October 22, 2021

South Korea has Delayed Crypto Taxation Bill

Crypto adoption has reached Asia after completing its cycle in Europe and the US, and Asia has been taking it pretty kindly, up till now except China which has a very hard stance for cryptocurrencies. Japan, Thailand, and even South Korea are considering adopting cryptocurrencies or at least making them a part of the digital money regime.

South Korea is already considered a hub for cryptocurrencies, there are tons of projects being developed there as we speak, and the overall involvement of the state and people regarding the crypto industry is simply marvelous. At the beginning of the year, the state was issuing a bill for crypto taxation; this bill would apply not only to crypto exchanges but to those who made a serious gain on their crypto trading practices.

Crypto Taxation Laws

The bill was expected to get completed at the end of 2021, but the state has issued a halt on the crypto taxation bill, and it will apparently not be able to get processed or even passed in 2021. There are currently various changes that are being made to the tax code in South Korea, and the whole initiative due to this little pushover has been postponed until first January 2023.

The regulatory commissioners and officers are trying their best to be able to prove cryptocurrencies as a financial investment before the state for the bill to get processed. Roh, who is a representative from the ruling party, has actually postponed the taxation of digital assets. The representative has requested an amendment to the Income Tax Act, which is going to take some time, and because of it, the crypto taxation bill couldn’t go through throughout the year 2021.

The whole problem is that cryptocurrencies are needed to be classified as other means of income or some postulation of investment for them to be taxable. The general taxation code doesn’t have any such clause or section for digital assets, and that is why it is important to first attend to the main taxation bill and then attend to the crypto bill separately.