South Korea plans to apply a 20% tax on crypto gains starting in January 2025.
The Democratic Party proposes increasing tax exemption to $35,900 for crypto investors.
Authorities are enhancing tools and measures to combat cryptocurrency tax evasion nationwide.
South Korea reaffirmed its plan to tax virtual currency gains starting January 1, 2025, after a series of delays that pushed back the policy from its original 2022 launch date.
Jin Seong-jun, Chairman of the Policy Committee for the Democratic Party of Korea (DPK), emphasized the need for legal clarity and financial stability regarding crypto taxation during a radio appearance.
The plan will impose a 20% tax (22% including local tax) on crypto asset profits. However, concerns remain about domestic and overseas transactions.
Jin acknowledged that while domestic cryptocurrency transactions are easily monitored for tax purposes, overseas transactions pose challenges due to limited tracking capabilities.
To address this gap, the DPK proposes taxing domestic transactions immediately and extending the tax to overseas transactions by 2027, when monitoring tools should be more effective.
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