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Investors call for delay in South Korea’s crypto tax implementation

Investors call for delay in South Korea's crypto tax implementation

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TL;DR

  • A petition in South Korea requests a two-year delay in the planned taxation of cryptocurrency gains, aiming to prevent investor migration to foreign exchanges.
  • The petition, needing 50,000 signatures for legislative review, also demands greater transparency and oversight of the Digital Asset Exchange Alliance (DAXA).
  • South Korea’s cryptocurrency market is thriving, with a single exchange, Upbit, handling nearly 9% of global trading volume in March.

A petition has been launched in South Korea requesting the government to delay the introduction of taxes on cryptocurrency gains. The petition, submitted to the National Assembly on March 21, advocates for a two-year postponement of the tax plan, which is presently scheduled to commence in January 2025. 

This request stems from concerns over a potential migration of crypto investors to overseas exchanges due to the country’s lack of readiness for such taxation. The petition has accumulated 10,888 signatures as of Tuesday afternoon in Asia, with a target of 50,000 signatures by April 20 to prompt a legislative review.

Furthermore, the petition calls for increased regulatory oversight of the Digital Asset Exchange Alliance (DAXA), an advisory group comprising the top five cryptocurrency exchanges in South Korea. It criticizes DAXA’s decision-making process on the support and discontinuation of certain cryptocurrencies as opaque and subject to arbitrary judgment.

South Korea boasts a robust cryptocurrency market, highlighted by the performance of Upbit, the leading exchange, which has processed $185 billion in trading volume in March alone. This figure represents nearly 9% of the total global exchange trading volume. The fervor around cryptocurrency trading in South Korea has intensified recently, with trading volumes on local exchanges surpassing those on the country’s KOSPI stock market on certain days. Specifically, on March 11, South Korean exchanges recorded a trading volume of 11.85 trillion Korean won ($8.8 billion), exceeding the trading activity on the KOSPI, according to local reports.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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