🚨 SOUTH KOREA DELAYS CRYPTO TAX UNTIL 2027 🚨
Both major parties in South Korea – the Democratic Party and the People Power Party – have reached a consensus to postpone the implementation of the Crypto tax until 2027, instead of the originally planned January 2025.
💡 Why did the government decide to delay the tax?
1️⃣ Ensure market stability:
The government wants to create a more investor-friendly environment before imposing high tax rates.
2️⃣ Avoid negative impact on liquidity:
The imposition of a 20% tax could make investors hesitant, leading to a significant decrease in liquidity – which would be detrimental to the development of the crypto market in South Korea.
3️⃣ Prepare management infrastructure:
Delaying the tax also gives the government more time to build and refine regulations and systems for better market oversight.
📈 Implications for the Crypto market:
- Delaying the tax means that South Korean investors have more time to enjoy profits without bearing the burden of high tax rates.
- With this policy, South Korea continues to assert its position as one of the most crypto-friendly countries, promoting foreign investment flows into the domestic market.
- This information may help improve global market sentiment, increase liquidity, and create favorable conditions for blockchain projects to develop in South Korea.
⏳ What will happen after 2027?
The South Korean government will impose a 20% tax on crypto profits exceeding 2.5 million won (approximately 1,900 USD). However, they also commit to continue monitoring and adjusting the policy as necessary to align with market developments.