The South Korean government have issued a taxation law on cryptocurrency trading gains back in July 2020. The new tax law suggested a 20% tax rate on income from crypto trading for crypto traders who earn more than 2.5 Million Won a year ($2,260 USD).
The new tax, that was supposed to come in power on October 2021 was delayed to January 2022.
The delay of the new South Korean crypto tax comes as a response to a feedback from the cryptocurrency business, stating it will not be possible to deliver the technical capabilities for tax calculation in this timescale. As such, the South Korean Blockchain Association requested the government to delay the new crypto tax until 2023.
Despite the disagreements on the time period for the new law, the 20% tax rate wasn’t yet debated by the crypto business in South Korea. The 20% tax is a universal to the South Korea, with the same tax applied to any other forms of income.
Despite facing opposition from the government and banks, the South Korea still hosts a large cryptocurrency business sector, featuring some of the largest cryptocurrency exchanges like Huobi, UPbit, and Bithumb.