Regulation
South Korea Moves to Delay Cryptocurrency Tax Until 2028 Amid Market Concerns
South Korean lawmakers have proposed a bill to delay the tax on cryptocurrency earnings until 2028.
The ruling political party proposed the bill on July 12, citing current negative sentiment around the cryptocurrency sector as the reason for the extension. declared:
“With investor sentiment toward virtual assets deteriorating, some argue that hasty taxation of virtual assets is not desirable at this time, as virtual assets are high-risk assets with a higher risk of loss than stocks, and if income tax were also imposed, it is expected that most investors would abandon the market.”
South Korea had originally planned to implement its cryptocurrency earnings tax on January 1, 2025. However, if the new bill is passed, the implementation date will be moved to January 1, 2028. The subcommittee met on July 15 to continue the review.
The move is in line with President Yoon Suk-yeol’s campaign promisesHe assured voters that he would extend the cryptocurrency earnings tax during the last general election if elected. His administration aims to create a clear regulatory framework before implementing the tax.
However, the Ministry of Economy and Finance has not yet decided on the postponement. The ministry plans to announce new amendments to the fiscal policy by the end of the month.
“No decision has been made on further postponing the implementation of taxation of income from virtual activities,” a ministry spokesperson said. She said.
South Korea’s Thriving Cryptocurrency Industry
South Korea is one of the fastest-growing countries in the world in adopting this emerging sector.
In the first quarter of this year, blockchain platform Kaiko reported that the Asian country’s national currency, the Won, emerged as the leading currency for global cryptocurrency trading, with a cumulative trading volume of $456 billion across centralized exchanges.
Furthermore, the Asian country is a shining light for its proactivity approach to cryptocurrency regulationSouth Korea has implemented different rules designed to improve consumer protection standards for cryptocurrency users in its jurisdiction.