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South Korea to Consult Major Cryptocurrency Exchanges on Taxation Policy
The South Korean government is set to meet with representatives from the five largest cryptocurrency exchanges—Upbit, Bithumb, Coinone, Digital X, and GOPAX—on October 20. This meeting aims to gather industry feedback regarding the taxation of virtual assets, which is currently scheduled to take effect in January 2027. The proposed tax includes a 22% income tax on virtual asset transfers and lending income, with a basic tax exemption of 2.5 million Korean won.
This tax policy has faced multiple delays since its initial proposal in 2020, having been postponed three times. Despite these delays, the government is moving forward with preparations, and the National Tax Service of Korea is anticipated to make a related announcement in November.
In addition to the tax discussions, South Korea's financial regulatory authorities are expediting the development of the 'Basic Law on Digital Assets.' This legislation is expected to be finalized by the end of October, paving the way for subsequent consultation procedures.
Source: KLEA News