Published
2 months ago on
February 20, 2024
Political factors helped the Korean crypto investors from the country’s new harsh crypto tax rule again.
South Korea is a hub of crypto investors. In this country, nearly half a dozen crypto companies are allowed to provide crypto-fiat paired crypto trading. Under the existing crypto tax rules, gains from selling crypto held less than a year are subject to a flat tax rate of 28%, while long-term gains from selling crypto remain tax free.
This year, the South Korean tax body was willing to introduce 2021’s proposed new crypto tax rule for but the People Power Party decided to postpone this plan by 2 more years.
— Cointelegraph (@Cointelegraph) February 19, 2024
South Korea's ruling party pledges to postpone crypto tax implementation for two years. The move aims to establish a comprehensive regulatory framework before introducing taxation on crypto gains.
The current ruling political party of this country aims to introduce a perfect & crypto-dedicated framework for the crypto sector. It is expected that it will happen within a few months.
According to this political party, the crypto sector needed more regulation improvement just like the traditional financial market. Otherwise, crypto tax rules will ruin the crypto sector.
Notably, the lawmakers are not in the mood to introduce complete change in the existing crypto tax rule. The ruling government suggested making a crypto tax rule just like the stock market.
Under the 2021 proposed Crypto tax plan, Crypto gains above 2.5 million Korean won ($1,875) incur a 22% tax rate, whereas stock gains are taxed only once they surpass 50 million won gain. So gain threshold will be an important factor for crypto traders with new tax policy.
Some people dragged attention toward the political drama of this country and claimed that they postponed the crypto tax rule every time to gain political benefits because the majority of the people are happy with the existing rule, where long-term crypto investment is free of tax, & they don’t face any heat from the public.
However, the provided reasons to postpone the proposal really are perfect and here also we can’t deny that the crypto sector is still partially regulated in Korea.
Read also: American banks are in queue to get regulatory approval to buy Bitcoin
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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