The South Korean government announced on July 21 that it would be delaying a 20% tax on cryptocurrencies to 2025.
What Happened: This tax was initially meant to start on Jan. 1, 2023. However, stating the necessity of creating measures for investor and consumer protection and the current bearish and immobile market outlook, the South Korean government has elected to delay its decision. The government further stated that its plans for levying a further 20% tax on profits from cryptocurrencies more than 2.5 million won ($1,900) within the next year will stay unaltered.
Why It Matters: Having first announced this tax in January 2021, this is the second time the South Korean government has delayed its plans. It is further rumored the new South Korea President Yook Suk-yeol is looking to introduce the Digital Asset Basic Act (DABA) by early 2023.
Thus, amidst market uncertainties and plunging market conditions, the South Korean government continues to work on and pivot its regulatory framework surrounding cryptocurrencies.
See Also: Is Bitcoin A Good Investment In 2022?
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