The newly elected president of South Korea Yoon Suk-yeol has announced that he would push to defer taxation on crypto investment gains until a new set of regulations called the Digital Asset Basic Act is passed.
South Korea’s crypto tax was initially set to come into effect for the 2022 fiscal year but was pushed back to 2023 last December. Reports have confirmed that Yoon will ensure that the crypto tax law does not come into effect until reasonable legislation is in place to protect consumers.
The president-elect’s presidential transition team has been exploring its options in delaying the tax since March, when Yoon won the election on the grounds that there was insufficient legislation in place to justify levying taxes on digital assets.
DABA was conceived by the Financial Services Commission (FSC) this year and entails a series of laws related to consumer protections. Through DABA, the FSC plans on introducing a crypto-insurance system as a backstop measure against hacks, system errors and unauthorized transactions.
