• South Korea to tax cryptocurrencies, but not NFT

  • At the National Assembly’s annual review on Wednesday, Economy and Finance Minister Hong Nam-ki said the government plans to start taxing gains on virtual assets from next year. However, when asked about taxing NFTs, the minister said the issue of whether NFTs are classified as virtual assets is still under discussion – adding that NFTs are currently not classified as virtual assets in the income tax law.

    Yoo Gyeong-joon, a member of the National Assembly’s Strategy and Finance Committee, asked Hong if he was prepared to tax NFTs, saying that digital assets have gained prominence in the creative arts.

    The popularity of NFTs has been on the rise over the past two years, with a focus on creating and trading digital artworks. nft artist Beeple’s Everydays. made from a collage of 5,000 images, The First 5,000 Days is the most expensive NFT artwork to date, selling for more than $69 million. In South Korea, internet company Kakao’s blockchain subsidiary Ground X opened Klip Drops in July, an NFT art marketplace where artists successfully auction their digital artworks in exchange for Kakao’s cryptocurrency KLAY. outside the art sector, the online gaming, entertainment and real estate industries are also finding uses for NFT.

    The US treats NFTs as collectibles and income from trading NFTs is subject to a 28% tax on trading gains, while in Australia, gains from NFTs are also taxed based on capital gains.

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