South Korea's National Assembly is pushing for a delay to the introduction of specific taxation for digital assets.
- According to a report Wednesday by local news source DongA.com, a proposed legal amendment bringing in the tax regime is planned to come into effect as of October 2021.
- However, the National Assembly said more time is needed to build the relevant tax infrastructure after cryptocurrency exchanges said they couldn't be ready by the deadline.
- As such, the National Assembly is seeking to delay the start of the taxation period to January 2022.
- The matter is expected to be decided by the assembly's Tax Subcommittee as soon as possible.
- The Ministry of Economy and Finance tabled the proposal in July, seeking to bring in a 20% levy – plus a 2% local income tax – on cryptocurrency trading profits above 2.5 million KRW (around $2,260).
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.