The cryptocurrency market has been witnessing important developments recently. While the news from South Korea this week delights investors, the news from Russia points to the expansion of the cryptocurrency ecosystem. While the South Korean government has decided to postpone the expected crypto tax implementation for three years, Russia plans to allow traditional exchanges to offer crypto trading services and its central bank to create a crypto platform. These developments show a change in both countries’ perspectives on cryptocurrencies and offer new opportunities for investors.
Cryptocurrency tax may be postponed in South Korea
First of all, according to breaking news, the South Korean government is considering delaying the implementation of crypto profits tax for three years. The South Korean government has decided to postpone the implementation of crypto earnings tax for three years. The tax, which was originally planned to start in January 2025, will be postponed until January 2028 with this delay. This postponement decision is important in terms of relieving the pressure on investors due to the decline in Bitcoin price and fluctuations in the general crypto market in recent months.
One of the main reasons behind the postponement decision is the increasing interest of South Korean investors in cryptocurrencies. Data presented by the Financial Services Commission (FSC) in May 2024 shows that the number of crypto investors in the country reached 6.45 million people. This shows that investors’ interest in cryptocurrencies and their confidence in this asset are increasing. However, some critics argue that the decision to postpone raises concerns that the crypto market is inadequately regulated and the tax system is not robust. They also note that delaying does not solve the problem and crypto taxation will come to the fore sooner or later.
Ease for cryptos is coming in Russia
On the other hand, Russia brings ease of investment in crypto money. The Russian Ministry of Finance has proposed allowing traditional exchanges to offer cryptocurrency trading services to certain qualified investors. The ministry also gives the green light for the Bank of Russia to create an experimental cryptocurrency platform for international payments starting September 1. These developments show that there is a softening in Russia’s attitude towards cryptocurrencies. Chairman of the State Duma Financial Market Committee, Anatoli Aksakov, stated that exchanges are ready to carry out cryptocurrency transactions and that there will be a rapid entry into this field with the completion of legal regulations.
Cryptocurrency taxation and regulation remains the subject of heated debate in both countries. While the postponement decision in South Korea pleases some investors, it is also argued that the tax system is not robust enough and the postponement does not solve the problem. In Russia, although new regulations offer investors more options, it is questioned how much the cryptocurrency market can be controlled and whether there are legal gaps.
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