South Korean lawmakers have proposed pushing back the implementation of cryptocurrency capital gains taxes until 2028, citing current negative market sentiments.
Originally set for January 2025, the delay is seen as necessary due to concerns that imposing taxes hastily could further discourage investment in virtual assets, which are considered riskier than traditional stocks.
The move reflects President Yoon Suk-yeol’s campaign promise to postpone the tax to ensure a clear regulatory framework is in place first.
However, the Ministry of Economy and Finance has not finalized the decision, with new tax policy amendments expected by month-end.
South Korea has emerged as a global leader in crypto adoption, with its currency, the Won, dominating global crypto trades, totaling $456 billion in the first quarter of this year.
The country has also been proactive in implementing regulations to protect crypto users.
Japan’s Financial Services Agency (FSA) is working on a proposal to amend existing financial laws, aiming to bring cryptocurrencies under the same regulatory framework as traditional financial instruments.
The U.S. Commodities Futures Trading Commission (CFTC) has taken a significant step by revoking a previous directive that had suggested stricter oversight of digital asset derivatives.
European regulators are pushing for stricter capital requirements on insurers holding cryptocurrencies, marking a significant shift in the EU’s approach to digital assets.
A top official from China’s State Administration of Foreign Exchange (SAFE), Li Bin, emphasized the agency’s commitment to strengthening its ability to track and analyze the influence of cryptocurrencies on capital movements.