South Korean Government Considers Postponing Crypto Tax Implementation Until 2028
The South Korean government is considering postponing the implementation of crypto tax for an additional three years, according to a recent report by a local news publication. This means that instead of taxing crypto capital gains starting in January 2025, the government is now looking at January 2028 as the new timeline.
The issue of crypto taxation has been a hot topic in South Korea since 2021, when the related tax law was passed in the National Assembly during the Moon Jae-in administration. The decision was later postponed to 2023 due to the upcoming presidential election, and then further delayed to January 2025 under the current Yoon Seok-yeol administration.
Critics have pointed out that public opinion seems to heavily influence the government’s decisions on crypto tax policy in South Korea. Recent data from the Financial Services Commission (FSC) showed a significant increase in the number of crypto investors in the country, reaching 6.45 million by May 2024.
With the recent drop in Bitcoin prices and a correction in the broader crypto market, there is growing dissatisfaction among investors regarding the current tax policies in South Korea. A market insider expressed concerns about the impact of imposing crypto income tax too soon, stating that it could drive investors away and further reduce trading volume.
In addition to the postponement of crypto tax, there are also delays in implementing financial investment income tax in South Korea. Despite the government’s plan to abolish this tax, there are discussions about the timing of its implementation. Critics argue that full-scale taxation of cryptocurrencies is not practical at the moment due to insufficient system and institutional preparation.
Opposition leaders have criticized the government for not adequately preparing for the implementation of crypto taxes, suggesting that public opinion should not be the sole factor in decision-making. The debate over crypto taxation in South Korea continues as investors and officials weigh the implications of these proposed changes.
