South Korea to Proceed with Crypto Tax Plans despite Calls to Delay It
- The Financial Service Commission (FSC) has been confirmed as the top government body to regulate cryptos.

The South Korean government has determined to move forward with a 20 percent crypto tax on capital gains from such transactions starting next year, despite recent political turmoil. According to The Korea Herald, Seoul announced the plans after having a meeting with the vice-ministerial interagency headed by Koo Yoon-cheo.
The tax authorities will classify the new ruling on capital gains from crypto transactions done during 2022 as 'miscellaneous incomes'. That said, digital asset holdings should be reported in yearly filings starting May 2023, as they will be subject to the 20 percent tax.
Furthermore, the Financial Service Commission (FSC), the country’s top financial watchdog, was confirmed by the government as the central state body to oversee and regulate the domestic crypto sphere. The announcement comes in the wake of South Korean political parties’ efforts to delay the crypto taxation policy, as the national elections loom in a bid to catch young voters.
Crypto Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term Became a Major Political Issue
However, no South Korean ministries wanted to take care of the regulation, according to SBS. Two weeks ago, an unnamed government official said: “Most ministries do not want to take charge of the problem. A solution will emerge only after the ministries’ responsibilities have been spelled out.”
Moreover, officials from the South Korean Ministry of Strategy and Finance announced a new crypto tax recently, targeting miners who earn virtual currencies over $2,200 annually, which is subject to a 20 percent rate and starting 2022.
Finance Magnates reported in April that the Seoul Metropolitan Government seized cryptos from hundreds of tax evaders who hid their money in the form of digital assets.
The South Korean government has determined to move forward with a 20 percent crypto tax on capital gains from such transactions starting next year, despite recent political turmoil. According to The Korea Herald, Seoul announced the plans after having a meeting with the vice-ministerial interagency headed by Koo Yoon-cheo.
The tax authorities will classify the new ruling on capital gains from crypto transactions done during 2022 as 'miscellaneous incomes'. That said, digital asset holdings should be reported in yearly filings starting May 2023, as they will be subject to the 20 percent tax.
Furthermore, the Financial Service Commission (FSC), the country’s top financial watchdog, was confirmed by the government as the central state body to oversee and regulate the domestic crypto sphere. The announcement comes in the wake of South Korean political parties’ efforts to delay the crypto taxation policy, as the national elections loom in a bid to catch young voters.
Crypto Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term Became a Major Political Issue
However, no South Korean ministries wanted to take care of the regulation, according to SBS. Two weeks ago, an unnamed government official said: “Most ministries do not want to take charge of the problem. A solution will emerge only after the ministries’ responsibilities have been spelled out.”
Moreover, officials from the South Korean Ministry of Strategy and Finance announced a new crypto tax recently, targeting miners who earn virtual currencies over $2,200 annually, which is subject to a 20 percent rate and starting 2022.
Finance Magnates reported in April that the Seoul Metropolitan Government seized cryptos from hundreds of tax evaders who hid their money in the form of digital assets.