- South Korea is considering delaying the 20% crypto tax to 2028, initially set to start in January 2025
- The delay could boost investments in South Korea, one of the most active crypto markets globally
- The final decision from the Ministry of Finance is expected by the end of the month, coinciding with the launch of Ethereum ETFs
There is one more piece of good news to add to the many that are driving the market higher.
According to reports directly on the South Korean parliament’s website, there would be the political will to postpone the implementation of a relatively punitive tax regime compared to the current one, which could encourage purchases in a country that is one of the most active in this market.
This is a 20% tax that was supposed to go into effect two years ago but has been delayed. The new deadline would be January 1, 2025, but that could be pushed back again, this time to 2028.
The crypto world is facing a bit of a perfect storm this week. It’s a great opportunity to discuss this in our community, created to experience the crypto world around the clock.
Another South Korean Win for Crypto?
South Korea’s market is one of the most active on Bitcoin and crypto. What happens there can have a big impact on the prices of major cryptos.
The latest news from Seoul concerns the possibility, mentioned directly on the Korean parliament’s website, of once again postponing the entry into force of a taxation regime for crypto gains.
This tax plan would increase the tax rate on crypto gains to 20 percent, and it’s had the opposite of the desired effect on the market.
A lower tax rate might benefit certain investments, especially in a country where volumes are among the highest in the world. However, the overall impact is uncertain and can vary depending on other economic factors.
This is what’s happening now: the party that promised more openness to the sector during the election campaign has taken power.
South Korea’s Pending Crypto Tax Update
Nevertheless, confirmation from the Ministry of Finance, the government agency responsible for taxation in South Korea, has yet to be obtained.
Confirmation could come as early as the end of the month when precisely the ministry is to publish any amendments to the country’s tax code. Additionally, the concurrent arrival of ETFs on Ethereum would be a positive development for the market.
