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South Korea defers 20% crypto tax implementation to 2025

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On July 21, the South Korean government delayed its 20 percent tax on crypto until 2025, according to a South Korean news outlet. hankyung.

Cryptocurrency tax postponed

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According to the report, the government cited the lack of a proper investor protection system along with the current unfavorable market conditions as why it decided to delay the implementation of the cryptocurrency tax for another two years.

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The capitulation of the Terra ecosystem in May has reportedly resulted in several losses for investors in the country. South Korean exchanges increased the losses of investors due to the lack of a uniform response to the crisis.

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The report added that the “Digital Assets Law” will be implemented in 2025 when taxation comes into effect. The new structure will be adapted in line with international standards with reference to the US regulatory report related to virtual assets, which will be released later this year.

Initially, the 20% taxation of cryptocurrencies was supposed to be introduced in January 2022. However, South Korean lawmakers have decided to delay its introduction until 2023, which has now also been pushed back to 2025.

South Korea’s regulatory efforts

South Korea stepped up its efforts to regulate cryptocurrencies in the aftermath of the Terra explosion.

On July 20, prosecutors in the Asian country raided seven local cryptocurrency exchanges to seize transaction records and other material that could help investigate the network’s collapse.

In addition, efforts are being made to increase regulatory oversight of cryptocurrency exchange operations in the country.

Cryptocurrency taxation

Some governments are increasingly interested in taxing the crypto industry due to its record growth in previous years.

India has introduced several tough tax regimes, including a 30% tax on cryptocurrencies, which has seriously affected the trading volume of crypto exchanges in the country. Reports also disclosed that the government does not intend to reduce the taxation of cryptocurrency transactions.

Crypto traders have rejected Thailand’s attempts to introduce a 15 percent taxation in the country.

Crypto traders in the United States owe the Internal Revenue Service (IRS) up to $50 billion in unpaid taxes.





Credit : cryptoslate.com

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