National Tax Service Collects Data from Bank Federation and Submits to National Assembly
[Sejong=Asia Economy Reporter Kim Hyun-jung] It is estimated that there are about 227 businesses handling various cryptocurrencies in South Korea.
According to data submitted by the National Tax Service to Go Yong-jin, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, the number of businesses presumed to be handling cryptocurrencies nationwide is 227. The list includes many cryptocurrency exchanges such as Bithumb, Upbit, Coinone, and Korbit, but also includes virtual asset wallet services and virtual asset custody and management services.
The estimated list collected by the National Tax Service through the Korea Federation of Banks was identified from each bank providing accounts for investors' cryptocurrency transactions. Although cryptocurrencies gained their first legal basis with the enforcement of the "Act on Reporting and Using Specified Financial Transaction Information" in March of this year, they have not been recognized as financial assets, and their legal status and responsible government departments remain unclear.
Therefore, among government ministries, no agency currently has a detailed understanding of the status of cryptocurrency businesses. Currently, coin businesses operate registered under industries such as mail-order sales, e-commerce, or software development with tax authorities. The tax authorities also cannot accurately grasp the status of these businesses.
In response to the National Assembly's data request, the National Tax Service replied, "We do not separately manage the status of virtual asset businesses and cannot provide it," and instead submitted the estimated list of cryptocurrency-related businesses from the Korea Federation of Banks. However, this list is only an estimate and not precise.
Go Yong-jin, chairman of the Tax Subcommittee of the Planning and Finance Committee, has expressed the view that the cryptocurrency taxation plan does not pose fairness issues compared to other assets. The government plans to impose taxes on cryptocurrency gains exceeding 2.5 million won starting from the 2022 tax year (to be reported and paid in 2023). Recently, Go stated on his social media, "Stocks are subject to securities transaction tax every time a trade is made (omitted), but currently, no taxes are imposed on virtual assets," adding, "Countries such as the United States, Japan, Germany, and Australia are already taxing virtual assets, so we are falling behind the international trend of virtual asset taxation administration."
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