South Korea crypto industry opposes 2024 tax plan

South Korea’s crypto industry is urging a review of the planned January 2024 rollout of a tax on virtual asset income, citing market unpreparedness and the need for a delay. A policy paper from the Digital Asset eXchange Alliance (DAXA) highlights concerns over the calculation of acquisition costs for virtual assets transferred from overseas exchanges or personal wallets, noting the absence of a public system to verify initial acquisition dates and purchase prices. Additionally, the industry argues that implementing a withholding tax system for non-residents would be challenging, as information from exchanges’ know-your-customer procedures alone is insufficient to accurately determine residency status under tax law.

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