South Korea delays tax on bitcoin traders

Digital Today announced a two-year delay in the South Korean government’s enactment of taxation of digital assets.

It is assumed that from January 1, 2023, a 20% tax will be applied to gains from virtual assets exceeding 2.5 million won (~$1906). The relevant decision was taken by the National Assembly in December 2021.

According to the tax reform plan submitted by the Ministry of Economy and Finance, the implementation of the rule has been postponed to 1 January 2025.

The agency explained its reason as “The conditions of the virtual asset market, the improvement of the investor protection system, etc. we thought,” he said.

norms FSCAs part of the rules, it requires crypto companies to collect and share information about users who trade 1 million won (~$762) or more. FATF remained in effect.

Initially, the authorities planned to impose a 20% tax on the income of bitcoin traders from January 1, 2022.

Despite citizen support for the government’s plans, in September 2021 parliamentarians from the ruling Toburo Democratic Party voted for a one-year delay.

In October, representatives of the opposition People’s Power party made a similar proposal. The deputies explained their situation as the financial infrastructure was unprepared for the introduction of the tax.

The government fought back against attempts by lawmakers to approve the deferment, but in late November the relevant committee of the National Assembly voted for a bipartisan amendment postponing the introduction of taxation.

Recall that in May 2022, the media reported that the newly elected president of the country, Yoon Sok-yeol, was speaking for a new postponement.

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