Summary: South Korea had planned to take 20% take on crypto but it’s now been delayed to 2027 after rejecting calls to raise the tax threshold. Regulators cite the need for more preparation, giving traders a temporary break from taxation.
Crypto Tax Delayed Again
South Korea still seems indecisive about its crypto policies as it has yet gain hit pause on its crypto tax and for another time pushing the controversial 20% levy to 2027. This isn’t a recent news because Korea took this initiative and planned this all for 2021 and it kept on getting delayed and delayed and we’re talking about its yet another delay. Democratic Party leader Park Chan-dae confirmed both parties’ agreement to delay the bill, with a formal vote set for December 2, 2024.
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Low Threshold Sparks Pushback
There are several speculations that can be made but most the delays kept on happening because of debates over the allocated tax threshold. The delay followed a very heated debate over the tax threshold which is currently set at 2.5 million won ($1,781). The Democratic Party’s attempt to raise it to 50 million won ($35,633) was rejected. Crypto exchanges argued the low threshold would crush trading volumes, leading the government to side with delaying implementation.
The Road Ahead
As mentioned above, this isn’t the first time this policy has been postponed. This same policy has been postponed three times and for over 3 years now with officials still being indecisive over this but discussions around related policies, like inheritance and gift taxes, continue. Traders now have more time before the 20% tax impacts profits, with hopes of further revisions down the line.
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