South Korean President Wants to Delay Cryptocurrency Tax

South Korean President-elect Yoon Seok-yeol announced that he will be pushing for the postponement of taxation of income from investments in crypto-currencies until a new set of rules called the Digital Assets Basic Law (DABA) is passed.

The cryptocurrency tax in South Korea was originally supposed to go into effect in fiscal year 2022, but it was pushed back to 2023 last December.

The South Korean president intends to prevent the entry into force of the cryptocurrency tax law until reasonable legislation is passed to protect consumers, which could happen by 2024.

The president-elect’s team has been exploring tax deferral options since March, when Yoon won the election.

DABA was conceived by the Financial Services Commission (FSC) this year and entails a number of laws relating to consumer protection. The law covers the issuance of tokens, non-fungible tokens (NFTs), listings of centralized exchanges (CEXs), international finance in relation to cryptocurrencies, and includes a response to US President Joe Biden’s crypto-currency executive order.

Through DABA, FSC plans to implement a crypto-insurance system as a measure to protect against hacks, system errors and unauthorized transactions.

DABA imposes a 20% tax on profits from investments in cryptocurrencies that exceed about $2,100 per year.

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