- South Korea’s Democratic Party agrees to delay crypto taxation for an additional two years.
- Arthur Hayes, co-founder of BitMEX, believes the move supports the ongoing crypto bull market.
- South Korea joins other countries, like Russia, in easing crypto taxation policies.
The crypto community is buzzing with excitement as Park Chan-dae, the floor leader of South Korea’s Democratic Party (DP), confirmed that his party has agreed to delay the taxation on cryptocurrencies for an additional two years.
The decision follows extensive discussions, with Park stating that further reforms to the current system are necessary before implementing any tax measures on the industry.
South Korea Delaying Crypto Tax
Speaking at a press conference in Seoul, Park highlighted the necessity of additional system improvements and stated that now is not the right time to introduce taxes on crypto assets.
He explained that more time is needed to fine-tune the regulatory framework before imposing taxes on digital assets. “At this point, it is clear that further regulatory adjustments are necessary,” Park remarked. This move comes amid ongoing negotiations surrounding the country’s budget and related bills.
Crypto Bull Market Can Continue
The decision to delay crypto taxation has sparked optimism within the crypto community, with many seeing it as a bullish factor for the ongoing market rally. Arthur Hayes, co-founder of the BitMEX exchange, expressed that the bull market can continue as South Korea postpones the capital gains tax on cryptocurrencies for another two years.
The crypto market has been in a bull run, with Bitcoin trading at $96K, eyeing the lofty $100K mark. Bitcoin’s surge has positively impacted the broader market, which is now valued at $3.4 trillion.
South Korea Joins Global Trend in Easing Crypto Taxation
South Korea’s move is part of a broader global trend, as other countries are also revising their crypto taxation policies. Last Friday, Russian President Vladimir Putin signed a law recognizing Bitcoin and other cryptocurrencies as property.
The new law exempts cryptocurrency mining and sales from VAT, while income from mining will be taxed based on market value. Digital currency transactions will be taxed at 13% for income up to 2.4 million rubles and 15% for amounts exceeding that threshold.
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