*🇰🇷 South Korea Says: "Law First, Tax Later" — Crypto Tax on Edge Again*
The crypto tax drama in South Korea is back. And this time, it's coming from INSIDE the ruling party.
*What happened:*
Senior lawmaker *Rep. Min Byung-duk* (DPK Policy Committee) yesterday at EastPoint Seoul 2026 said:
> "It's not right to start taxation when the basic law has yet to be established."
He wants the *22% crypto tax* scheduled for *Jan 1, 2027* to be DELAYED until after the *Digital Asset Basic Act* passes. f154
*Why he says the system isn't ready:*
1. *Invisible Overseas Profits:* Korea can't track money on Binance, Bybit etc. The global data-sharing system *CARF* first exchange only starts in 2027-2028. UAE, Seychelles, HK, Singapore - where most Korean traders use - won't share until 2028, US until 2029. So only domestic traders would get taxed.
2. *Taxed even when you lose:* No loss carryforward system. You could profit 10M won one year, lose 10M next year, still pay tax on first year.
3. *No acquisition cost rule:* How to calculate your buy price? Still unclear. 7873
*The Split:*
- *Ruling party + Opposition:* Both now want delay. Opposition even proposed pushing it to *2030*.
- *Finance Minister Lee Hyoung-il:* Says "Go ahead as planned." Claims 85% of investors hold less than 5M won ($3,670) so with 2.5M won basic deduction, most pay nothing. f154
A petition to delay has already crossed *50,000 signatures* for parliamentary review.
*My Take:* This is the 4th delay attempt. Korea wants to tax crypto like stocks (20% + 2% local = 22% over 2.5M won gain) but without stock-like rules for tracking and losses, it will just push traders offshore.
Is Korea protecting investors or just not ready?
#SouthKorea #CryptoTax #Bitcoin #DigitalAssetAct #CARF #CryptoNews #KoreaCrypto
The crypto tax drama in South Korea is back. And this time, it's coming from INSIDE the ruling party.
*What happened:*
Senior lawmaker *Rep. Min Byung-duk* (DPK Policy Committee) yesterday at EastPoint Seoul 2026 said:
> "It's not right to start taxation when the basic law has yet to be established."
He wants the *22% crypto tax* scheduled for *Jan 1, 2027* to be DELAYED until after the *Digital Asset Basic Act* passes. f154
*Why he says the system isn't ready:*
1. *Invisible Overseas Profits:* Korea can't track money on Binance, Bybit etc. The global data-sharing system *CARF* first exchange only starts in 2027-2028. UAE, Seychelles, HK, Singapore - where most Korean traders use - won't share until 2028, US until 2029. So only domestic traders would get taxed.
2. *Taxed even when you lose:* No loss carryforward system. You could profit 10M won one year, lose 10M next year, still pay tax on first year.
3. *No acquisition cost rule:* How to calculate your buy price? Still unclear. 7873
*The Split:*
- *Ruling party + Opposition:* Both now want delay. Opposition even proposed pushing it to *2030*.
- *Finance Minister Lee Hyoung-il:* Says "Go ahead as planned." Claims 85% of investors hold less than 5M won ($3,670) so with 2.5M won basic deduction, most pay nothing. f154
A petition to delay has already crossed *50,000 signatures* for parliamentary review.
*My Take:* This is the 4th delay attempt. Korea wants to tax crypto like stocks (20% + 2% local = 22% over 2.5M won gain) but without stock-like rules for tracking and losses, it will just push traders offshore.
Is Korea protecting investors or just not ready?
#SouthKorea #CryptoTax #Bitcoin #DigitalAssetAct #CARF #CryptoNews #KoreaCrypto
