South Korea May Introduce NFT Trade Income Tax

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South Korea prepares to adopt taxation of income from cryptocurrency trading. However, FSC vice-chairman Doh Kyu San believes that collectible tokens should also fall under the law.

Doh Kyu-sang, Vice Chairman of the Financial Services Commission (FSC) of South Korea, said the Ministry of Economy and Finance has already
trains changes to the draft law on taxation of cryptocurrencies. The amendments will allow taxation of income from NFT trading.

In early October, it was reported that the bill should not affect collectible tokens. At the time, South Korean Finance Minister Hong Nam-ki noted that NFTs do not fall under the definition of taxable digital assets. However, he acknowledged that the topic is for further discussion, and it seems that it was decided as part of the discussions to tax and trade NFTs.

During the National Assembly meeting, Doh Kyu San revealed that not all NFTs should be taxed. Only those tokens that are issued for the purpose of being used as an investment instrument or a means of payment should fall under the bill on taxation of digital assets.

Recall that now in South Korea there is a large-scale process of tightening the regulation of cryptocurrency platforms. In September, due to the introduction of new regulatory requirements, 35 cryptocurrency exchanges closed. In mid-November, industry participants opposed tougher KYC procedures and reporting requirements for cryptocurrency transactions.

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