PiCK
Summary
- The government said it will delay cryptocurrency taxation for another two years beyond its planned launch next year.
- Deputy Prime Minister Lee Hyeong-il said he "takes it seriously and expresses regret" over an additional delay after three previous postponements.
- The government said it decided on the delay after considering fairness issues between investors moving to overseas exchanges and domestic investors, as well as the enactment of the Framework Act on Digital Assets.
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Lee Hyeong-il, deputy prime minister and finance minister, said he takes the government’s latest decision to delay cryptocurrency taxation "seriously."
Lee made the remarks at a Nov. 11 plenary session of the National Assembly’s Strategy and Finance Committee, responding to a question from Rep. Bae Jun-hyung of the ruling People Power Party, who said the government should at least express regret over the repeated delays and the confusion caused to the public.
"I take seriously the fact that, after three previous delays, we decided on another two-year postponement, and I express my regret," Lee said.
He added that the government made the decision after weighing concerns over fairness between investors moving to overseas exchanges and those remaining on domestic platforms, as well as related matters including the enactment of the Framework Act on Digital Assets.
"I again take this matter seriously," he said.
The government announced on Nov. 5 that it would delay for another two years the taxation of income from crypto transfers and lending, which had been scheduled to take effect next year. Taxation of crypto income was first introduced through a 2020 revision to the Income Tax Act and was originally set to begin in 2022. It was later pushed back three times, to 2023, 2025 and 2027. If the latest plan goes ahead, that would mark a fourth delay.
JOON HYOUNG LEE
