South Korea Postpones Cryptocurrency Capital Gains Tax
Date: 2024-12-03 Author: Gabriel Deangelo Categories: IN WORLD
A law that would tax income from cryptocurrency investments, which was supposed to come into effect in January 2025, has been postponed. According to the original plan, crypto investors earning income over 2.5 million won (about $1,790) would have to pay a tax of up to 22%. However, after discussions between the government, representatives of the ruling party, and the opposition, it was decided to postpone the introduction of the tax until 2027.
The authorities explained their move by the need to take into account the interests of more than 15 million young investors in South Korea who are actively involved in the cryptocurrency market. This approach is expected to support the development of the national digital asset market.
An amendment to the Income Tax Act, including the transfer of taxation of virtual assets, as well as the abolition of tax on income from financial investments, will be presented at the plenary session of the National Assembly. Its adoption is expected in the near future.
In addition, the chairman of the Financial Supervisory Commission of South Korea, Kim Byung-hwan, noted that the country does not plan to rush to create a state reserve in bitcoins. This decision differs from the policy that the new administration in the United States is going to implement.
This decision highlights South Korea's cautious approach to regulating the cryptocurrency sector, which, according to experts, can help create a more favorable environment for investors and market participants.
