The South Korean government may soon allow domestic token issuance and open up institutional investment in cryptocurrency. Simon Kim, CEO of Hashed, revealed that the cryptocurrency taxation has been extended for another two years, accelerating the institutionalization process in the cryptocurrency and Web3 sectors.
Expected policies include allowing businesses to open cryptocurrency accounts, opening institutional investors to participate in cryptocurrency investments, issuing tokens in South Korea, and launching security tokens, among others. The 20% capital gains tax plan originally scheduled to take effect on January 1, 2022, has been postponed until 2027. The ruling Democratic Party announced a further two-year delay, while the opposition People Power Party advocates for a three-year delay. The Democratic Party has changed its stance, agreeing to the postponement plan for digital asset capital gains tax.
The previously opposing Democratic Party criticized the political maneuvers of the People Power Party, emphasizing that cryptocurrency gains will be taxed in 2025. Overall, South Korea's cryptocurrency policy is gradually moving towards openness and institutionalization, sparking widespread discussion and attention in the market.