Top Crypto News: South Korea postpones a 20% tax on cryptocurrency

The South Korean government has apparently delayed the 20% tax 

on crypto earnings by two years. The controversial 20% tax on cryptocurrency earnings was meant to go into effect on January 1, 2023, but has now been delayed until 2025.

On July 21, government authorities presented their new tax reform proposals, delaying crypto tax policy to 2025, citing stagnating market circumstances and the time required to develop investor safety measures. The initial intention to levy an extra 20% tax on crypto earnings surpassing 2.5 million won ($1,900) in a one-year period remains intact.

The controversial 20% crypto tax has now been postponed for the second time since it was proposed in January 2021. The tax was meant to be implemented in January 2022, but lawmakers in the country delayed it to 2023, and it has now been delayed by two years.

Kim Young-jin, Chairman of the Tax Subcommittee and one of the lawmakers who has criticized the crypto tax policy, has advocated for the development of strong crypto regulation first. With a freshly elected pro-crypto President, Korea hopes to first govern the crypto market before implementing tax legislation.

As the cryptocurrency market reached new highs over the past few years, taxing cryptocurrencies has been a top priority for the government. Thailand planned a 15 percent tax on cryptocurrency earnings, similar to South Korea's proposed 20 percent tax, but it faced strong criticism from the retail sector and ultimately had to abandon the tax proposal.

According to a leaked report in May of this year, the newly elected president is aiming to introduce the Digital Asset Basic Act (DABA) by early next year. The regulations would target NFTs and ICOs, as well as boosting infrastructure and promoting CBDC research.