South Korea Postpones Crypto Tax Law to 2023 amid Tightening Rules

Crypto Tax Law

The South Korean National Assembly finance committee agreed on Tuesday to delay a 20% tax on crypto profits above 2.5 won, equivalent to $2,105, up to 2023.

The tax that was to be introduced one year ahead of a similar capital gains tax on stocks raised concerns about why the digital assets were getting a different treatment. The proposal is expected to be voted on by the house on Thursday.

The South Korean government pondered about the crypto levy in 2017 to control the excitement around digital assets. The regulator had cited money laundering, excessive speculations, and tax evasion.

The founder of KryptoSeoul, Erica Kang, says taxation in crypto could ease volatility and speculations and that the sector is not against it.

South Korea’s step on taxing digital assets comes as countries worldwide rethink their taxation laws to net the $3 trillion crypto industry. Austria is expected to launch a 27.5% crypto tax beginning next year.

Source: Bloomberg

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