South Korea's Crypto Tax Delays Rooted in System Readiness Concerns
A study from Seoul National University has shed light on why South Korea has repeatedly delayed taxing virtual assets. The research analyzed four major tax policy changes under the current administration, including the digital asset tax.
The study found that concerns about system readiness and infrastructure weighed heavily in shaping the final decision, rather than public opinion.
This 'problem-stream-dominant mechanism' contrasts with other tax policies that followed different dynamics. The researchers suggest that even under similar political conditions, internal characteristics of each policy and external factors can lead to distinct decision-making mechanisms.
The digital asset tax in South Korea has been a contentious issue, with multiple delays pushing the implementation date from 2022 to 2023, and now potentially to 2025. The study offers a framework for understanding these repeated postponements.