New South Korean president refuses to introduce income tax on cryptocurrencies

The newly elected president of South Korea has said that there will be no income tax on cryptocurrency investments until the legislation provides consumer protection.

Yun Seok-yeol announced this decision yesterday — he will insist on postponing the taxation of income from cryptocurrency investments, at least until a new bill, called the Basic Digital Assets Act, is passed.

Initially, the decision on the cryptocurrency tax in South Korea was supposed to come into effect in fiscal year 2022, but last December it was postponed to 2023. According to experts, the necessary legislation to protect consumers in the cryptocurrency environment can be adopted no earlier than 2024.

The controversial cryptocurrency tax law, which has been postponed, will levy a 20% tax on profits from cryptocurrency investments if the amount of income exceeds USD 2,100 per year.