22 August 2026
South Korea Bill Proposes 20 Percent Capital Gains Tax On Cryptocurrency
The parliament of South Korea has put a bill that could see crypto profits taxed by up to 20%.
It has sent shocking waves throughout the crypto community in the country.
The bill states by the South Korean private sector member that a 20% tax needs to be charged on cryptocurrencies gains. If the bill receives approval with 20 percent crypto gains tax it will be the highest in the world. South Korea has taken several steps for crypto regulations and bringing more transparency.
The government of South Korea has sped up the process of regulating the cryptocurrency trading. They have categorized crypto as ‘goods’ which means that it will attract capital gains tax instead of a currency trading regime.
The proposed bill also classified crypto commodities as ‘goods’ and aims to tax them at 20% and the legislators have also categorized these digital assets as e-certificates carrying financial value and capable of e-trading.
The judgment passed in South Korea court states that cryptocurrencies have characteristics of goods and they carry specific inherent property value. Hence, these must be classified as intangible assets signifying individual value according to the transaction.
South Korea is considered a huge crypto hub. The figures state that $1.10 billion worth of cryptocurrency trades are completed per day. But foreigners traders get away with crypto taxes, thereby causing loss to the exchequer.
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