South Korea to Defer Crypto Taxation Once Again Until 2028

South Korea is aiming to postpone the application of cryptocurrency-specific taxation until 2028. According to local reports, the ruling party in South Korea would be trying to lessen the impact on public opinion towards its administration due to the popularity of cryptocurrency as an investment asset in the country.

South Korea Postpones Crypto Taxation Yet Again, Now Aiming for 2028

South Korea is once again delaying the application of cryptocurrency-specific taxation, now aiming to implement it by 2028. This move is reportedly influenced by the government’s aim to minimize the impact on public opinion.

According to local reports, the ruling party in South Korea is seeking to lessen the blowback on its administration, as cryptocurrency has become a popular investment asset in the country. Statistics show that over 6 million South Koreans had invested in cryptocurrency by the end of 2023, putting pressure on the government’s decision on this issue.

Discontent over the cryptocurrency taxation has also affected the trading market. Market insiders have noted that the recent downturn in prices has impacted trading volumes on national exchanges. If taxation is applied next year, investors will be pushed out of the market, further affecting trading volumes.

Another reason cited for the possible measure is the lack of supporting regulations for implementing a clear cryptocurrency taxation system. An unnamed official consulted by Hankyung stated:

“Secondary legislation is needed to classify cryptocurrencies and specify the types of business within the industry in detail so that taxes can be levied without difficulty.”

Critics have pointed out that if the postponement is delayed until April 2028 due to concerns over public opinion, the political cycle in that year, with elections being held in April, will likely also result in another postponement.

If postponed, this would mark the third time South Korea has deferred cryptocurrency taxation since the first time in 2021, when it was moved to happen in 2023. Then in 2023, it was also moved again to 2025. However, this is still being considered, as Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok stated that they “are reviewing it because there is time until the tax law revision bill is prepared.”

Back in February, similar viewpoints were expressed on the issue, with an unidentified People Power Party leader stressing that taxation might be delayed until 2030.

What are your thoughts on the postponement of cryptocurrency taxation in South Korea? Let us know in the comments section below.

The above is the detailed content of South Korea to Defer Crypto Taxation Once Again Until 2028. For more information, please follow other related articles on the PHP Chinese website!