South Korea is delaying its planned crypto tax on digital assets for another two years, Ministry of Economy and Finance tax policy chief Ko Kwang-hyo announced on Thursday.
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A 20% tax on crypto asset gains was scheduled to kick in on Jan. 1, 2023, but Ko’s announcement delays the levy to 2025.
South Korea initially planned to impose a 20% tax on crypto from the start of 2022, but the plan was pushed back to 2023 due to heavy backlash from investors.
A 20% tax on capital gains above 50 million Korean won (US$38,624.95) from stock trading, which was planned to go into effect from 2023, has also been delayed to 2025.
Ko’s announcement was part of the new economic policy roadmap under President Yoon Suk-yeol, who previously said the crypto tax should come after preparing sufficient market infrastructure.
The roadmap reiterated that the upcoming “Digital Assets Basic Act” will regulate issuance and listing of cryptocurrencies.
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