South Korea: taxation of cryptocurrency gains pushed back to 2023

South Korea to tax cryptocurrency gains from 2023

The taxation ofcryptocurrencygainswas supposed to start from January 2022 in South Korea. But as reported by the media outlet Reuters, it was decided to postpone this date by one year, during a session of the Korean National Assembly.

This respite is far from trivial: the law proposes to tax capital gains in cryptocurrencies at 20%, if they amount to more than 2.5 million won (1,870 euros approximately). This is similar to the taxation that affects stocks, which will also come into effect on the same date.

It seems that the move is aimed at attracting young Koreans in the run-up to the presidential elections, according to local sources. The latter are indeed more likely to hold cryptocurrencies. The opposition also considers that the proposed taxation system would be ” unstable“.

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Backing off for a better jump?

South Korea, which had in the past distinguished itself by an open attitude to cryptocurrencies, is however rather in a regulatory mood at the moment. The mandatory listing of cryptocurrency platforms had thus dealt a blow to the industry last September. And by early 2021, the Financial Services Commission had banned anonymous cryptocurrency trading on exchanges.

This delay in the implementation of taxation of cryptocurrency gains will therefore likely only allow investors to back off in order to better jump. Moreover, this is a trend that we are seeing elsewhere in the world, with regulations becoming more and more precise for the cryptocurrency sector.

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On the same subject – South Korea: no regulation planned for non-fungible tokens (NFT)

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About the author : Marine Debelloir

South Korea: taxation of cryptocurrency gains pushed back to 2023

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Deputy Editor-in-Chief on Cryptoast, I fell into the crypto-currency pot a few years ago. I’m passionate about the innovative technologies that stem from blockchain and I love to dig up the most juicy news to share with you.
All articles by Marine Debelloir.