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All virtual assets, except NFT, are subject to the act

​The South Korean cryptocurrency tax act comes into force in 2022

08.10.2021 - 12:20 yanazakomoldina yanazakomoldina

All virtual assets, except NFT, are subject to the act.

What's new? South Korean Finance Minister Hong Nam-ki has stated that the cryptocurrency tax law will come into force in 2022. According to the document, income from cryptocurrency activities over 2,5 million South Korean won ($2,100) will be taxed 20%. However, the NFT did not fall under the law, The Korea Times refers to materials from the government meeting.

Material on The Korea Times website

Why did the authorities adopt this law? Hong Nam-ki noted during the meeting that petitions to postpone the entry into force of the law had been rejected. According to him, the South Korean digital asset sector had grown to stock market size, so implementation of the document should not be delayed.

What is the future of the NFT? South Korean Financial Supervisory Service Manager Jeong Eun-bo stated at the meeting that after negotiations with other government agencies, the issue of NFT’s status can be changed. The fact is that the current solution may become a loophole in the law, as the NFT market is growing rapidly.

Unless the regulators make the NFT a digital asset and tax it, the industry will gain further development benefits, Jeong Eun-bo added.