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Crypto: 0% taxation in South Korea?

The recent election of Yoon Suk-yeol could significantly change the crypto landscape in South Korea. Openly pro-crypto, the president-elect notably made a sensational announcement: the promise of zero taxation on crypto gains that do not exceed $40,000 a year! 

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Lagging behind other countries in terms of crypto adoption, South Korea could quickly adopt a more favorable climate. A new climate driven by the proposals of a newly elected president.

The Promise Of 0% Taxation On Earnings Under $40,000!

 

Among the president-elect’s campaign promises, one particularly caught the attention of cryptophiles. Indeed, Yoon Suk-yeol has promised not to tax capital gains on cryptocurrencies if they do not exceed 50 million won per year (about 40,000 dollars). A proposal made to harmonize the country’s taxation. Indeed, stock market gains on the purchase of shares are already exempt at this same threshold of 50 million won.

This promise probably weighed in the balance and on the outcome of the election. And especially with the youngest electorate. As revealed by a recent study conducted in South Korea, nearly one in three students have already invested in cryptocurrencies. According to data from the financial regulator, more than 15 million people have accounts with brokers offering digital assets.

Taxation of cryptocurrencies has been a hot issue in South Korea ever since parliament introduced a bill in 2020 that would impose a 20% tax on cryptocurrency earnings. Without distinction of ceiling.

A Pro-Crypto Program!

The 60-year-old candidate Yoon Suk-yeol notably campaigned on a platform largely favorable to digital assets. In addition to the promise of tax relief, the candidate had also announced his desire to authorize ICOs (Initial Coin Offering). A measure supposed to boost the South Korean blockchain economy.

This campaign promise was also welcomed by the secretary general of the Korean association for the blockchain:

We welcome his stance as the president wants to boost the crypto industry. Since ICOs are banned in Korea, we have no choice but to issue coins in Singapore and other countries. Companies and startups will be able to easily raise funds from investors (if the ban is lifted).

Investors and cryptophiles are now waiting for concrete action. Be that as it may, the measures announced should allow the blockchain ecosystem to develop projects more serenely. The president elected last week is expected to take office next May.

South Korea Is Multiplying Crypto Initiatives!

 

  • While Yoon Suk’s campaign promises will undeniably boost the crypto sector, South Korea has already begun its transformation. Lagging in adoption compared to other Asian countries such as Japan, public or private initiatives are no longer lacking today.

As a digital stronghold in the world, South Korea is also seeking to find a place for itself in the new digital economy. Recently, the country just invested $187 million in a national metaverse project 

For the improvement to last, the regulatory framework will have to stabilize. Last year, the crypto industry took a particularly hard time in South Korea. Faced with increasingly strict administrative measures, two-thirds of exchanges have had to close shop. Closures that resulted in a loss of $2.6 billion.

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