South Korea’s right-wing political party has proposed a three-year delay in taxing cryptocurrency profits. If passed, the tax on cryptocurrency profits in South Korea would be delayed from early 2025 to 2028.
“Investor sentiment towards cryptocurrencies is currently negative, and most investors are expected to leave the market if the country imposes income taxes on assets that are riskier than stocks,” reads the bill’s description on the National Assembly website. saidThe bill was proposed last Friday.
The 20% tax on cryptocurrency profits was originally set to take effect on January 1, 2022, but has been pushed back twice to January 1, 2025, due to strong opposition from investors and industry experts.
The People Power Party, a right-wing political party in South Korea that currently includes President Yoon Seok-yeol, Promised in the last general election To defer cryptocurrency profits tax.
According to local news, reportThe country’s Ministry of Economy and Finance has said it has not made a decision on further deferral of cryptocurrency taxes. The ministry is expected to announce new amendments to the tax code later this month.
The country has one of the largest and most active cryptocurrency markets in the world, with about 6.5 million citizens, or 12.5% of the country’s population, using cryptocurrencies as of the end of last year. Financial Services Commission. Korean Won The most widely used fiat currency According to Kaiko data, cryptocurrency trading in US dollars will increase by 40% in the first quarter of 2024.
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About the Author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He was previously a reporter at Forkast.News, where he actively covered the downfalls of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong, and China. He holds a Bachelor of Arts in Journalism and Business Marketing from the University of Hong Kong.