South Korea originally planned on 20% crypto asset taxation to come in effect on January 1st of 2023. The date has been delayed till 2025.
The 20% would be applied for cryptocurrency gains that exceed $1,900 during a one-year period. Some feel that this limit of $1,900 is way too strict and people such as small investors would be affected by this threshold.
NEW: 🇰🇷 South Korea delays its 20% tax on crypto-asset gains by two more years until 2025 pic.twitter.com/dmW9QwDxNr
— Blockworks (@Blockworks_) June 20, 2022
The reasoning behind this pushing back the taxation from 2023 to 2025 are the stagnant market conditions. The chairman of the Tax Subcommittee, Kim Young-jin, says that ” the broader crypto regulation, in general, was necessary before going ahead with taxation.”
South Korea is not the only country to consider taxation on cryptocurrencies. In April, India imposed a large 30% tax rule on cryptocurrencies, which has significantly reduced trading. In the United States the IRS has also been working the U.S. Treasury to ensure that client trading data of cryptocurrency brokers and exchanges are reporting client trading data.
