South Korea Postpones Tax On Cryptocurrencies Until 2025Admin
The South Korean government has decided to postpone introducing a 20% tax on cryptocurrency income until January 1, 2025. Authorities said that initially, it is necessary to develop and approve rules to protect investors and only then deal with taxation. The country finally confirmed plans to postpone this initiative, which was planned to be launched from the beginning of 2023.
President Yoon Seok Yeol promised to create a particular group that would develop a regulatory framework for the digital currency sector. The original plan to levy a 20 percent tax on those whose cryptocurrency earnings exceed 2.5 million won ($1,900) in one year will remain unchanged.
The journalists assured that the reason for the delay of the law could be that smaller crypto investors would be unfairly attacked by the tax authorities, given that the threshold for capital gains in the traditional stock market is much higher.
Experts noted that this is the second time the South Korean government has postponed implementing a cryptocurrency tax since the first announcement in January 2021. It was decided to postpone the law’s entry into force to 2023, although it was initially planned to bring it into force as early as January 1, 2022.
Analysts stressed that Yoon Seok Yeol is good with cryptocurrencies and likely wants to make sure industry regulation is sound before imposing any taxes.