The law on taxation of capital gains from cryptocurrency investments was supposed to come into force in January 2025. Starting next year, the government planned to withdraw up to 22% of the income of crypto investors exceeding 2.5 million won ($1,790) into the budget. However, on the eve of the law coming into force, the government, the leaders of the ruling party and the opposition came to a consensus to cancel the tax plan until 2027.
A joint appeal from the country’s authorities states that the decision will take into account the requests of more than 15 million young South Korean crypto investors and will support their activity in the national digital asset market.
The amendment to the Income Tax Law, which includes deferring the taxation of virtual assets and eliminating the tax on financial investment income, is expected to be approved by the plenary session of the National Assembly soon.
Earlier, the chairman of the South Korean Financial Supervisory Commission (FSC), Kim Byung-hwan, said that the country would not rush to create a government reserve in bitcoins, as the new White House administration in the United States plans to do.
Source: Bits

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