South Korean lawmakers have recently put forward a proposal to push back the implementation of the crypto gain tax until 2028. This decision comes in light of the current negative sentiments surrounding the crypto industry, with concerns over the high-risk nature of virtual assets and the potential impact of imposing taxes on investors.
The ruling political party introduced the bill on July 12, explaining that the delay is necessary to prevent further market instability. They stated that rushing to tax virtual assets amidst the current volatile market conditions could drive investors away, ultimately harming the industry in the long run. The proposed extension would shift the original implementation date from January 1, 2025, to January 1, 2028, pending approval from the sub-committee which met on July 15 to review the bill.
This move reflects President Yoon Suk-yeol’s campaign promise to extend the crypto gains tax if elected. His administration aims to establish a comprehensive regulatory framework before enforcing the tax, prioritizing market stability and investor protection. While the Ministry of Economy and Finance has not yet confirmed the delay, they are expected to announce new tax policy amendments by the end of the month.
South Korea’s crypto industry has been rapidly growing, with the country emerging as a key player in global crypto trades. The national currency, Won, has become the leading currency for crypto transactions, with a total trade volume of $456 billion on centralized exchanges in the first quarter of this year. The country has also been proactive in implementing regulations to safeguard crypto users and promote industry growth.
Overall, the proposed delay in implementing the crypto gain tax reflects the government’s commitment to fostering a stable and thriving crypto ecosystem in South Korea. By prioritizing market conditions and regulatory clarity, lawmakers aim to support the industry’s continued growth and protect investors from potential risks.