According to South Korean news agency Yonhap, lawmakers on November 30 agreed to delay the implementation of the crypto tax law until January 2022. As part of the Planning and Finance Committee session held this week, lawmakers also ratified the government’s 20% crypto tax policy. This year, the Ministry of Economic and Finance proposed a 20% capital gains tax on crypto trading profits exceeding 2.5 million won ($2,250) per annum. The proposed cryptocurrency tax plan at the time was to come into effect in October 2021.
The postponement would give time to create the necessary crypto tax reporting infrastructure.
The cryptocurrency tax enforcement delay would give cryptocurrency exchanges ample time to create the necessary crypto tax reporting infrastructure. Platforms will also need to move forward with integrating real-name trading accounts on their systems. Currently, only Bithumb, Coinone, Upbit, and Corbit comply with the real-name trading accounts rule. This law became mandatory in the country following the legalization of cryptocurrency trading back in March 2020. Some from the crypto community have said that the cost of compliance with these strict laws may force smaller volume platforms to move abroad.
Crypto tax regulation remains a hot topic in the crypto community.
As reported earlier, South Korean lawmakers have offered this reprieve to the cryptocurrency industry. A local outlet reported that the lawmakers concurred the timeline wasn’t sufficient for the crypto exchanges to adhere to the new rules. Now the national assembly’s tax sub-committee has revealed that the crypto tax law would be implemented in early 2022. Cryptocurrency regulations have remained a hot topic in the crypto industry as lawmakers around the world. South Korea is among the few countries that have proposed a tax law for cryptocurrency. Crypto regulations remain a hot topic of discussion in the crypto community as lawmakers around the world start to regulate the industry.