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Crypto Regulation

South Korea Finance Ministry Seeks Two-Year Delay of 22% Crypto Tax

South Korean Finance Minister Lee Hyoung-il said Seoul will seek a two-year postponement of the 22% tax on crypto gains, paired with a three-year loss carryforward, a day after the ruling Democratic Party called for a delay. The proposal would push the tax’s implementation to 2029 if approved.

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AI take

The finance ministry's alignment with the ruling party's call for delay signals that crypto taxation in South Korea is now a politically negotiated timeline rather than a settled policy, which matters more than the two-year gap itself. The pairing with a three-year loss carryforward is the more substantive detail, acknowledging that taxing gains without offsetting losses would be a one-sided regime. Whether the National Assembly codifies this or the delay becomes a recurring cycle is the open question worth watching.

Generated by AI for reference only.

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