South Korean lawmakers chose to delay its implementation until 2023, which has also been moved to 2025.
On July 21, the South Korean federal government reportedly delayed the implementation of its 20% crypto tax until 2025, according to South Korean media outlet hankyung.
Lack of coherent response to the crisis
According to the report, the federal government cited the lack of a proper financial protection system as well as existing unfavorable market conditions as the reason it chose to delay the implementation of the crypto tax for another two years.
Terra’s capitulation in May would have resulted in several losses for the country’s investors. South Korean exchanges increased investor losses due to their lack of a coherent response to the crisis.
The report adds that a “digital property framework law” will be implemented in 2025 when taxation works. The new framework would be adapted to meet international standards, referring to the U.S. regulatory report on virtual assets that would be released later this year.
Initially, the 20 percent crypto-tax was to be implemented in January 2022. However, South Korean lawmakers chose to delay its implementation until 2023, which has also been moved to 2025.
South Korea has actually stepped up its crypto policy efforts in light of the Terra implosion.
District prosecutors from Asian countries raided 7 regional crypto exchanges on July 20 to take records of transactions and other products that could help its review of the network collapse.
Aside from that, efforts are underway to increase regulatory oversight of crypto exchange operations in the country.
Many federal governments are particularly interested in taxing the crypto market due to its record-breaking growth opement in the previous years.
India has actually introduced numerous tough tax routines, which include a 30% tax on crypto that has actually negatively impacted the trading volume of the country’s crypto exchanges. Reports have also revealed that the federal government had no goal of reducing its tax on crypto transactions.
Crypto traders have rebuffed Thailand’s efforts to impose a 15 percent tax in the country.
Crypto traders in the U.S. owe the Internal Revenue Service (INTERNAL REVENUE SERVICE) up to $50 billion in unpaid taxes.