South Korea is trying to regulate the cryptocurrency market, in order to not to ban it. The country government understands that cryptocurrency is an additional source of income for the country. Moreover, if this income is regulated (read “taxed”), the income would be even higher.
Hence, it is mandatory to develop appropriate legislation that would regulate the cryptocurrency market.
On the 22nd of January, the South Korean government has announced that it will be imposing taxation on the income from crypto coins. The tax will be 22% of corporate tax and 2.2% of local income tax, totalling in 22.2% from the income sum.
This legislation comes as a result and a conclusion of a massive anti-money laundering probe, which revealed that South Korean banks make more income from cryptocurrency transfers and their commissions than from any other service they provide.
Hence, the government shall be interested in controlling the crypto-market. The use of anonymous accounts is going to be forbidden, new accounts will not be opened for a while, foreigners will not be able to use South Korean accounts for trading anymore.
The conditions are rather harsh for those who are on the side of cryptocurrency, though. But even those users have to admit that those conditions are directed on the creation of safe trading environment.