South Korean authorities are considering delaying the controversial 20% crypto tax following concerns from the local crypto community. Initially set to begin in 2021, South Korea’s 20% crypto gains tax might now be postponed until 2028 amid fears that the tax could negatively impact the local market.

South Korea’s Ministry of Economy and Finance plans to impose a 20% tax on gains exceeding the basic deduction of 2.5 million won (approximately $1,800), plus an additional 2% local income tax. The ruling party is contemplating pushing back the crypto gains tax, originally scheduled for early next year, until 2028. This would mark the third delay by the government.

Democratic Party leader Lee Jae-myung suggested that the country should “reconsider the timing of its [crypto tax] implementation.”

The delay discussions stem from the technical difficulties associated with implementing the tax due to inadequate system and institutional preparation. Some experts argue that institutional readiness for the tax is still lacking.

Korean crypto exchanges like Upbit, Bithumb, and Coinone have expressed concerns that trading volumes will significantly decrease if the tax is enforced. An anonymous spokesperson from a crypto exchange mentioned that “many exchanges will probably shut down next year” if the tax is implemented as scheduled.

Stay updated with the latest developments in the cryptocurrency world on Global Crypto News.

Post Views: 4