South Korea's crypto taxation saga continues. The government is eyeing a third postponement of its cryptocurrency gains tax. This move comes as investors voice concerns over system readiness and market uncertainty.
A six-year setback looms. The ruling party's new bill could push the tax implementation to 2028. That's a far cry from the original January 2022 start date.
Why the holdup? It's a mix of investor anxiety and political calculation. The daily trading volume has taken a nosedive since Q1 2024. In March, it hit 20 trillion won ($14.5 billion). Now it's down to a measly 2 trillion won.
Industry bigwigs are spooked. They reckon the tax could send investors packing. "Most will bail, and trading will tank even more," one insider muttered.
Politicians are playing it safe. With 6.5 million crypto investors in South Korea, they're treading carefully. Half of these punters are in their 30s and 40s – a demographic that packs a punch at the ballot box.
But not everyone's buying it. Critics slam the government for being too easily swayed. "They're dancing to the taxpayers' tune," one naysayer grumbled.
Some officials are calling BS on the "lack of system" excuse. They point out that the government's had three years to get its act together. "They're just not pulling their weight," one critic fumed.
There's a worry that this delay could make the tax law toothless. The same old excuses could crop up again come 2028.
The Finance Ministry's staying mum for now. They'll spill the beans by month's end.
In the meantime, crypto traders are holding their breath. Will they dodge the tax bullet once more? Only time will tell.