The South Korean National Assembly’s Strategy and Finance Committee has proposed postponing the introduction of income tax on cryptocurrency transactions to the local news channel in January 2022 East asia reported today.
According to the report, authorities originally planned to introduce the tax in October 2021. The delay was caused by local cryptocurrency exchanges, which needed more time to establish an effective tax infrastructure.
South Korean crypto exchanges are currently required to complete the know-your-customer procedures for their customers as part of the implementation of the “About Special Payments” law by September 2021. The changes also include a ban on anonymous cryptocurrencies.
According to a research paper Released yesterday by chainalysis crypto analytics platform, South Korea has one of the most thriving crypto markets in the world.
“South Korea has one of the most active cryptocurrency economies in the world, ranking 7th in the world on our Global Crypto Adoption Index and 2nd in East Asia. Overall, South Korea ranks 3rd in total cryptocurrency received,” said Chainalysis.
As Decrypt The Ministry of Strategy and Finance previously proposed a tax on profits from crypto-to-fiat transactions Middle of May. This proposal also included tokens sold by crypto mining organizations and through ICOs (Initial Coin Offerings).
In July, the South Korean deputy finance minister also hit one 20% tax on profits from crypto Deals that exceed 2.5 million won (approximately $ 2,200) per year. Unlike the earlier proposal, this one included all crypto-related businesses – and not just those involving fiat.
“Tax authorities should think twice before taxing the market because the digital currency industry is still in its infancy,” Yonsei University economist Sung Tae-Yoon said at the time, adding, “Any rash taxation or Adopting regulations can be a stumbling block to sustained growth in the industry. “
At least this stumbling block can be delayed for some time.