[Taklimakan Blog] Korea Urged Not to Rush to Taxation for Cryptocurrencies

Korean Blockchain Association urges Korean authorities to postpone taxation of cryptocurrency assets until 2023 to prepare appropriate infrastructure.

The Korean cryptocurrency community has called on the authorities to postpone the introduction of taxes for the cryptocurrency industry until January 1, 2023, writes the Korean edition of ZDNet. So far, the entry into force of tax controls on the cryptocurrency and blockchain market in South Korea is scheduled for October 1, 2021.

According to the association, the authorities will not have time to prepare the tax infrastructure properly until October 1 of next year.

In particular, the association refers to the law on the use of information on financial transactions, according to which the tax office can collect confidential information only after the approval of the exchanges themselves by the end of September 2021. Just a month later, the Korean tax office plans to start calculating tax data.

“The industry meets the standards for taxation of income from cryptocurrencies and is ready to actively cooperate in this direction, but there is too little time for implementation,” the association said.

In addition to creating tax infrastructure, exchanges will also need to implement an information security management system and verify all user accounts.