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The South Korean president’s intention to raise the crypto tax threshold has encountered a snag

According to a report released on Thursday, the South Korean National Assembly Research Service (NARS) asserted that a 20% tax on cryptocurrency gains set for 2023 must maintain a 2.5 million won (US$1,942.20) threshold, contradicting new President Yoon Suk-initiative yeol’s to raise the limit to 50 million won.

According to the NARS Current Issues and Analysis report, digital asset gains should be classed as financial investment income and allow for loss carryover deductions.

The report also confirmed that the crypto tax’s start date of January 1, 2023 should not be pushed back to 2025, as Choo Kyung-ho, the country’s deputy prime minister and finance minister nominee, requested in early May.

Yoon promised people during his election campaign that he would raise the crypto tax threshold to 50 million won, the same as stock gains.

Yoon’s presidential transition committee stated earlier this month that taxation will proceed following the passage of investor protection legislation, implying that there may be further delays.

South Korea would impose a 20% tax on digital asset revenue over 2.5 million won on January 1, 2023.

The tax policy was due to take effect on Jan. 1, 2022, but critics said it was too soon given the lack of investor protection measures and was unjust because the tax on financial asset gains began at 50 million won.

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