South Korea postponed its crypto-asset taxation plan to 2023.
South Korea’s general meeting on Thursday passed the decision to delay the taxation of virtual assets until 2023. The country was planning to impose a 20% tax on crypto earnings over 2.5 million KRW (US$2,122) in a one-year period from January 1, 2022.
The move came ahead of the presidential elections in March. Both the government and opposition seem to be trying to appeal to voters in their 20s and 30s who are likely to be cryptocurrency investors and are therefore opposed to this tax.
Harold Kim, director of the Korean Blockchain Association (KBA), spoke to CoinDesk about the issue. Kim noted that while it’s common for industry and investors to oppose tax plans, it’s hard to see this type of deferral move.