South Korea mulls delaying 20% crypto tax amid local pressure

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As a researcher with extensive experience in the South Korean crypto market, I strongly believe that the proposed 20% crypto gains tax is a significant threat to the local community and could potentially lead to devastating consequences for the industry. Based on my observations and analysis of the situation, it seems that there are compelling reasons why the implementation of this tax should be postponed or even reconsidered.

South Korean officials are contemplating delaying the contentious 20% cryptocurrency tax following objections from the domestic crypto sector.

As a researcher, I’ve come across some intriguing news regarding South Korea’s proposed crypto gains tax. The initial implementation was slated for 2021; however, recent concerns over potential market devastation have reportedly led to a possible delay until 2028, according to the Korea Economic Daily. Regrettably, they didn’t provide any specific sources for this information.

The Ministry of Economy and Finance in South Korea intends to levy a 20% tax on income earned above the threshold of 2.5 million won (approximately $1,800), along with an extra 2% local income tax. As per recent reports, there are plans within South Korea’s ruling party to potentially push back the crypto tax, initially slated for introduction in early 2023, until 2028 – marking the third such delay from the government.

The report mentions that discussions about potential delays emerged following Democratic Party head Lee Jae-myung’s suggestion for South Korea to reconsider the implementation timeline for crypto taxes.

According to the Korea Economic Daily, the technical complexity of implementing crypto gains tax is underscored by inadequate preparation within the systems and institutions. Some experts have expressed that institutional readiness for this tax measure remains “far from sufficient.”

According to a previous report by crypto.news, major South Korean cryptocurrency exchanges such as Upbit, Bithumb, and Coinone have expressed concerns that trading volumes will decrease substantially once the proposed tax legislation takes effect. An unidentified representative from one of these exchanges has warned that several platforms could potentially close down next year if the tax is imposed as planned.

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2024-07-15 10:26