South Korea finally responded to recent rumors stating that it will impose a 10 percent tax on cryptocurrency trading profits. According to a recent report, the country’s Ministry of Finance had already denied the existence of such a taxation scheme.

Earlier, South Korean cryptocurrency investors were alarmed when a report claimed that the government will now be imposing a 10 percent tax on crypto earnings. On June 22, South Korean publication Chosunilbo reported that the government has plans to categorize cryptocurrency speculation earnings as income and will eventually impose a 10 percent tax on them.

“We have already decided to tax profits from investments in cryptocurrency,” the report cited an unnamed high-ranking government official as its source. “The question is only how much time we should give investors and when to start implementing it.”

The source also stated:

“Gains on investments in cryptocurrencies will be taxed at a fixed rate regardless of the amount.”

However, it now appears that the earlier report may not be totally accurate. Recently, a new report surfaced which directly contradicts the previously rumored 10 percent taxation.

South Korea’s Ministry of Strategy and Finance has now denied the rumors of a 10 percent tax on cryptocurrency gains. The ministry, which is South Korea’s government agency that handles financial policy matters, stated that the rumor “is different from the fact.”

Even if the government will eventually decide to tax cryptocurrency gains, its actual implementation is not likely to happen very soon. Such a taxation scheme will “take a considerable period of time” to go into effect since the government will still need to thresh out the legal issues surrounding such a move.

South Korea’s Ministry of Finance Says 10 Percent Crypto Tax Not True was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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