South Korea has pushed back its controversial tax on crypto gains by one year. The National Assembly of South Korea passed a bill on Tuesday to push back the implementation of crypto taxation to January 2023. The bill once cleared by the plenary session would impose a 20% tax on crypto gains of more than 2.5 million ($2,253) annually.
The crypto taxation regulations have got mixed reviews since its proposal, there are many who believes the taxation would benefit the sector while there are others who see it as a burden. Earlier in April this year, finance minister Hong Nam-ki had claimed that crypto taxation is inevitable and dismissed any possibility of postponement.
Kim Young-jin, Chairman of the Tax Subcommittee believes imposing taxation on the crypto market without a clear government definition wouldn’t be a good idea.
“There is an inconsistent system for imposing taxes without a clear basis on how to legally define cryptocurrencies in our system… but only in Korea does taxation come before regulation.”
South Korea over the past couple of years has emerged as one of the leading nations in terms of crypto regulations. The country recently implemented new Anti-Money Laundering (AML) regulations, leading to hundreds of small and medium-sized crypto exchanges shutting their door. The new regulations implemented strict KYC rules and prohibited any form of shadow trading. Crypto exchanges were required to partner with local banks and build real bank accounts for traders, which only a few big crypto exchanges managed to achieve by the end of the deadline in September.
Is Crypto Tax Good or Bad For Crypto Ecosystem?
Crypto taxation has become one of the most talked-about regulations these days, where some countries like South Korea have formulated new crypto taxation rules while many other nations plan to tax it under existing rules. While people with Libertarian views don’t seem to be in favor of any form of taxation, market pundits believe it’s a good thing as it legalized and recognizes the crypto market.
Many small and tourist-centered nations are even planning to exempt crypto taxation in certain tourist hot spots and offer tax rebates to crypto companies to establish their business.
- OpenSea’s Meteoric Rise May Trigger An Ethereum Crash, Here’s Why
- Breaking: JPMorgan Closes Uniswap (UNI) Founder’s Accounts
- UBS Warns Of Apocalyptic Crypto Winter And The Cryptocurrency Prices Are Poised To Crash
- SOL Tanks 6% As Solana Faces Another 48 Hour Outage, Boom and Bust Moment for Solana?
- Fantom (FTM) Surpasses Avalanche and Solana as DeFi TVL Crosses $12 Billion
- Buy The Dip Survey Shows 61% Of Chinese Bitcoin Investors Still Willing To Bet On Bitcoin
- Mike Novogratz Bets To Pay Peter Schiff $1 M If Bitcoin Price Stays Below $35,000 After 2022
- “At Some Point There’ll Be A Flash Crash” Says Gold Bull Peter Schiff
- Binance And FTX Worst Hit Exchanges As Losses Climb Almost Two Billion Combined
- Bitcoin S2F Founder says Current dip cannot stop Bitcoin from Adding Another Zero
- Solana Creeps Higher, Looks To Revisit January Highs AT $177.0
- Ethereum Price Analysis: Fibonacci Retracement level 0.618 Triggers Recovery Rally In ETH Coin
- BTC Price Analysis: Death Crossover Brings Nightmares On Satoshi Street; Is This A Buying Opportunity?
- Bitcoin Death Cross Haunting Investors, Will BTC Make or Break?
- DOGE Price Analysis: Highly Influential Bearish Trendline Undermines Bullish Attempts; Buy, Sell Or Hold?
- Terra Price Analysis: Will LUNA Price Bounce Back at 0.382 Fibonacci Retracement?
- SAND Price Analysis: Sandbox Price Losses 50% Retracement Level, Good Time to Buy?
- LINK Price Analysis: Chainlink price reclaims 200-day EMA, Emerging trendline Suggests More Upward Price Movement
- Harmony Price Analysis: Rising Parallel Pattern Could Lead 30% Growth In $ONE Price
- Ripple Price Analysis: XRP Bears Struggle To Breach $0.7 Support Zone, Is A Reversal Next Move?