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South Korea Authorities Rules that NFTs are Taxable

Financial Authorities of South Korea have ruled that they will be imposing Taxes on NFTs. The FSC regulatory board of South Korea is planning to rule taxes on NFTs after listing these as Virtual Assets.

Regulatory bodies and banks across the world and now including South Korea are coming closer and serious in the matters of Cryptocurrencies. Recently, India has opposed many private cryptocurrencies in India. And await the Crypto Bill to be passed in the Winter session.

South Korea and NFTs

According to local reports, the NFT space has now come under the radar of the FSC (Financial Services Commission). FSC plan to control down the gains and profits of the NFT sales, according to Vice Chairman Doh Kyu-Sang.

Under the act categorised on the Specified Financial Transactions, any profits gains made from selling or buying NFTs and virtual assets as ‘Other Income’ are renounced taxable.

NFT owners and virtual assets owners are obligated to pay a tax of 20%. This is on any kind of income which exceeds 2.5 Million Won. Roughly equals $2,102. However, the country’s finance minister has contrasting views saying that NFTs do not belong to virtual assets, at least not yet”.

There is often resistance whenever any new law or financial tax is enacted or even before that. But these controversial viewpoints of the ministry may cause a great deal of confusion in the country’s NFT marketplace.

South Korea indeed may be the first-ever nation to tax NFTs. And one of those nations in the South Aisa alongside India who has been making the headlines in crypto-related matters. Earlier in September, the country made it mandatory for all the crypto exchanges to register themselves with FSC. As part of anti-money laundering notions. But this led to the shutdowns of many small-sized exchanges.

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