The government of South Korea has decided to postpone the 20% tax associated with gains in cryptocurrency, by another two years. This 20% tax when it came to crypto gains was seen as controversial. It was supposed to initially come into effect from the 1st of January in 2023. However, it has now been deferred by two years to 2025.
The Crypto Gain Tax From South Korea
Officials from the South Korean government announced what their new reform plans were regarding tax, last Thursday. They said that they would be deferring the cryptocurrency tax policy by two years. This was due to market conditions that were stagnant. Another factor was that more time was required to prepare the protection measures for investors.
There were plans initially of imposing around 20% tax additionally on crypto gains that exceeded around 2.5 million won. This is roughly $1900. This plan hasn’t changed. Instead, this crypto tax that is seen as controversial has been delayed yet again. This is the second time that it has been delayed since it was first announced in January of 2021.
At first, this tax was going to be introduced in January of 2022. However, lawmakers have now deferred it by two more years. One of the lawmakers who is opposed to this crypto tax policy is Kim Young-Jin. He believed that there is a need for good regulation of cryptocurrency first. The new president of the country is pro-cryptocurrency. This is why the people are hoping to first hopefully regulate cryptocurrency before tax rules are implemented.