South Korea’s Finance Minister Nominee Calls For Delaying Crypto Tax for Two Years

On Monday, Choo Kyung-ho, the yet-to-be-confirmed nominee for deputy prime minister and finance minister, proposed a 20% capital gains tax on digital assets and stock market investments should be postponed until January 2025. Choo stated it was too early for the crypto business to handle a 20% levy on trading gains at a National Assembly confirmation hearing. Choo feels that the tax should be postponed until the crypto sector has matured and new legislation has been enacted to ensure transparency and investor protection in digital asset transactions. South Korea Announced a 20% Tax on Cryptocurrency South Korea announced a 20% tax on cryptocurrency gains over 2.5 million KRW ($1,974.10) in December 2020. The ruling Democratic Party and the opposition People Power Party agreed in November 2021 to push back the implementation of the crypto tax from January 1, 2022, to January 1, 2023. Investors responded negatively to the news, stating that the new tax will hinder the rapidly growing crypto industry and that the threshold is too low, given that a proposed stock market tax would apply to capital gains above 50 million KRW (US$39,475.76). On January 1, 2023, a tax on stock market gains will take effect. During his campaign, President-elect Yoon Suk-yeol of South Korea promised that crypto investors would be taxed the same as traditional financial assets investors.The post  South Korea’s Finance Minister Nominee Calls For Delaying ...