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South Korea’s presidential office has decided to delay taxation on cryptocurrency income, which had been scheduled to take effect on Jan. 1 next year, according to the Seoul Economic Daily.
A presidential office official said today the issue had been discussed in the direction of postponing implementation. The government had originally planned to begin taxing virtual asset income through a 2020 revision to the income tax law, but the measure has already been delayed three times.
Under the current schedule, the tax would take effect on Jan. 1. The presidential office decided on another delay while citing insufficient preparations for taxation and public sentiment among younger people. The office was also said to have considered that the U.S. will join the Crypto-Asset Reporting Framework, or CARF, from 2029.
CARF is a system under which tax authorities in countries around the world collect users’ residency and transaction information from crypto asset service providers and exchange that data with one another. The delay in U.S. participation could raise concerns that taxation would be concentrated only on users of South Korean exchanges because of the size of the domestic trading market.
Within the ruling Democratic Party as well, a revision bill has already been proposed to begin crypto taxation in 2029. The People Power Party is also calling for a delay, and the law is expected to be revised during tax bill reviews in November.