South Korea has decided to postpone the taxation of crypto until 2027, providing an important period for investors and regulators to better prepare. Previously, the country was expected to impose a 22% tax on profits from crypto investments exceeding 2.5 million won (approximately 1,750 USD) per year, but this has been postponed several times and is now pushed to 2027.
Currently, South Korea taxes crypto as "other income," not allowing for loss offsets like the "capital gains" tax in the US or UK, which is disadvantageous for investors. Experts believe there needs to be clearer definitions of types of income from crypto such as mining, staking, or airdrops to reduce ambiguity and better support investors.
This tax delay could facilitate the development of the crypto market in South Korea, while also promoting discussions on how to manage and tax crypto more fairly and effectively in the future.
