Over dozens of nations have structured their set of rules to impose taxes on cryptocurrencies, yet some nations are working on Blackfoot and plan to bring their regulations in coming years.
Most recently a South Korean media outlet, Money Today reported that the government of the nation is planning to postpone the tax on crypto traders till 2027. Park Chan-dae, the leader of the Democratic party, argued that the government is set to delay the taxes over traders till 2027, which was earlier scheduled to come in 2025.
He further notes that the government requires a more enhanced regulatory environment in order to impose taxes on cryptocurrency traders.
Park added, ” After in-depth discussions on the postponement of taxation on virtual assets, I thought that now is the time for additional institutional overhaul.”
The Democratic Party rejected the People’s Power Party’s proposal to delay the 20% tax on crypto traders, insisting it should be implemented in January 2025. They also suggested increasing the annual tax threshold from 2.5 million won ($1,781) to 50 million in SK currency.
The SK government has delayed the implementation of its virtual asset tax bill for the third time. Initially introduced in December 2020, the bill was set to take effect in 2021. However, it was first postponed to 2025 and now appears likely to be pushed back again, potentially to 2027.
South Korea Optimistic Over Crypto!
It is worth noting trading cryptocurrencies in South Korea is not prohibited, however, the nation has yet to identify digital assets as legal tender, El Salvador is the only nation that legalized Bitcoin in 2021.
This amendment aimed to largely exempt small retail investors from the tax, shifting the burden to wealthier traders and professional investors, similar to the tax structure for stocks and shares.
The legislation proposed a 20% tax, along with an additional 2% local tax, on profits exceeding 2.5 million won (approximately $1,781).
According to market experts, the postponed date is expected to improve the adoption of digital assets in South Korea and it might also help the economy of the nation to strengthen itself in the coming years.
The Korea Financial Intelligence Unit (KOFIU) has reported a notable rise in the number of active users on registered cryptocurrency exchanges in South Korea. By the close of 2023, the user base expanded by 390,000, bringing the total to 6.45 million.
This growth underscores the increasing engagement of South Koreans with digital asset platforms, reflecting a broader trend of adoption in the crypto sector.
The South Korean government is actively progressing with its CBDC pilot program, which involves participation from seven national banks. According to industry forecasts, the country’s digital asset market is anticipated to expand significantly, potentially reaching 100 trillion won in the coming years.
Data available on CoinMarketCap states that Bitcoin is the most viewed cryptocurrency in South Korea followed by Pi, Ethereum, XRP, Dogecoin, Solana, Shiba Inu, Happy Cat, Grass, Hashkey Platform Token, Moca Network, Koma Inu, and Luce.
At the time of writing, crypto market capitalization was at $3.35 trillion with an intraday decline of 1.49 percent while Bitcoin was trading at $95,031 with a decline of 2.20 percent.
