It is widely claimed that tough rules & huge taxes might hinder the growth and adoption of digital currencies worldwide.
A regional media outlet noted that a South Korean province has taken custody of $890k digital assets of its residents who failed to pay taxes. Adding that the North Gyeongsang Province has intended to collect $136 million in local taxes by the closing of 2024.
The province is ready to meet its expected collection as it has formed local tax collection teams which includes regional government leaders and local tax officials.
Regional finance analysts argue that the move by the authorities might fuel a fear in S. Korean market sentiment and huge taxes also result in money laundering and taxes envisioned using illicit techniques.
However, few countries that charge less taxes over crypto currencies and the profit generated from them, but India and others have been imposing massive taxes on the gains.
S. Korea’s Regulatory Take on Crypto
In the past few years, South Korea’s outlook over cryptocurrencies was quite unclear but since the Beginning of 2024, nations have been upgrading it’s set of rules and other regulatory stance to attract more giant businesses in the nation.
From AML ( anti money laundering) to KYC ( know your customer) all other mandatory regulations are there is SA which is portrayed as one of the most evolving crypto markets as Singapore and Hong Kong and others.
One can easily trade cryptocurrencies in South Korea if they are not banned even though the government did not legalize crypto until writing.
By the end of 2023 the total number of cryptocurrency users in the nation was 6.5 million which accounted for 11% of the entire population of Korea. The number is expected to be 12 million in 2025.
Data from Statista notes that the revenue of the South Korean crypto market is expected to reach $855 million by the end of 2024. There are expectations that the revenue might fall to $823.4m by the closing of the upcoming year.
Other S. Korea Crypto Market Updates
On October 10, 2024 it was reported that in a divorce case proceeding that a couple can divide crypto assets during divorce.
The statement was made by a leading law firm of the nation who cited that “Under Article 839-2 of the Korean Civil Act, either spouse may request a division of marital assets accumulated during the marriage upon the divorce in Korea.”
It also leveraged a ruling of the South Korean supreme court in 2018 that confirmed that virtual assets are considered property due to their economic value as an intangible asset.
However the decision of sharing or cashing of cryptocurrencies solely depends on partners, they can directly share through wallets or can cash out and divide the amount among them.
Following the surged popularity of cryptocurrencies the cases related to digital assets divorce have also surged significantly.
The Ministry of Economy and Finance of SA on October 08,2024, reportedly announced that it was reviewing measures to ensure the soundness of stablecoin transactions. This clearly means that the widely popular stablecoins might be required to comply with more regulations in the nation.
