South Korea Considers Delaying Crypto Tax Until 2028

Bittime - The South Korean Ministry of Finance is currently considering delaying taxes on income from cryptocurrency investments until January 1, 2028. Read this article to the end to find out more!

History of Crypto Tax Delays

Taxes on capital gains from cryptocurrencies were initially scheduled to take effect in October 2021 after legislation related to these taxes was passed by the National Assembly during President Moon Jae-in's administration. 

However, the implementation of this tax has been postponed twice. First, a delay until January 2023 is being considered due to the schedule for the following year's presidential election. Second, the implementation of the tax was postponed again until January 2025 under President Yoon Seok-yeol's administration due to concerns about the burden on crypto investors and confusion in the market.

If this postponement plan is approved, then taxes on cryptocurrency income will be postponed for more than 6 years in three stages. Some parties criticize that tax policy is too influenced by the public opinion of taxpayers.

Impact of Crypto Taxes on Markets and Investors

Data released by the Financial Services Commission last May showed that the number of domestic crypto investors in South Korea reached 6.45 million at the end of last year. 

Among them, people in their 30s and 40s dominate, accounting for 1.89 million and 1.86 million respectively, representing more than half of the total investors. This explains why the political world is paying close attention to crypto investors.

A crypto player claimed that the daily trading volume of cryptocurrencies on domestic exchanges, which was in the range of 20 trillion won in March, has recently plummeted to the range of 2 trillion won. If the cryptocurrency income tax is implemented early next year, most investors will leave and reduce trading further.

Challenges in Implementing Crypto Taxes

There is criticism that implementing comprehensive taxes is realistically difficult due to a lack of systems and institutional preparation. An official said that secondary legislation is needed to classify cryptocurrencies and define the types of businesses in the industry in detail so that taxes can be levied without difficulty.

However, many argue that claims about a lack of preparation are unacceptable. Criticism from political circles stated that they had already postponed implementation twice, and had 3 years to prepare. Therefore, claiming a lack of preparation to postpone taxes once again means the government is not doing the things it has prepared.

Crypto Tax Likely Not to Be Implemented?

There are concerns that delaying the cryptocurrency tax due to public opinion and market conditions could mean that the tax will never be implemented. If postponed for 3 years, taxes will start in January 2028. 

However, general elections would be held in April that year. It is possible to defer cryptocurrency taxes. This is why some argue that early next year, when there is still time until the nearest major election (election area 2026), is the right time to implement it.

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor graphic movement price Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.