto exchanges, as they failed to fulfil the criteria of registration.
Latest Cinema
Top News
More Stories
Kareena shoots for Sujay Ghosh’s next film, Bengali police meet Kalimpong women
16 May, 2022, 7:54 pm
Hero MotoCorp expects two-wheeler industry to see double digit growth in FY13
16 May, 2022, 7:24 pm
Keeping Dhoni quiet…: Irfan made a big statement on Arshdeep’s skills
16 May, 2022, 7:23 pm
HS Prannoy reveals players were sleeping with medals after Thomas Cup win
16 May, 2022, 6:09 pm
Sensex, Nifty fall for six days due to rise in banking, auto stocks
16 May, 2022, 6:08 pm
Don’t give up today: Prannoy reveals India’s mantra during Thomas Cup final
16 May, 2022, 5:46 pm
Finland, Sweden joining NATO a mistake that would…, warns Russia
16 May, 2022, 5:39 pm
Inside Rhea Kapoor and Karan Boolani’s dreamy getaway. see photos
16 May, 2022, 5:32 pm
Chennai’s young restaurateurs celebrate street food and home-style meals
16 May, 2022, 5:23 pm
PBKS vs DC Probable Playing XI: Shaw ready to return for Delhi
16 May, 2022, 4:51 pm
Former J&K Chief Minister Farooq Abdullah has called for a ban on ‘The Kashmir Files’.
16 May, 2022, 4:44 pm
Adivi Chash celebrates ‘Major’ trailer success with 10,000 college students
16 May, 2022, 4:34 pm
India-Nepal agree to establish sister-city ties between Lumbini and Kushinagar
16 May, 2022, 4:20 pm
Vicky Kaushal Celebrates ‘Shatishuda Wala Birthday’ With Wife Katrina Kaif: Photos
16 May, 2022, 2:45 pm
IPL 2022: CSK CEO breaks silence on rift between franchise and Jadeja
16 May, 2022, 2:21 pm
Amitabh Bachchan responds to trolls calling him ‘Pudav’ and a drunkard!
16 May, 2022, 2:06 pm
Paytm will file for new licence, is excited about its roadmap for general insurance
16 May, 2022, 1:52 pm
Louiz Banks, the godfather of Indian Jazz, is teaching children again
16 May, 2022, 1:31 pm
PBKS vs DC Dream11 Team Prediction, Fantasy Cricket Hints
16 May, 2022, 12:50 pm
Margaret Thatcher statue egged shortly after installation, booed by passerby
16 May, 2022, 12:40 pm
Billboard Music Awards 2022: Olivia Rodrigo and Drake receive Best Honors
16 May, 2022, 12:14 pm
PBKS vs DC Dream11 Team Prediction, Fantasy Cricket Hints
16 May, 2022, 12:10 pm
Andrew Symonds’ sister leaves heartfelt letter at the crash site
16 May, 2022, 11:38 am
IPL 2022: KL Rahul reveals the reason behind LSG’s defeat against RS, says this
16 May, 2022, 11:16 am
Reliance to acquire dozens of brands in consumer goods worth $6.5 billion
16 May, 2022, 11:09 am
Vladimir Putin is ‘seriously ill’, suffering from blood cancer: Report
16 May, 2022, 10:39 am
Sensex rose nearly 274 points in opening trade; Nifty climbs to 15,873
16 May, 2022, 10:30 am
IPL 2022: RR’s Yashasvi Jaiswal hits a 103m six, sends the ball out of the park
16 May, 2022, 10:30 am