Cryptocurrency holders in South Korea have been granted an extra three months before implementing a new crypto taxation rule. The rule that was to be implemented in October 2021 will now be delayed until January 2022. South Korean lawmakers had finalized the digital currency tax proposal in July, with the Deputy Prime Minister Hong Nam-Ki revealing it would take effect in late 2021. The rule requires Koreans to pay a 20% tax on digital currency profits above KRW2.5 million ($2,259).
South Korean regulators delay crypto tax law until 2022.
“It is premature for the government to impose cryptocurrency taxes at a time when the market has not developed enough in a stable manner. Any rash taxation or introduction of regulations can be a stumbling block for sustainable growth of the industry.” The Korea Blockchain Association soon called on the government to delay implementing the tax law for two years. According to the lobbying organization, the period given to exchanges was too short. Oh Gap-soo, the association’s chairman, remarked that it is necessary to provide a reasonable minimum period of preparation so that it can contribute to the national economy and to secure tax revenue in the long term.”
Crypto tax remains a hot topic in the crypto community.
According to the local outlet Dong-A Ilbo reports, South Korean lawmakers have offered this reprieve to the digital currency industry. The outlet reports that the lawmakers concurred the timeline wasn’t sufficient for the exchanges to adhere to the new rules. The national assembly’s tax sub-committee is expected to announce the specific implementation dates in the coming week. 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.