South Korea delays tax on bitcoin traders

The South Korean government has announced the postponement of the entry into force of the taxation of digital assets for twoyear, reports Digital Today. 

It was assumed that a 20% tax on profits fromtrading in virtual assets exceeding 2.5 million won (~$1906) will be introduced from January 1, 2023. In December 2021, the relevant decision was made by the National Assembly.

According to the tax reform plan presented by the Ministry of Economy and Finance, the introduction of the rule has been postponed to January 1, 2025.

"We considered the conditions of the virtual asset market, the improvement of the investor protection system, and so on," the agency explained the reason.

FSC regulations requiring crypto companies to collect and share information about users who make transactions worth 1 million won (~$762) or more remain in force under FATF rules.

Initially, the authorities planned to introduce a 20% tax on the income of bitcoin traders from January 1, 2022.

Despite the support of the government's plans by citizens, in September 2021, parliamentarians from the ruling Toburo Democratic Party voted for a one-year delay.

In October, representatives of the opposition Power of the People party made a similar proposal. The parliamentarians explained their position by the unpreparedness of the fiscal infrastructure for the introduction of the tax.

The government fought off the legislators' attemptsto approve the postponement, but at the end of November, the relevant committee of the National Assembly voted for a bipartisan amendment postponing the introduction of taxation.

Recall that in May 2022, the media reported that the newly elected president of the country, Yoon Sok-yeol, spoke for a new postponement.

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