South Korean financial authority stipulates that NFT is taxable

Korea Financial Services Commission (FSC) Announce On Tuesday, irreplaceable tokens or NFTs will be taxed from next year. According to the Korea Herald, this tax law amendment will impose a 20% tax on virtual asset income in excess of 2.5 million won (US$2,102) as of January 1, 2022.

FSC vice chairman Doh Kyu-sang pointed out that only some NFTs will be classified as virtual assets and therefore subject to “other income” tax, which refers to those used for large-scale investment or payment. The tax authority is responsible for defining the full scope of a taxable NFT.

However, the announcement is different from the FSC’s position when it issued a public statement last month Reiterate that NFT is not a virtual asset And it will not be regulated. South Korean lawmakers now seem to view NFTs from the same taxable perspective as cryptocurrencies.A sort of Plans to tax cryptocurrency gains It was originally scheduled to take effect on January 1, 2022, but it may now be postponed due to political resistance.

South Korea recently take Many measures have been taken to regulate the crypto market to combat money laundering in a targeted manner. According to the Korea Herald, all 25 exchanges reviewed under the August guidelines were found to be “inadequately prepared” and none of them met all registration requirements.

related: South Korea’s crypto regulation is now being extended to foreign companies

With the rapid expansion of the NFT market in South Korea and the world, the debate on regulation and innovation remains controversial.