The past few weeks have been very tumultuous for the South Korean cryptocurrency landscape. On one hand, there were intense protests against the revised taxation rules. On the other hand, there was confusion even among official sectors as to what would the revised taxation policies imply. Putting an end to all speculation, South Korean investors can now enjoy at least temporary relief. In what would be a big win for the local crypto-traders association, the South Korean government has agreed to postpone the revised taxation rules.
The South Korean Tax Subcommittee reached an agreement keeping in mind both local crypto dealers’ and legislators’ considerations. According to the new proposal, none of the revised tax rules will apply before 2023. The flip in the decision is not the first time for South Korean governments. In the last few weeks, South Korean legislators have gone back on their own words of not taxing NFT. The initial taxation plans had many loopholes in them which could mean severe taxation for long-term crypto holders. For example, those investors have been long-term holders of Bitcoin will have to pay an exorbitant amount of tax for gains they made at a time when the taxation was not in place.
With the sudden change from the government, local crypto traders can breathe relief. It is also a significant victory fort he pro-crypto lobbies in South Korea. Even anti-crypto officials have agreed to this bipartisan deal and the country is now set to continue with existing rules till 2023