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South Korea will impose a 20 percent tax on capital gains from transactions of cryptocurrencies next year despite growing calls by investors to postpone the taxation.
Bitcoin and other cryptocurrency investors cried foul over the plan, insisting that taxation standards should be similar to those imposed on stock transactions.
Starting in 2023, stock and bonds investors should pay taxes on capital gains exceeding 50 million won.
Since capital gains are generated from virtual asset transactions, South Korea needs to impose the tax to promote taxation equality, said Finance Minister Hong Nam-ki.
South Korean tax codes impose taxes on profits from intangible assets, including crypto assets and trademark rights.
South Korea's financial authorities are cracking down on illegal transactions involving cryptocurrencies, such as money laundering, as virtual money prices surged.
Bitcoin prices dropped to 64 million won per unit in recent trading after surpassing the 80 million won mark here for the first time in mid-April.
