The South Korean government is proposing a trading tax on cryptocurrencies, as part of its tax reform plan for 2020 due to be announced later this year.
The Korean Taxation Policy Association (KTPA), a consultancy body that advises the government, has proposed that profits earned from cryptocurrency trading should be subject to transfer income taxation.
This approach is in contrast to countries such as the United States, which view cryptocurrency as a form of property, and tax it accordingly.
The Korean Blockchain Association argued that current tax infrastructure is inadequate and that cryptocurrencies need more sophisticated legislation."
South Korea is likely to introduce gradual tax levying from 2021, yet it's not clear whether this will be akin to a captial gains tax or will tax transactions.
The Korean Blockchain Association argued that current tax infrastructure is inadequate and that cryptocurrencies need more sophisticated legislation. In recent years South Korea has become recognised as one of the world's leading centre for blockchain development.
In a separate development, Forbes has reported that Korean technology giant Samsung could soon become one of the world's main drivers of cryptocurrencies and blockchain. Samsung, which sells 19% of all smartphones worldwide, said in a statement: "We created a secure processor dedicated to protecting your PIN, password, pattern, and Blockchain Private Key."
"Combined with the Knox platform, security is infused into every part of your phone, from hardware to software. So private data stays private."