As reported by News1 Korea this last October 14, the Korean Blockchain Association (KBA) suggests that the government delay the new tax framework implementation up until 2023. The KBA clarifies that it is not against the proposed 20% tax rate. However, it believes that the industry needs more time to prepare and adjust for the upcoming tax reform.
The KBA highlighted the short period wherein regulations apply for the previous tax framework and the beginning of the new scheme as one of the primary reasons it suggests for the delay. As it currently stands, crypto exchanges are required to report all trades that fall in line with the previous tax code until October 2021 – the scheduled enforcement of the tax reform. KBA believes that the allotted time is insufficient and would only result in further complications if not extended.
The Chairman of the KBA, Oh Gap-soo, noted that this is the very first time that the government dipped its hands with the concept of taxing cryptocurrencies. Thus, another reason why putting the implementation on ice is a good idea. Regulators and crypto firms may not easily see eye-to-eye, which would only lead to further uncertainty and disarray once the government persists with its October 2021 schedule.