South Korea to add cryptocurrencies to annual household finance survey
The National Bureau of Statistics in South Korea has announced that it will add cryptocurrencies to the annual household financial report. This data will help tax cryptocurrencies from 2023.
Local media announced this news on 23 January, relaying that the National Bureau of Statistics was making this change to track household finances in conjunction with the Bank of Korea and the Financial Monitoring Service.
The agency needs this information to make better tax-related decisions. South Korea has not yet imposed taxes on this asset class, but is well on its way. In the initial phase, 20,000 households will be surveyed and the data will not be made public.
The Office for National Statistics says it has yet to determine the status of cryptocurrencies as assets, i.e. whether they should be classified on a par with financial assets such as stocks, bonds and real estate.
Im Kyung-eun, head of the social statistics department at the National Bureau of Statistics, said:
"We expect that as we conduct this year's research and gather data we will get an international settlement on what assets to classify as virtual assets."
South Korea has been debating the implementation of a tax on crypto for years. Whether any tax will be implemented, how and when is still undecided. Discussions are dragging on, with the result that decisions on tax legislation have been delayed until 2023.