Reports hint at South Korea’s further postponement of crypto taxation from 2025 to 2028.
The taxation was initially scheduled in 2021, which saw multiple postponements.
Key reasons for the delay in taxation include economic instability and the lack of tax infrastructure.
South Korea’s plans to tax cryptocurrency gains have faced another setback, with a potential delay pushing implementation as far back as 2028. The revised proposal awaits approval, with the government expected to reveal the estimated date of the crypto investment profit tax implementation later this month.
Taxation on crypto gains has been postponed multiple times since 2021. The country initially announced the tax proposal in January 2021, with plans for enactment in February. The proposal aimed to levy a 20% tax on crypto investors whose gains exceed 2.5 million won (approximately $1,900) in a year.
While the country initially planned to implement taxation in October 2021, it was later postponed to 2023, citing the presidential election in 2022 and a lack of taxation infrastructure.
Earlier this month, the government announced a further postponement to 2025. South Korea pointed to the bearish economic outlook as one of the major reasons for the delay, emphasizing the need for sufficient time to prepare investor protection measures. The government also expressed concern about the potential tax burden the new regulation would place on investors.
South Korean President Yoon Suk-yeol stressed the need for a clear legal system for cryptocurrencies before implementing the tax. He suggested delaying crypto taxes until the market matures and legislation is in place to ensure transparency and investor protection.
South Korea’s proactive approach to crypto regulation, emphasizing investor safeguards and market stability, underscores the nation’s commitment to fostering a secure and transparent digital asset environment. As the July 19th implementation of its landmark user protection law approaches, the country’s efforts to prevent potential market disruptions through comprehensive altcoin analysis further solidify its position as a leading player in responsible crypto adoption.
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