Han Calls for Two-Year Delay to South Korea's Virtual-Asset Tax
Former People Power Party leader Han Dong-hoon is calling for a two-year delay to South Korea's planned virtual-asset tax. The tax was set to take effect next year, but Han argues that differing national timelines for implementing the Crypto-Asset Reporting Framework (CARF) make it necessary to delay.
According to Han, countries such as the UAE, Seychelles, Hong Kong, and Singapore will not be able to carry out their first information exchange with CARF until 2028. The US would follow in 2029. If South Korea introduces the tax before these countries implement CARF, investors may shift assets to overseas exchanges or decentralized finance services.
During a two-year delay, Han suggests that authorities can obtain trading records from domestic and foreign exchanges after major countries begin CARF information-sharing. This would provide time to pursue a second phase of virtual-asset legislation and clarify the legal nature of taxable crypto assets before taxation begins.