- South Korea delays crypto tax until 2027, easing pressure on retail investors amid political and market uncertainties.
- Lawmakers reject raising the tax threshold, leaving smaller traders exposed as larger investors gain more time to prepare.
- Record $254B November trading volume reflects strong crypto interest despite regulatory delays and upcoming taxation debates.
The deferral of the Bitcoin taxation proposal to 2027 has been agreed by the South Korean National Assembly. Due to strong opposition, the program’s initial proposal, which called for a 20% tax on Bitcoin earnings, has been repeatedly delayed. On December 10, 204 MPs supported the delay, 33 opposed it, and 38 abstained from voting. The decision was taken after a number of delays, including a two-year extension until January 1, 2025.
Political Support and Controversies Over the Delay
There is considerable political unrest over this move. The amendment gained momentum as the Democratic Party of Korea joined the ruling People Power Party in supporting the delay, despite President Yoon Suk-yeol declaring martial law on December 3. Already delayed once from the initial plan for 2022 to 2025, due to the need for more planning, lawmakers have opted to further delay the crypto tax until 2027 with the recent approval.
The debate surrounding the tax has been intense. The DPK proposed an amendment to raise the tax threshold from 2.5 million won ($1,791) to 50 million won ($35,826). This move aimed to exempt smaller retail investors from the tax, targeting only wealthier traders. Despite some support, this amendment was not adopted. Critics argue that the delay benefits larger investors while smaller traders remain vulnerable to market volatility.
Impact of the Delay on Crypto Market
South Korean cryptocurrency traders’ actions will probably be impacted by the tax postponement. Local platform trading volumes have increased as a result of the nation’s retail investors’ keen interest in digital assets. A new high of $254 billion in trade volumes was set in November 2024, according to the latest reports. This peak signifies a noteworthy recovery from the 2022 and 2023 lows. It also shows how excited people are still about cryptocurrencies in spite of regulatory uncertainty.
Source: Daily Chartbook
The decision to postpone crypto taxation until 2027 has generated mixed reactions. While it may benefit larger investors, it also raises concerns about the impact on smaller traders. The approval signals ongoing support for crypto in South Korea, but the landscape remains dynamic.
The post South Korea Delays Crypto Tax to 2027 Amid Political Tensions and Record Trading Volumes appeared first on Crypto News Land.
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